Free Essay Sample with SWOT Analysis for Eddie Stobart

Eddie Stobart managers can use the SWOT analysis to access the situation in the organization and plan for the company's areas of improvement. SWOT analysis is a technique that analyzes the Strengths(S), Weaknesses(W), Opportunities(O) and Threats(T). Below the review of Eddie Stobart's SWOT analysis.

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Strengths

Eddie Stobart has a brilliant performance in the market. It has created expertise which is competent enough to penetrate new markets (Monios 2012, June). As a result, the firm is making impressive progress in the logistics industry. Expanding the management has helped the company to acquire new streams of income by diversifying its business economic risks in different markets. Eddie Stobart has established strong, long-lasting relationships with its suppliers. As a result, the company has reliable raw material suppliers and thus overcomes supply chain challenges. Customer satisfaction is one thing Eddie Stobart has kept at the highest level by offering an excellent brand quality to potential customers.

Strong networks of the company mean Eddie Stobart can reach many customers in the potential markets. Moreso, it satisfies their needs. The company has fostered strong distribution networks over the years. Hence, it has maintained the market share. Eddie Stobart has automated activities in the supply chain. As a result, it has maintained consistency in providing quality products. Also, the firm has scaled up matching the matching the market demands. The logistics company is very innovative and comes up with new products in the industry very often.

Weaknesses

Eddie Stobart has a structure which is only compatible with its current business model. Therefore, the structure limits growth in the adjacent product section. The company not good at forecasting demand. Hence, it often misses opportunities in the market than its competitors. Also, the company has levels of days inventory. As a result, it has to raise capital for investing in the channel which affects the long-term growth. The company has poor marketing strategies for its products. Even though new products sell well in the market, the company fails to define precisely the positioning and unique selling proposition of products. Therefore, it is prone to attacks from competitors in this segment.

Eddie Stobart has invested heavily in technology. However, the company needs to invest more in technology considering the plan to expand into different geographies. Also, it should integrate the technologies across the globe to operate quickly. The current technology does not align with demand in the market and thus not at par with the company's vision. The company has a high attrition rate in the labor force. As a result, it spends a lot on employee training and development.

Opportunities

Adopting a new technology will help Eddie Stobart to maintain loyal customers in the market due to improved services. Moreso, the technology creates a chance to utilize differentiated price strategy in the market. As a result, Eddie Stobart can lure potential customers with value-oriented services. The company has established more online trading sites. Hence, more customers can reach the firm through online services. Therefore, the online platforms are leverage to understand their customers more and serve their needs better with big data analytics.

Another opportunity for Eddie Stobart is the low inflation rates in the economy. Low inflation rates a more stable market (Woodburn & Whiteing 2010). As a result, the firm can sell to customers at low prices which are attractive. Therefore, low inflation rates create a chance for Eddie Stobart to apply the cost-leadership strategy. Hence, Eddie Stobart will acquire a competitive advantage. Eddie Stobart has established ways to reduce transportation cost. Still, lower shipping prices help in cutting cost (Sumner 2008). Therefore, the company can boost income or pass advantages to customers and increase market share.

Threats

Eddie Stobart experiences intense competition in the industry. The market promises stable profitability to most companies. Consequently, new entrants are increasing. Also, the company faces challenges from its equals like DHL who are performing much in the industry. As a result, competition is growing rapidly and thus imposing a threat to the company's market share. Also, emerging companies pose a risk of imitating products and producing low-quality ones. As a result, the logistics company risks losing customer trust over their products.

Big competitors such as DHL have robust technology with well-integrated systems across the board. Therefore, a large number of customers prefer their online services which are quick and more efficient. As a result, Eddie Stobart risks losing customers to such companies with robust online platforms. Raw materials are increasing in the market. Hence, more companies and even the new entrants can acquire suppliers who are consistent in providing them with materials to facilitate their production. As a result, more products flow into the industry thus customers have a variety of them. Therefore, customers do not buy from Eddie Stobart consistently as they are likely to shift to other companies.

References

Monios, J. (2012, June). Retail logistics in the UK. In International Conference on Logistics & Sustainable Transport, Celje, Slovenia.

Sumner, C. (2008). Sources of finance: Eddie Stobart Ltd. Teaching Business & Economics, 12(2), 12.

Woodburn, A., & Whiteing, A. (2010). Transferring freight to 'greener'transport modes. 2010) Green Logistics: Improving the environmental sustainability of logistics, Kogan Page, 124-139.