QUEENSLAND LEISURE GOODS CASE STUDYQUESTION 1SWOT ANALYSISa) This is a tool that helps a business analyze and evaluate its strengths, weaknesses, opportunities, and threats.Strengths- These refer to the internal and external features of a business organization that are responsible for giving it a valuable advantage over its competitors, e.g. QLG already has a good number of loyal customers and its products are well known in the market. Having this as its strong features, QLG is capable of using them to improve its performance and increase its sales. Basically, these features can be used by QLG to gain competitive advantage against the upcoming businesses.Weaknesses- These are the environmental features of a business that are capable of causing a disadvantage to its operations when compared with its competitors e.g. outdated production methods. The business is still using the same production methods while the new businesses are using the new technology with new methods of production. These can be the issues that are causing its products to be of less quality than those of its competitors.Opportunities- Are the chances available in a business’s surrounding environment that can later become add advantage to the business operations, e.g. QLG has a chance to expand its markets share and segment a much as possible. By doing this, the business can increase its sales and performance which leads to increase in profits in the end.Threats- Are the characteristics of a business organization that can cause trouble or problems andchallenge to its success, e.g. the rival businesses that are entering the marketing and overtaking QLG’s market share. These threats can bring an end to QLG or cause extremely poor performance. Such a threat means sharing the market which means sharing customers. The chances QLG dropping its performance levels is very high.b) The business has a number of opportunities for change including:Opportunity to change its consumer demographic from selling only to middle class customers but concentrate on all possible consumers as well as other business that may need the products.
Opportunity to change its market share and market segment by increasing its market to more than 30km wide and selling the product in lump sum or wholesale.c) Queensland has the opportunity to develop:The product itself so that it can be able to produce better quality productIts production technology and methods to lower the high costs being incurredQUESTION 2The QLG opportunities for change and development listed above can only be achievable with thehelp of the business managers. However, the opportunities on change have to be prioritized for the business to be on going. When the business uses its chance to change its consumer demographic and the market share and segment, then it will definitely be motivated to device methods of developing the product and the production methods (Chew et al, 2008). Since the business managers are usually the people who make decisions, provide finances and other materials needed for any business operation, then they will certainly give the change and development idea support with an aim of making the business successful (Aljohani, 2015). However, the convincing will be required so that they can actually believe that the opportunity for change and development are worth giving a short. Some of the reasons that the managers can be given for them to support the operation include: giving them the facts about their employees losing jobs in case the business closed, QLG’s objectives, goals and aims, the responsibility of the business to the society, its customers and employees, the fact that they will also lose their jobs to name just but a few reasons.First of all, QLG should try to change its customer demography, market share, and segment with its current product. This will help know how effective their current production method is. However, that should not affect its chance to improve its production methods. Therefore, the business should put the change on the demography, market share and segment as a priority as a test of the production method and technology. The reason for implementing demography change first is to ensure that it has enough loyal customers to buy its products even in the future after they improve the production methods.
QUESTION 3The idea of changing the consumer demographic for QLG’s product can be tested by first of all trying to vary the prices even more than they currently are, so that the low class consumers can afford the products. This means that the business can have some products with high prices according to their quality, packaging etc. and others low to be able to accommodate both the highclass and low class earning consumers.The idea of increasing its market share and segment by selling more than 30km. QLG can sell even beyond the 30km. which means that it can reach even consumers in other cities and town which will increase its market share.The idea of developing its product will be tested by coming up with a product with a better quality and which has been produced using different production technology and compare it with its current product. If the new product is liked than its current product then the business should focus on producing the quality of the new product.QUESTION 4Risk assessment and cost benefit analysis for changing the consumer demographyThere is a risk for the business in case it tries to change its demography. According to Pinkse et al (2016), if the business is targeting all classes of consumers which in that case they will vary the product prices, they may lose their current customers who are the middle class. This is simplybecause the current consumers may think that the product’s quality has been interfered with and that’s why the prices are different. The probability of this risk occurring are low because when the production methods are improved, the product quality will certainly improve.The cost benefit analysis of the business will vary as well. If QLG loses a large number of its current consumers and gain few new consumers, then the business will have lost a lot of revenue but if it gains more new consumers and loses a few of its current consumers the revenue will be high. These two scenarios will occur if QLG decides to change its consumer demography as stated above. The chances for this risk happening are also moderate. This is because the change in demography indicates a 50% chance of success or failure.Risk assessment and cost benefit analysis for developing the production technology
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