¶ … weaknesses of Smith & White (S& W) include high cost due to old manufacturing plants located in high labor cost urban areas. Once market research is completed, and the reports show that the plants are in a high labor cost urban area, a team needs compiling in order to locate a more economical area for the plants to be located as well as determine the efficiency of current equipment, to determine whether new equipment needs to be purchased. Short-term outlook, the company would have to spend money to relocate and purchase new equipment. However, long-term this would prove to be an effective way to reduce cost in the problem areas. By building a new plant with new equipment, one decreases those chances of having machinery breaking down or becoming faulty. Market confusion between its professional and consumer tools also poses a problem. The marketing department needs to do an analysis to see what is currently being done to make distinctions between the products, and what improvements are needed in order to make their efforts more effective. How does one address the negative feelings on the part of its distributors stemming from a perceived abuse of their dominant market position? Develop an incentive program; determine a way to give distributors discounts or incentives for carrying company products. To deal with lack of presence in the cordless segment, one should do research on competitors and attempt to create a market savvy product based on the competitor's downfall.
The main weakness and problem for Makatume is low voltage. One should introduce ones own higher voltage into the market. Even though this would open the market to competitors, at least Makatume can set the standard instead of allowing another company to override them by producing a better product. Considering the strengths of Makatume the voltage shortage is the most pertinent issue. One has to be willing to take risks in order to invoke change & productivity. Makatume needs to set the pace and continue to raise the bar for quality.
