SWOT analysis of MIWA International Corporation
Part 1- Description
Miwa International Corporation is founded in Japan as an international company working in the wholesale sector of the market. The company now is successful in occupying a Unique Position in Market, which is achieved with the help of its special product line include cosmetics, skin care products, and product health care. No other company or brand is offering the same special line in the market. However, the brands do exist within each product category. The most of its consumers for the company are Asians because they are more concerned about white complexion, and Miwa offers a range of whitening products. The paper is intended to conduct SWOT analysis of MIWA that includes strengths, weaknesses, opportunities and threats to the company (Gasparotti, 2009).
Part 2- Internal Analysis
Strengths
Loyal Customers
The success of the companies and businesses directly depends on the loyalty of their customers (Denoue & Saykiewicz, 2009; Ergin, Özdemir & Parıltı, 2011). Brand loyalty is the major strength of MIWA international as the majority of the customers are loyal that are mostly related to Asian Market. The major strategies and actions of the company to achieve brand loyalty include the following:
MIWA International Corporation gives close attention towards the feedback of the customers. The acceptance and response to the customers’ feedback is very important to make the customers loyal to the brand. It increases the satisfaction among the customers.
The second best strategy of MIWA International is facilitating the good service to the customers. Customer service quality means a lot for the loyalty of the customers. Various studies and field experts have found that the customer service creates the loyalty to the customers and profitability to the company (Ergin, Özdemir & Parıltı, 2011).
For the satisfaction of the customers, MIWA international offer holiday gift to them. The major goal of marketing is to make the customers satisfy addressing their needs and desires.
Products
The second major strength of the company is its products. The product is the major aspects of the business that is the direct bridge between the customers and the company. The products of MIWA international are considered as its strength because of various reasons. These are as follows:
The organic product demand is increasing, and the products have found as highly well-regarded in last few years. The use of organic products among the customers directly reflects that how they perceive the products. Hence, the MIWA International Corporation seized the opportunity and filled the need of the customers in the cosmetic industry.
Other than the nature of the products, its promotional techniques are also found as effective to make the products successful and popular in the market. MIWA International Corporation promotes its products in the holidays as mentioned above that it offers gifts with the products that make the customers to purchase.
The third factor behind why the product and offers of MIWA International in its strength is the consistency of the quality. The customers find the same quality every time whenever they purchase the products of MIWA International Corporation.
Product Culture
The product culture within the organization is the third major strength of MIWA International Corporation. The product culture means to bring the product to the core aspects of the business. It helps the company to give more focused and close attention to the product. The product culture brings every individual within the organization to become an advocate of whatever is developing and building within the company.
The positive attitude of the management towards the employees and everyone else within the company gives the company strength to develop the efficient and successful product. MIWA International supports the people to let them their own part in the product.
The innovative product culture is directly linked to the two factors include patience and passion. The passion of the company in the context of its business purpose, however, patience is required to take the time to develop an effective, innovative and ideal product for the customers (Maxcer, 2014).
The culture is well organized, and the responsibilities are well informed to the employees within the company. Everyone understands and accepts its responsibility in the product development, design, marketing and other aspects as well.
Weaknesses
Marketing
The marketing of the company is not efficient, and it's biggest weakness. Marketing is very important in today’s competitive business environment as various companies in different markets have failed because of the unsuccessful marketing plans and strategies. The reasons behind weak marketing of MIWA International include the following:
The company focuses less on international expansion in various potential markets. The company being an international firm can enter in various markets of the world, where, the demand for organic cosmetic products is high.
The next major reason is the lack of proper advertisement. The company only focuses on simple promotions such as holiday gifts etc. However, it is needed to properly advertise its product using different mediums to approach an extended market of customers.
The company has no professional manager or person in the organization for the marketing techniques. The professional person for marketing is very important to deal with all marketing aspects mainly to develop a marketing plan for product, pricing, place and promotions in line with the market demands and needs (Donckers, 2016).
Finance
There are various challenges faced by the growing companies. Lack of finance and finance management are the major weaknesses of MIWA International Corporation. The lack of finance causes various serious issues. Some of these major challenges include the following:
Because of the lack of finance, the company is failed to attract the talented people from the market. The most talented employees demand the highest salaries that are not possible for the companies to adjust to the lack of financial resources.
The lack of talent in the company is directly linked with the fewer bonuses to their performance. The company is unable to arrange enough funds to give bonuses to the employees to satisfy them.
Another major problem caused by the lack of finance is the limited budget for advertising. It is the major reason why company avoids hiring a marketing person and developing proper advertising.
Environment
The workplace environment for the employees is also not satisfactory. The environment provided to the employees directly influence their satisfactions. However, MIWA international is failed to satisfy its employees. The reasons include the following:
The office of the company is present in the warehouse. No separate office is being provided to the employees and management where they can work in the better environment.
As the office is in the warehouse, therefore, the internet works slowly. However, the internet connections are very important for the efficient work operations of the company in the international market.
The employees are not provided with the comfort zone such as tea room and other facilities for their comfort. It demotivates the employees to work for longer in MIWA International Corporation.
