Business Report Analysis and Recommendations: Digby Company 2027

This report provides a comprehensive analysis of the Digby company based on its 2027 annual report. It begins with an introduction outlining the report's objectives: to assess Digby's strengths and weaknesses in comparison to competitors, utilizing SWOT and Porter's Five Forces analyses. The SWOT analysis details the company's strengths (e.g., increased earnings, high consumer satisfaction), weaknesses (e.g., higher labor expenses, decreased fixed assets), opportunities (e.g., high market share), and threats (e.g., competitors' material support for substitutes). The Porter's Five Forces analysis evaluates market rivalry, the threat of substitutes and new entrants, and the bargaining power of buyers and suppliers. The report concludes with actionable recommendations, including cost reduction strategies, production unit increases for high-tech products, and sales margin improvements to meet break-even points. These recommendations aim to enhance Digby's market competitiveness and overall profitability. The report also includes a bibliography of relevant sources.

Running head: BUSINESS REPORT ANALYSIS AND RECOMMENDATIONS
Business Report Analysis and Recommendations
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1BUSINESS REPORT ANALYSIS AND RECOMMENDATIONS
Introduction
The following paper will discuss the current strength and weakness of the company
Digby compared to the other competitors according to the annual report of 2027. This report
will provide the SWOT and porters 5 force analysis as well with suitable recommendation for
further improvement.
SWOT analysis
Strength Weakness
Decreased liabilities
Increased earnings from stock
Zero emergency loan
High consumer satisfaction
Higher expenses for labour as per the industry
standard
Higher profit sharing than industry standard
Decreased fixed asset by $5000
Opportunity Threat
High market share can increase the profitability
Production potentiality is very near to the
existing production margin which indicates high
potentiality
Demand of high tech is 10% higher than low tech
where Digby has only one high tech product
Labour cost for low tech product is increasing
Porter’s 5 force analysis
Market rivalry:
Andrews ($34,416) and Chester ($53,823) has higher profit margin than Digby ($33,909).
Threat from substitutes:
The competitors have enough material support to provide substitute product to the consumers
Threat from new entrees:

2BUSINESS REPORT ANALYSIS AND RECOMMENDATIONS
Company like Baldwin is increasing their profit rate slowly. However, the threat from new
company is low
Bargaining power of Byers:
The number of competitors are too high considering the total number of potential Byers.
Therefore bargaining power is also high.
Bargaining power of suppliers:
Bargaining power of labour market is moderately high, that could effect the cost of low tech
or low budget product like Drum.
Recommendation for actionable market and competitiveness
 Digby has to reduce the promotional and labour cost by 15%, from the mean cost
from past 1 to 2 years for producing both high tech and low tech product while
increasing their profit margin by at least 5%. It will help to reach their Total
Actionable Market or TAM
 The cost of the high-tech product is still around 13400$ higher. Therefore, focusing
on cost leadership will be very helpful to minimise the cost effectively
 Digby has to increase their production unit within next 6 month of high tech product
to keep balance with increasing demand of the potential market which is at least 45%
higher than the low tech.
 Digby also has to increase the sales margin from 1534 units to 1650 to meet the
break-even port profitably.

3BUSINESS REPORT ANALYSIS AND RECOMMENDATIONS
Bibliography:
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strategy and owner-manager characteristics. Journal of small business and enterprise
development, 20(1), 8-27.
Madu, B. C. (2013). Vision: The relationship between a firm's strategy and business
model. Journal of behavioral studies in business, 6, 1.