Introduction
Credible Parts is an automotive company that designs, assembles and sells motor vehicle parts in New York. The company prides itself on producing durable car parts that have seen the business prosper since inception. The company also sells some of its designs to its partners in the motor vehicle industry. Also, Credible parts motors rely on its dealership network to help in enhancing sells.Furthermore,the company has planned to open more branches in other states of the united states so as to benefit from the large market that has been created by the working class population in the US that considers a motor vehicle to be a basic necessity for mobility.Additionally,credible parts industry manufactures unique designs that are custom made to suit the needs of the youths who fancies flush cars and celebrity parts. Some of the products are fitted with the latest technology like the wifi and the blue tooth so as to make the use of its products more appealing and enjoyable to the youthful generation.
Credible Parts Motors business strategy
SWOT analysis of Credible Parts Motors
Strength
An increasing demand for the environmentally friendly vehicles has prompted Credible Parts motors to embrace technologies that produce clean products that can be recycled and those that do not rely entirely on the use of petroleum.Recently, Credible Parts Motors established a new production line that is will be producing electric cars. This strategy is in line with the requirements by the US authorities that provide incentives to firms that are committed to the production of green products. Some of the incentives like tax waivers from the government due to the commitment to the production of the environmentally friendly products have seen the reduction in the cost of production thus making the business more profitable (Snelling,2012).
Credeible Parts Motors has also embarked on a strategy that has seen the integration of modern technology in its parts. Since the world is a global village, most of the middle class who are the majority of automotive products fancy buying products that will keep them connected with the friends and relatives even while they are travelling. The firm has been able to increase its sales due to fitting its products with internet, and Bluetooth.
In addition, Credible Parts Motors prides for having a strong financial backing due to its partnership with the leading financial institution in the US. The availability of the financing has enabled the company to invest in the new designs and technology that is appealing to the customers.
Unlike other companies who sell their products directly to the consumers, Credible Parts Motors have developed a wider dealership network that it is using not only to sell but also to market its products.
Weaknesses
Some of the Products are too expensive owing to the fact that they are produced using the latest designs and fitted with the new technologies like internet and wifi.This has made some consumers to shy away from these products since the prices are way ahead of their financial reach (Snelling,2012). However, Credible Parts Motors is working on a strategy that will see the company use locally available technology and raw materials so as to cut on the cost of production that has seen an increase in the prices of some of its products.
Since the firm is a new entrant in the automotive industry, some of its products are not known among the consumers unlike other established organizations like Toyota which have to develop an extensive business empire over a long period of time. It is imperative for Credible Parts motors to invest heavily in marketing so as to make the consumers aware of its products. Furthermore; the longevity of some of the new designs is yet to be proven. It is important for the company to commit a lot of funds on research and innovation so as to ensure that any product that comes to the market is durable and gives the customers the value for his money.
Opportunities
The company is planning to expand its operations to other states in the US due to its strong financial might. Also, the durability of its products has seen many consumers prefer Credible Parts Motors Products. Also; the increased demand for the environmentally friendly products will see the increase in the sales of the firm’s products. The company has increased the production of its products so as cope up with the high demand for green products. Through these, the company has benefited from the economies of scale thus making the business more competitive. Furthermore, the production of the new custom made designs that meets the needs of the youthful generation has seen the increase in the sales (Thompson et al., 2015).
Threats
The company faces stiff competition from other well-established companies like the General motors and Toyota. This is because some of these firms have been in existence for many years and many customers are aware of the durability of their products. It is imperative for Credible Parts Motors to invest in research and marketing so as to make consumers aware of the quality of its products.
I have learned that for a new business to succeed and compete favorably in the market, it is imperative for the business owner to identify the needs of the market. According to Thompson et al. (2015), some of these needs can be used as the strength of the business since the new organization will be committed to the production of the unique services and products that are equal to none in the market. Also, it is important for one to put into consideration the weaknesses and threats that might bedevil the success of the business. Some of the weaknesses can be used to strengthen the business through the development of strategies that will see an improvement of the underlying faults.
I will continue with the business venture since it is providing unique products that are appealing to the customers thus enhancing profitability. Also, the compliance with the green technology products has seen the reduction in the cost of production due to tax waivers. This strategy is of great significance in making Credible Parts more affordable a fact that will see most of the customers buy its products.
References
Snelling, J. (2012). The influence of the SWOT analysis on organizational development strategic planning. New York: GRIN Verlag
Thompson,A.,Peteraf,M.,Gamble,J., and Sttickland,A. (2015). Crafting & executing strategy: The quest for competitive advantage: concepts and cases.20th ed.Boston: McGrow-Hill Irwin.
