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Swisher Mower and Machine Company

Autor:   •  September 27, 2016  •  Course Note  •  561 Words (3 Pages)  •  802 Views

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Swisher Mower and Machine Company

Case Guideline Questions

There are two affirmative decisions that are required if Swisher is to accept the proposal described in the case.  First, it must make strategic sense.  Second, it must make financial sense.  Think about this decision in the context of a broader strategy for Swisher.  Your 1-2 Page Summary should focus on Q#3, but bring in facts from Q#1 and Q#2 to support your reasoning.

  1. To better understand Swisher’s situation in the lawn care market, perform a SWOT analysis.  Come up with what you believe are its top 3 strengths, top 3 weaknesses, top 3 opportunities and top 3 threats.  Look for important patterns that may emerge from this analysis that are relevant to the question at hand.  You may want to think beyond the information in the case to consider the types of competitive threats by mower producers already in mass merchandisers.

Strengths

Weakness

  1. Iconic Zero turning radius Mover
  2. Successful market presence since 1956
  3. Diversified product range suitable for all types of customers
  1. Low sales volume
  2. Lower gross profit margin
  3. Lower geographic presence

Opportunities

Threats

  1. There is an opportunity to go National through aggressive advertising and recruiting new agents and dealers
  2. Make an alliance with Major national retail merchandise chain so improve sales and market presence
  3. Product diversification and improvements could improve the market share
  1. Competitors making alliances with retail merchandisers
  2. Agents leaning towards competitors
  3. If the retail merchandise agreement is made, possibility of retail merchandiser being aggressive over price and supply quantities

  1. Identify points of leverage, problems, vulnerabilities and constraints.  There may or may not be one or more of each.

Leverage

Problems

Swisher Mower company can leverage the retail merchandiser’s national presence to sell its products nation wide

Major problem is to meet the demand with existing infrastructure

Vulnerabilities

Constraints

Swisher company could be vulnerable to lose its power of decision making in product changes

The increased risk of liabilities

Company is also vulnerable to lose its current agents

Production is relatively low, additional arrangements to deal with the sudden hike in demand could need high initial investments

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