Generic Strategies and SWOT Analysis

GENERIC STRATEGIES AND SWOT ANALYSIS 6

GenericStrategies and SWOT Analysis

GenericStrategies and SWOT Analysis

ManulifeFinancial Inc is a company that offers financial solutions tocompanies in America, and Asia. Manulife Financial is based inCanada, and it offers a variety of financial services that to itsclients. The company’s strengths lie in the decentralizedoperations, where brands are customized to fit in each local area ofoperation. Localization strengthens brands as they solve localproblems, and this makes them responsive to customer needs.Decentralization also facilitates quick responses to client needs,and this endears the company to clients. A major weakness for thecompany is the lack of widespread services in Asia and otherdeveloping countries. Asian markets and other developing countriesare the new frontiers for any business that wishes to grow rapidly.However, Manulife Financial Inc is concentrated in Canada, and thislimits the potential growth of the company. The company ought tocapitalize on developing markets for growth.

SWOTanalysis for Chinese Firework

Chinesefireworks have been more than just a livelihood for the peopleLiuyang. Most people of Liuyang know how to make fireworks as it istheir source of livelihood. The company’s biggest strength is thatthe founder assembled a strong base of skilled manpower so that thecompany would launch on a high quality base, which would secure itsmarket share in the future. The founder used skilled manpower toproduce quality fireworks. The next strength was the location of themanufacturing company, where it was located in the area where the rawmaterials were readily available. This reduced the cost of productionand thus the fireworks were affordable from the inception of thecompany. Finally, the company was the first international exporterwith a large market share. The company accounted for the exportationof 60% of the world’s fireworks, which cemented its marketpresence.

Liuyang’sgreatest weakness is the over reliance on cheap labor from Chineseworkers who are often willing to work under poor working conditions.This is problematic in a world that is increasingly demanding forbetter working conditions as part of CSR. This has caused the companyto lose its manpower to other companies that offer better workingconditions. Additionally, the company faces a lot of competition fromother upcoming companies and this has shrunk its profit margin. Manysmall companies are emerging as the production of fireworks is notexpensive, and this has reduced the market share for Liuyang. Thecompany also lacks proper safety standards, and this has reduced itsmarket share as customers cannot trust its products.

Liuyanghas a great opportunity for penetrating the Canadian market as thegovernment of Canada lifted a ban on Chinese fireworks in 2009.Considering that Liuyang is the world’s largest fireworks exporter,the company stands to solidify its presence in the Canadian market,which has a huge potential. Locally, Beijing also lifted a fireworksban that had curtailed the sale of fireworks in the region. Thisoffers a massive market opportunity for Liuyang. The Chinesegovernment also regulated the price of fireworks and this hasstabilized prices due to low price competition. Liuyang can now focuson improving quality so as to gain more customers.

Thebiggest threat to Liuyang is the increase in labor wages while themarket continues to face increased entrance of new players in themarket. The increasing wage and reduced profits threaten to make thecompany less profitable, which can lead to its collapse. Liuyang alsofaces stiff competition due to new technologies such as laser beams,which are capable of having different sound effects. The newtechnology is more appealing as the sound- effects can be customizedto the needs of the clients.

STRENGTHS

WEAKNESSES

  1. Use of skilled manpower to produce quality fireworks

  2. The company was located in the area where the raw materials were readily available. This made the fireworks cheap.

  3. The company was the first international exporter with a large market share of about 60%

  1. Over reliance on cheap labor from Chinese workers who are often willing to work under poor working conditions.

  2. Competition from other upcoming companies, which has shrunk the profit margin.

  3. Lacks proper safety standards

OPPORTUNITIES

THREATS

  1. Penetrating the Canadian market as the government of Canada lifted a ban on Chinese fireworks in 2009.

  2. Beijing also lifted a fireworks ban that had curtailed the sale of fireworks in the region. This offers a massive market opportunity for Liuyang.

  3. The Chinese government also regulated the price of fireworks and this has stabilized prices due to low price competition.

  1. The increase in labor wages while the market continues to face increased entrance of new players in the market.

  2. Competition due to new technologies such as laser beams, which are capable of having different sound effects.