Wednesday, September 11, 2019

Proper oils, proposals to improve in all the segments of their company Essay

Proper oils, proposals to improve in all the segments of their company - Essay Example Key Words Biodiesel, Cooking oil. Introduction A SWOT analysis of the company reveals crucial points regarding the company’s market position. The following is the detailed SWOT analysis. Strengths The company has increased in size which means stronger bargaining power over supplies. The company has employed a strong marketing campaign. The company has a motivated team that comprise of 6 people. The team provides reliable and professional service to the company. The company has also adopted a new database system that will be used to manage customer data. The company has also set to increase awareness through redesigning the company with brand and more involvement in the social media. This will create recognition for the company and its products (Kerin 2012).The company has also made liaison with a local company. This will facilitate exchange of ideas between the two companies. The company has set to increase the fleet of vehicles and hence improve delivery of raw materials and products to the market. Opportunities The world consumption of biodiesel is growing and hence this presents a perfect investment opportunity. According to a world report, this growth has been driven by government mandates, tax incentives and the need for energy independence (Fredrick 2012). Cooking oil consumption is also high. The new database system is set to significantly increase the number of customers. Redesigning and branding is set to win back old customers and improve services. The company is relatively new in the market hence it still have potential for growth as it is yet to maximize production. The company can be able to increase productivity through use of new vehicles. The company has the potential to grow through making acquisitions. Weaknesses The company has placed more focus on production of cooking oil at the expense of biodiesel. If the cooking oil products does not bring in the expected revenue the company may face financial difficulties. Brand failure is also a potential weakness for the company. For example, biodiesel produced by the company does not attract a profitable margin. Increase in price of the raw material is also a major challenge facing the company. The company is currently spending a lot on caterers for oil. Loss of customers is also a weakness for the company. There is lack of a reward system. This may make customers feel less valued (Subramanian & Sanjoy 2003). Security is also a major challenge. Threats Competition from other companies has been identified as a major threat facing the company. The local supply of biodiesel in the European market has tremendously grown. The industry is already suffering from overproduction (Thurmond 2008). There is lack of adequate finances to expand production and carry out promotions. The market for cooking fat is saturated by other brands from rival companies. Low margins from biodiesel sales are also a major threat facing the company. Production is also limited to the available used coo king oil that can be collected. A series of failed advertising attempts has also been a major threat. The company’s current situation may not be termed as severe. However, certain issues are eminent from the above analysis which may negatively affect the performance of the company. Key among these issues is the lack of a proper advertising mechanism that could see the company gain more customers. There is little communication between the customers and the company. This may not be effective in retaining customers and creating loyalty. The company is

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