Company analysis
SWOT analysis has been conducted in order to provide a better understanding of the
company operations. The core strength of Niteo is the passion for innovation and dedication
to continuous improvement. The main weakness is a relatively new brand. As a developing
company, Niteo has long-term growth focus. However, the biggest threat Niteo faces is the
reactive actions of the main competitors.
Strengths Weaknesses
• The continuing research and • Little market presence or reputation
innovation in the interest of beauty as a relatively new brand.
which assures that the Niteo offers the
best to their consumers. • Costs spiralling out of control due to
price fluctuation from raw material
• Niteo’s advertising strategy plays a supplier.
major part to its growth. Through
adapting to the culture of the target • Being vulnerable to vital staff being
market, we provide products for sick, leaving.
particular customer.
• Relatively high market entering price.
• Skimming price strategy during the
• Cash flow is unreliable in the early
product introduction and growth
stages.
stages will build a high-quality image
for the new product as well as • Limited budget.
guarantee effective market
segmentation. • The recruitment process of the new
employees may be time consuming,
• Applied penetration pricing strategy as well as costly.
during the maturity and decline
stages. Selling price falls down as the
competition grows and attracts more
customer attention.
• Due to the economic recession, the
pool of skilled, but unemployed
labour has enlarged, providing us a
wider choice of specialists.
• Experienced, qualified, motivated and
committed management and staff
provide an excellent customer service.
• We are environmentally friendly.
• Effective direct marketing, and a
successful usage of four online
marketing tools, in particular.
Opportunities Threats
• Growth of the internet leading to an • Major competitor planning to
increase in the number of consumers integrate vertically and sell direct to
willing to buy online. the consumer.
• New target customer markets to • Vulnerability to reactive attack by
expand within. major competitors.
• Possible slow adoption to the new • Increase in taxation or other
technologies of the main competitors. government policy aspect.
• Geographical expansion to overseas.
• Possible misunderstanding and
• Intention of local government to confusion raised by the similarity of
encourage local businesses with work the company’s main product’s name
where possible. and the brand perfume of
Dolce&Gabana “One”.
• Possible better supplier deals.
Skills, assets & liabilities
Company Analysis includes the deep analysis of the sustainability of the company. An
internal analysis provides a resource-based view.
Skills section tells about our distinctive competencies, which are:
Adaptability, accessibility of the product.
Large variety of the product specification, which can meet every customer’s
requirements.
Medium-size, relatively young, but already experienced company with a strong ambition
to expand the product, production line and market.
Relatively innovative product launch.
The target market is 18-25-year-old girls and women.
Assets part describes our strengths:
Strong desire to analyse the current performance and an intention to develop the
operating process continuously.
Well-developed Marketing strategy in order to attract the main customer, as well as
build the brand value.
Liabilities we have are:
Experienced and highly motivated management and staff.
Appropriate knowledge, work and life experience, as well the strong commitment to
the success of our customers.
Excellent customer service along with the passion for innovation and quality.
5-10 years of successful operating in the UK market.
Rapidly developing brand image and constantly strengthening brand value.
Established and active plants, placed offices.
References:
(p.153; 547) Philip Kotler, Gary Armstrong, Veronica Wong, John
Saunders; 2008; Principles of Marketing; Essex; Pearson
Education Limited.
(p.237-325) Svend Hollensen; 2010; Marketing Management: A
Relationship Approach; 2nd Edition; Essex; Pearson Education
Limited.
L’oreal, 2008. SWOT Analysis L’Oreal. (09.12.2010)
Available at: [Link] Accessed
09/12/2010.
