Mec Resources Limited [SWOT Analysis]
Added on 2020-10-22
11 Pages2980 Words327 Views
Mountain Equipment Co-Op
TABLE OF CONTENTS1. INTRODUCTION.......................................................................................................................12. VALUE PROPOSITION.............................................................................................................13. SWOT ANALYSIS ....................................................................................................................24. TARGET MARKET AND POSITIONING ...............................................................................4CONCLUSION................................................................................................................................6REFERENCES................................................................................................................................7
1. INTRODUCTIONMountain Equipment Co-op (MEC) is a Canadian consumers' cooperation or association.It belongs to outdoor equipment industry. It is a non profit making cooperation that enjoys texexemptions and other privileges. The organisation sells the campaigning gear, travellingequipments, sporting goods and exclusive clothing to its members who possess the lifetimemembership of this cooperation. Background : The company was founded in Vancouver, British Columbia in the year1971. Its headquarter is in Vancouver. It has 23 stores across Canada. It has more than 4 millionmembers in Canada and from around the world. It has a Corporate & Group Sales store forserving large orders. Its members largely comprises military, Royal Canadian Mounted Police,search and rescue agencies. It is currently controlled by nine board of directors which are electedby the members. The cooperation has currently rebranded itself and changed their logo in theform of MEC in bold letters. Mission : “To provide reliable gear at the reasonable cost”. To help people to enjoy thebenefits of wildness-oriented recreation. Vision : To serve the needs of its members. It manufactures products with a vision thatstates “ Our Products are built with purpose, people and planet in mind”.Values: It focuses on cooperative values that is helping members of the cooperation. Ithas principles that it strictly follows; democracy, open memberships for people, education,training and development of members, fulfilling responsibility in utmost faith towards society. The present report is going to discuss its value proposition and how this proposition helpsin connecting the relationship of price to the value of product, SWOT analysis for assessing innerstrengths and weaknesses of the cooperation. Further, the report will include an analysis ofcooperation's targetting and positioning effectiveness. 2. VALUE PROPOSITIONThe cooperation offers wide range of products to its members such as clothing, rentalgears, sporting equipments for travellers, climbers, bikes etc. It started selling MEC brandedbikes in 2009 with around 58 models through its seven stores in Vancouver. Value proposition is a marketing statement of an organisation that sums-up the reasonsthat why people should purchase its products and services instead of its competitors products orhow its products will solve problem of customers better than its rivals (Tanner& Raymond,1
2015). In other words, it's a promise made by a company to its target audience regarding thevalue and worth of its goods and services. The value statement of the MEC summarises that itprovides good and services at the most reasonable prices along with maintaining sustainability. Itdelivers services with minimal effects on the environment. It statement shows the added benefitsof its products in terms of health, environment sustainability. Also, the bikes are highly attractivein its designs at the most competitive price that provides added value to the customers andmembers. Value proposition very effectively connects the relationships' product to the price, acustomer pays for attaining it. Customers perceives value of a product in various ways such asproduct's features, design, price, quality of product, added benefits etc. MEC provides value toits customers by offering the highly stylish and pretty bikes at the most affordable prices. Itoperates on the fundamental fact that customers prefers products with innovative features at lowprices (Ruiz-Pava & Forero-Pineda,(2018). A customer or member of MEC would not purchasethe bikes if it does not provide any additional benefits when compared to the competitors'products. Gears, wheels, seats, shifters are some aspects that the company have used in its valueproposition statement for telling its customers that they employ the best quality inputs in itsproducts. A member of cooperation would consider these aspects while purchasing the productof the brand as these features adds to the worth and value of price they are paying for theproducts (Morse & et.al., 2016). 3. SWOT ANALYSIS SWOT analysis is a way of assessing internal strengths and weaknesses of the company.It also identifies threats and opportunities for an organisation that could affect the firm in thefuture (Phadermrod, Crowder & Wills, 2019). A SWOT analysis of MEC is given below:Strengths:Superior quality products at low pricesWide range of product lineCo-operative structureEco-friendly friendly products(Mountain Equipment Co-Op,Competitive intelligence, 2019).Good brand imageWeaknesses:Products and services are not highlyindividualizedTransparency issues in operations.2
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