SWOT analysis of R and H Filter Company - Assignment Example

Strengths

• Sound financial records
• Marketing and advertising capabilities
• Strong position in the US market
• Variety of designs and styles of glass products that are appealing
• R&H Filter Company's experience
• Very high employee productivity and management
• High investment in research and development

Weaknesses

• High price (limited flexibility in pricing)
• Decreasing market share
• High-cost structure
• A long-term decline in gross margin
• Lack of customer services
• Poor acquisitions and investments
• Weak distribution channels

Opportunities

• Expansion to emerging economies
• Increase demand for scientific research
• increasing demand for education
• Acquisition of valuable companies
• Positive attitude towards green environment
• New emission standards

Threats

• Intense competition in glass products
• Fluctuating exchange rates
• The rapid change in technology
• 2013 tax increases
• Supply disruptions due to unstable political climate
• Saturated market in the US (developed economies)
• Changing needs and habits of consumers

Most important elements in the SWOT

R&H Filter Company provides its employees with an extensive range of benefits as well as a pay rate higher than other competitors. This ensures high employee motivation thereby increasing productivity. This is the main reason why there has been a rise in the profitability of R&H Filter Company for the past few years. The company also has strong marketing and advertising capabilities; it spends its advertising money more efficiently than its rivals thereby getting greater returns in terms of revenue and product awareness (Böhm, 58). Such strong marketing and advertising capabilities have provided the company with a competitive advantage in the market over its closest rival.

The market share of the company I likely to increase due to increased demand for glass products, necessitated by the rising need for scientific research as well as education. The company, therefore, should aim at increasing its productivity to meet that demand. This will help the R&H Filter Company to use the opportunity as a competitive advantage.

The R&H Filter Company mostly used waste glasses as raw materials; it recycles glass products.  The company has a positive attitude towards the green environment, which has offered it a positive public image. It has been seen as conserving and preserving the environment. Therefore, a new wave of stricter regulations regarding the emission of CO2 and carbon monoxide would positively affect the company.

The company should put the rapid changes in technology into use to develop high-quality and innovative products to be able to tackle the intense competition in glass products. Even though the company’s high investment in research and development leads to high revenue volumes, The R&H Filter Company still has a high-cost structure, the costs are driven by their generous employee compensation, benefits, and pension plans (Ferrell and Michael, 122).