SWOT Analysis for Botflex - Essay Example

The idea consists of an effective strategy that will help in luring the local people to appreciate this type of company in the industry (Hill et al, 2012).
2. Has effective employee management: The business idea comprises proper strategies that will offer a healthy environment for the relation with the employees. In this case, the action of the employees is intrinsic to the success of the plan since the type of business idea involves a one-on-one conversation with the customers.
3. Fixed prices for renting: considering the state of the industry, owning and renting a car, the business idea is considered strong since the involved customers are made aware of the prices. The prices are fixed since there are fewer external influences on the prices such as weather.

Weaknesses
1. High product pricing: Botflex plans to offer high-quality services to the boat owners and the tenants thereby leading to high product pricing. Because of the need for offsetting the high production cost associated, the business finds it difficult to charge low prices. This acts as a weakness of the company since most of the potential customers are medium-income earners.

2. Negative publicity: most of the local people believe that agencies connecting people with boat owners normally charge more as compared to when approaching the owners directly.

Opportunities
1. Chance for entry into a new market: Few corporations are dealing in the same products thereby presenting an opportunity for entry into a new market. The company can establish its critical operation in other new areas because of the higher economies of scale associated with venturing.

2. Collaboration with other companies dealing in the same products: Many companies recognize the good reputation held by a company, successful in making people rent ships. This means that there are chances for the company to reduce the associated costs by collaborating with other recognizable companies.
3. Growing number of tourists: The number of tourists vising the region increases daily. This is an adequate reason for establishing the company in the area.

Threats

1. Escalating prices of boats: The escalating prices bears chances for inefficiencies in the production process of the company considering that the prices of raw material for making boats are on the rise. 1. Rising competition from indigenous boat owners: The high-quality services to be offered by the company subject it to strong competition from the local boat owners. The local boatowners can offer their services at low prices consequently reducing the number of customers expected (Boudreau, 2010, 89).

2. Target segmentation
To make the market strategies of the company cost-effective, there is a need for breaking the market into segments.
Demographics: The Company targets families and tourists who are on holiday because they are the ones who have higher chances of renting the ships. It mainly targets people with fun, safe, and time for going on rides.

Psychographic: The Company targets mainly two groups of people based on their preferences. One of the groups is the urban dwellers who usually consider boat riding as trendy. The other group is the working class people who usually prefer holding most of their meetings on the boat because of the pacification of the place (Boudreau, 2010, 89).
Beliefs and values: The Company targets religious individuals, who usually associate with holding their prayers far from the everyday local people’s activity. These religious individuals normally consider taking a boat ride to the sea.

Geography: The Company targets people far from the sea, who normally consider boat riding as an adventure to them. This is indifferent to the local dwellers who normally have access to the sea and thereby do not see its value.

Benefits and attractiveness
The company plans to have effective employee management through personal interrelation with the top officers. The business idea comprises proper strategies that will offer a healthy environment for the relation with the employees. In this case, the action of the employees is intrinsic to the success of the plan since the type of business idea involves a one-on-one conversation with the customers.

The industry also presents a fan environment of fixed prices for renting: considering the state of the industry, owning and renting a car, the business idea is considered strong since the involved customers are made aware of the prices. The prices are fixed since there are fewer external influences on the prices such as weather. Read More