Prospects of Launching a New Product: Pipes From Polyone

¶ … Corporation-SWOT Analysis

The potential success of a company especially in the introduction of a new product can be evaluated using SWOT strategic tool. In any analysis, the investor often seeks to understand the true status of the organization by identifying the favorable and unfavorable conditions influence its success prospects in the industry (Jones, 2013). The first item of assessment under this is the strengths of the organization. Here, all those positive endowments that an organization has are described and linked to the success of the organization. For instance, PolyOne Corporation may use its existing strength of strong market leadership to influence the performance of the larger plastic pipes for plumbing that will be introduced. The analysis of the weaknesses and opportunities at PolyOne Corporation are also considered here because they influence investor confidence and its competitive advantage. Finally, the analysis deals with the threats that the company will face as it ventures into this new frontier because many of its clients and even other plays may not take it positively when it will be introduced. SWOT analysis is a mandatory assessment tool that is useful at all times in the management of any organization.

Strengths

PolyOne Corporation thrives on the strength that it has an assortment of highly skilled workers. From its great capacity in the industry, most of the skilled workers available chose to work here due to the vast exposure that comes with it and the good pay. The company also has the advantage of large-scale production. Due to this, it can have economies of scale related to it. Another strength that the company has is related to the brand name of its products. Over time, the corporation has been able to build a formidable brand within itself. This came from the long-term and steady production of high-quality products and offering services that are of unrivaled quality. This has made the organization stand tall among the many competitors. The rivalry in the industry has been reduced and managed well under the presence of this regime.

Weakness

Just like any other organization, PolyOne Corporation has its share of weaknesses. One weakness that the corporation has its inability to manage the international frontiers well. The company has not managed to set up highly competitive branches on the international stage that can make it comfortably wage a sufficient competition against the local companies in those countries that produce the same products. Besides, the company has not set up a good reward system in its human resource management agenda. From its employee behavior, it is clear that they are somehow dissatisfied. Although the company offers a good pay package to its employees, they still make to quit the company. The labor turnover at this company has been on then rises. One of the weaknesses on this includes poor communication between the managers and the employees. There seems to be a cold relationship between the management and the employees of late. This has seen the employees seem to be in a unified agreement to leave the organization on a frequent basis. The numbers of people who have since left the corporation are large enough to point out to an impending labor crisis.

Opportunities

The opportunities that the corporation has are related to the potentially growing market and demand for the plastic products in the new world of industrialization. This poses good fortunes for the company in future. Given this case, it is likely that the company will make more profits in future from the likely increased sales to be witnessed. The other opportunities that lie waiting for grabbing by the company include the possibility of conducting a merger with the smaller companies in the same industry (Garcia, 2014). Given the fact that the other smaller companies have little capital stock, they are easily likely to accept a merger with PolyOne Corporation. The merger will bring some gains to the company and giving the smaller companies a lifeline too. One advantage that PolyOne Corporation will make is that it will get rid of competition that the many small companies within the industry would have caused. From this perspective, PolyOne's threat comes from the many small yet unpredictable companies. The option is to have the company operate with the small ones under a merger system. The level of control over the market situation is easier under a merger (Jones, 2013).

Threats

PolyOne Corporation faces a number of threats in this industry. The first threat is on the issue of competitors. There are a number of companies within the same industry. The challenges that this pose is the inability to make a meaningful amount of sales. The threat is now getting more real with the emergence of more companies who have arisen to invest in the same industry. The company also faces the threat of possible substitutes from other players in the industry. These substitutes are likely to reduce its market share of its new piping product. The options that are arising from this threat include ensuring that its product is of high quality and reasonably priced.