These competitors are located in various parts of the country and with others strategically located in one stop shops where they can be easily accessed by their clients.
Advantages of business location to that of the competitors
G2V Trading Company plans to locate most of its branches and offices in the major cities and towns in Brazil giving it an advent benefit as its products and services can be easily accessed by its current customers and other potential clients. With time, the business also plans to expand its operations in other parts of the country. This is with the aim of capturing a larger market share and eventually controlling a significant portion of the market.
Size of the competitors
The size of the competitors in the market ranges from large multi-national companies such as Hp Cartridges to small and medium enterprises in the same market. There being only one large corporation in the market, coupled with increased demands experienced in the current times, there are high chances of growth of the business.
Advantages of the firm's size to that of the competitors
The firm being a startup company, it has great potential to grow and expand its business because it has not exhausted its marketing and promotion strategies. The stiff competition in the market will also ensures that firm strives to improve their products and services and as a result expand its business.
Disadvantages of the competitor’s size
The major demerit of the opponent’s size is that being a new player in the market, the firm will find it difficult to win over the acceptance of the already existing customers who have identified with the already existent firms in the industry.
Comparison of the firm’s products to those of the competitors
Most of the competitors in the industry deal in more than one line of making it difficult for them to identify their specific target market.
G2V trading on the other hand stocks three types of cartridges that is more specific to most of the clients and printing firms in Brazil as compared to other firms that do not have a target market. This will make it easier for the firm to market its products and provide better quality services to its clients. This gives the company an added competitive advantage as it can effectively serve its consumer base.
The firm also provides these products at a cheaper and affordable rate as compared to that of the competitors. This will ensure that the business retains its current customers and attract new potential clients as well.
The online consumer service platform that has been developed by the firm which makes it easy for customers to shop online at their convenience and also inquire about the enterprise's products and services will ensure that the client's wants are fully satisfied. This platform enables the products purchased by the consumers to be delivered to them at their locations without the hustle of physically going to collect the products by themselves. This platform also ensures that the clients give the company feedback on their shopping experience and by that the enterprise can effectively improve their service delivery as well as the products they offer in the market.
This chapter will look into the strategic analysis of the business highlighting its SWOT and PESTLE Analysis.
Strengths of the Business
• For a start, the company trades in three varieties of printer cartridges with different types of colors. This acts as a significant advantage for the firm because most of the consumers use these specific types of cartridge products. As such, the business will adequately satisfy adequately satisfy most of the consumer needs in its area of operations. This goes a long way in ensuring that the business attracts and retains potential customers.
• The firm has developed an online customer service platform where clients can efficiently shop online at their convenience and also inquire about the company’s products and services.
• The business delivers its products to its customers after purchase, and this acts as an after sale service that goes a long way in ensuring that it attracts potential clients and retains its already existing customers.
Weaknesses of the Business
• The business being a startup faces some challenges such as marketing its products to potential customers who mostly identify themselves with companies that had long established themselves in the market.
• The business might find it difficult to gain acceptance and extreme popularity in the already competitive market.
Opportunities for the Business
• Being a startup, the business has a high potential for growth and expansion in the industry
• The business has a plan to expand its operations by dealing in the importation of additional products from China e.g. printers. This will give the firm the opportunity to expand its services and consequently increase its market share which will in turn translate to increased revenue.
Threats of the Business
• The main threat faced by the business is increased competition from emerging entrepreneurs who have already established themselves in the market.
• The economy might experience economic inflation which might lead to extra expenses in the operations of the business.
• Adverse fluctuations in the country’s currency exchange rate pose a significant challenge as it will affect the company’s revenue negatively because they import their products.
The political environment of the country is likely to affect the operation of the business. I.e; The government might impose higher taxes on imports thereby affecting the revenues of the discussions as the firm deals in imports.
The economic environment is relatively stable at the moment with the economy doing pretty well with the local currency exchange rate pretty steady. This ensures that the company’s revenue experience stability in their growth.
The company is providing better quality products at affordable rates and as such consumer preference is changing to products of such quality. This, therefore, gives the company an added advantage as it enjoys this change in consumer preference.
The market is experiencing the use of technology in the sale and promotion of their products. G2V Trading has also developed an online customer service plan which ensures that it takes advantage of these technological changes in the market.
G2V trading ensures that its operations are in line with the laws and regulation of China from where it imports its products. This ensures that it has a real and lasting relationship with the home country. To do so, G2V has to stay alerted and informed about recent implemented laws and policies so as not to risk violating them.
G2V Trading has ensured that its operations do not affect the environment negatively and thus it strives to make sure that it supplies environmentally friendly products and that its activities do not go against environmental laws.
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Essay Sample on Location of Potential Competitors. (2017, Nov 09). Retrieved from https://speedypaper.com/essays/2-location-of-potential-competitors
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