Economics

The SWOT analysis should be able to let Auto Edge understand the internal and external of their corporation. This should map out their future plans with the negative and positive factors. SWOT can act as a precursor for Auto Edge’s action. This can show new initiatives, strategy for new policies areas for change refining and redirecting (Wagner, 2010).

The SWOT analysis will create four areas and each in comparisons with one another. We will show strengths, weakness, threats and opportunities.

SWOT ANALYSIS

Strengths- thirty years in business, brand name famous and strong, cost management, number one national auto supplier, reliable and loyal,

Weakness-lack of liquidity,high overhead cost in the United States, poor quality, high labor costs

Opportunities- market share will grow in South Korea, fastest developing economics in the industrial world, improved quality, improve overall profitability

Threats- currency fluctuation, high competitive market, large fluctuations in material costs

            Auto Edge’s overall strengths consist of our strong brand name and with this we have always portrayed over the thirty years of being in the market high levels of quality and dependability. Having the overall knowledge of the auto parts markets and the distribution channels our customers have been extremely loyal to our brand and throughout these years we have been the leader in our production and sales.

In the term weakness recently it has been clear that we have had several recall and are now holding a weak presence in the emerging market. Along with another key aspect of weakness is the high labor cost and the issues of lack of flexibility and not being the high costs. These issues have brought us to the point of not being able to meet competition and are faced with high overhead.

 

Having our plant in South Korea is an opportunity to be a part of the world’s fastest developing economic industrial country which gives us many opportunities for expansion to new markets and can improve the overall pricing problems. We have the strategy to meet the situation of having well in our product and this can come from new changes in technology which would show eventually profitability.

 

Since the markets are extremely competitive and the low barriers to entry have given international players to enter our market, with our quality now it has given our consumers the opportunity to purchase fake and different replicas of our brand name and gives the competition an edge in the market. Auto Edge operates in different countries which will show fluctuation in currency rates and could cause an overall concern for profitability.

 

Creating a vision for Auto Edge has always been one of their strengths and it is one last thing that Auto Edge wants to do is shut down that vision. Having thirty years a strong years in the market has helped the company gain the ability to effectively show higher profits. The initial question it is time to shut down operations in South Korea it is when the monthly income and expenses and the extra capital that was put into the continued operation in South Korea are at the point that it cannot service at the most another six months.

 

Objectives analysis will show you this and we must take in consideration our reliability, quality and dependability with our main aspect in our business we will never reach out to what was once our loyal customers. The SWOT analysis with identifying the strengths, weakness, threats and opportunities will improve your customer service and with having this data your customer will see your competition and their deficiencies. This analysis can be the foundation of our Auto Edge aggressively improving our product and our customer service.