NEECHIE GEAR: PIVOTING IN AN ABORIGINAL START-UP Case Solution
2.1 SWOT ANALYSIS
The first and the foremost strength for Neechie Gear Company is the presence of the world class entrepreneur who gained knowledge from the understanding of his own life. The company because of the brilliant efforts of the leader achieved a number of awards on his operations. Due to the bright success of the company, the customers of the business are very loyal for its products. The company has the strong brand in the competitive industry which is also its key to success. The company has the strong retail business. Above all, Mr. Netmaker is working to improve the lives of the First Nations youth by taking them into sports.
The biggest weakness in the current scenario is the lack of aboriginal partner which could significantly help Mr. Net maker in focusing on the other important decision regarding the growth of the company. Moreover, the aboriginal people that are available are either lacking the business degrees or they are hired quickly by the government by paying them premium salary. The overall situation leads to the weak sales and the marketing capabilities of the business. The apparel industry does not have much to offer as distinct element which can provide a competitive edge in the industry. Another weakness of the company is the lack of the capital with which it can achieve additionally.
There are significant opportunities for the business, the first and the foremost is the global expansion of the business which can add significant revenues. Moreover, the company can earn with the help of promotion of its products with the help of the social Medias like Facebook, Twitter etc. The company can conduct a friendly match in the country by taking the TV actors in a team and promote the products actively and many more.
The primary threats for this business are the politics and economies of the country.
2.2 PORTER FIVE FORCE MODEL
2.2.1 Bargaining Power of Buyer
It is the buyer who actually drives the market to a certain extent which is also evident from the retailers keeping the prices relatively down. The prominent retailers try to attract more buyers by providing them more discount and services to get the market shares. With only a handful of retail players, the switching cost of the buyer is negligible and is confined to the change in buyerâ€™s loyalty which overall concludes the fact that the bargaining power of the buyer is moderate.
2.2.2 Bargaining Power of Supplier
By looking at the given case, it can be seen that the presence of Nike, Adidas, Puma and the other globally branded manufacturers with the high quality concludes the fact that the bargaining power of the industry is low which make these suppliers the price deciders for their products. In this scenario, the switching cost is very high with which the retailers could lose the brand quality and values. Moreover,the growth is highly dependent on the high advertisement and marketing which overall concludes the fact that the power of suppliers is high.
2.2.3 Threats of New Entrants
The market is full of potential manufacturers in the apparel industry making it very difficult for the new comers to enter into the market and operate successfully therefore, it concludes the fact that the threat of New Entrants in this business is relatively low making it easier for the Neechie Gear Company……………….
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