Part 3- External Analysis
Opportunities
Advertising
The company has the potential opportunity to improve its performance and profitability with the help of advertising. The advertising can be done in various ways to promote the products of the company. Some of the major opportunities include the following:
The sales promotion is one of the effective techniques to attract new target customers, retailers, and wholesalers to buy the products of the companies; they are not interested in or familiar with. The company can use this strategy either for its new products, for inventories of previous products, etc.
The clearance sales help the company to make the customers buy the previous and old products of the company. The company can provide offers and discounts on the products. It will help the company to increase its sales and to attract new customers as well as to increase the loyalty of the existing customers.
The rise in the demand for organic and natural products will help the company to make its advertising successful. The rise in the demand and the innovation in the organic products is the opportunity for the company for its big and bright future.
Expansion
The company also has the potential opportunity of expansion in various markets of the world. The expansion is very important for the growth of the business as it increases the chances to target extended customers in the market.
MIWA International can expand in the potential markets of the world such as UK and USA, the largest markets of the world for different industries.
The company to expand in the international market can develop partnerships with the stores in the new markets that will also address the financial issues of the company.
The online channel is another important aspect of entering the new markets without physical presence. The company can deliver the products to the company with the help of shipments.
Partnership
The partnership is another opportunity to MIWA international that will help to solve the financial issues. The opportunity includes the following:
The company can cooperate with the physical stores of organic and natural products. It will help the company to increase its visibility in the market.
Apart from physical stores, the company can also cooperate with online stores of cosmetic products. The online presence is very important in the digital world.
Using partnerships with the companies in different markets, the company can expand its warehouse in many new markets and countries of the world.
Threats
Competition
The competition is growing in the market because of the demand for the organic products. The major factors and forces of competition include the following:
The high competition can make the company face the war of prices. If the customers would be available with the low prices for the organic products, then they would buy the products of MIWA international.
The trend of globalization and internationalization is resulting in the high global market competition. All the companies are now looking for the opportunity of global expansion that is the threat to MIWA international.
The demands of the market are changing, and the customers are more involved in looking for the high quality products. The makeup market is very diverse and extended, and various other products and alternatives are available to the customers.
Cost
The increase in the cost of the production is one of the major threats to the company. The major factors can be considered as significant in the increase in the cost. Few of these factors include the following:
As the talent in the market has high demand, therefore, there are potential threats of increase in the labor cost of the company. The wages and salaries can be demanded to increase for the efficient performance of the employees.
The cost of raw material and production can be increased because of the competitive force from the suppliers of the company. The demand for organic products can impact the value and demand of suppliers of natural ingredients and raw material for manufacturing of organic cosmetic products.
The shipping cost can also be increased that will directly impact on the overall cost of the company. The high cost will become the major disadvantage for the company (Ridler & Hishamunda, 2001).
Economic downfall
The biggest issues and threat for all the international companies is the economic crisis and issues. The market conditions and demand change very suddenly in the downfall of the economy.
The economic conditions directly impact on the exchange rate that devalues the currency of the country. The fluctuations in the foreign exchange rate directly impact on the profitability of the company.
Part 4- Action Steps
Based on the SWOT analysis of the company, MIWA International needs to take some actions to reduce its weakness and threats and to get benefit from its strengths and opportunities. For this purpose, the company needs the following major actions:
MIWA international has to develop partnerships with the retailers and wholesalers in the new markets. The market recommended include UK and USA that are the major markets for businesses in the world. For a partnership, the company is needed to contact with the retailers and wholesalers in these markets to provide its product to them to supply in these new markets. The partnership with local retailers of these markets will help the company to understand the needs of the customers.
The company has to increase its presence on an online media such as social media and websites to advertise its product. The advertisement will help the company to increase the loyalty of customers and to convert new customers. The online advertising is less costly as compared to traditional media advertising such as Television and Print media.
For the efficient promotion and advertising and to make the product align with the demand of the customers, the company has to appoint a special marketing person.
References
Denoue, M., & Saykiewicz, J. N. (2009). Brand Loyalty as a Tool of Competitive Advantage. Master of Business Administration, 17(1), 36-45.
Donckers, R. (2016). The Reasons Why Every Business needs A real Marketing Specialist. Retrieved May 10, 2016, from http://www.marketing-specialist.net/
Ergin, E. A., Özdemir, H., & Parıltı, N. (2011). Brand Loyalty in the cosmetics industry: a field study on Turkish women’s brand loyalty among cosmetics products. Journal of Business & Economics Research (JBER),3(5).
Gasparotti, C. (2009). The internal and external environment analysis of Romanian naval industry with SWOT model. Management, 4(3), 97-110.
Maxcer, C. (2014). Apple's Story: Passion, Patience, and Pressure. Retrieved May 10, 2016, from http://www.technewsworld.com/story/80359.html
Ridler, N. B., & Hishamunda, N. (2001). Promotion of sustainable commercial aquaculture in sub-Saharan Africa: Policy framework (No. 408). Food & Agriculture Org.
