Mark. Research Project 2 Pages
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SWOT Analysis
SanDisk Company
Introduction
SanDisk as one of the leading providers of the flash memory products like the PCI flash, SSDs, server solutions, mobile storage, MP3 players and removable memory cards and USB drives has grown tremendously in the last twenty seven years. In the digital world today, they have a vast market segment ranging from individual and business corporate solutions. Any individual with an electronic gadget is likely to be their client. The target age group ranges from as young as four years of age old children who play video games to adult aged. Anybody with a mobile or cell phone device, laptop, tablets or computers are their target market. Anybody on the Internet is also a potential client. The demographic coverage for their products is the entire world. Every country, every nation, all cultures, religious sectors, age groups, genders amongst other groups who have embraced technology are potential clients for their products. The Internet has led to globalization which makes the world a small large market place. Individuals and companies can source electronic devices from anywhere in the world and SanDisk can supply their products to all as well (Fujita & Thisse, 2013). Social media and social sites and applications have led to a behavioural change where everybody relies on electronic gadgets and the internet to communicate, share data whether audio, video or text, learn, campaign amongst other things people may need to share or exchange. Electronic storage devices thus become a necessity to store, backup, transfer and exchange data.
SWOT ANALYSIS
Like every other organisation, the SanDisk Company has its strengths, weaknesses, opportunities and threats. It could therefore utilise the SWOT analysis to uncover an exploit available opportunities by maximising its strengths, work on reducing its weaknesses as well as understanding risks to the business in order to protect the organization against potential threats (Fleisher & Bensoussan, 2003).
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Strengths |
Weaknesses |
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· There are no barriers to market entry because the Internet has an already open market online purchases increase daily. · High growth rate due to the rise in users of their SSD and storage devices both individual and businesses. · High profitability and continuous revenue growth due to the growing increase in customers. · Good credibility hence has access to monetary assistance that can improve their product range and coverage thus growth in business. · They have an innovative and highly skilled technical and managerial workforce. |
· Their productivity is at times lower than the demand. · The cost of production is high. · There has to be continuous investment in research and development to keep up with technology changes. · The tax structure is high for their products. · They have to produce in small batches to avoid wastage due to dynamic technology. · Access to monetary assistance may lead to large loans. |
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Opportunities |
Threats |
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· New Markets emerge each day as new technology in software and devices evolve · New products and services due to market demand. · Growing demand as the world becomes digitalised especially in terms of communication, storage, transfer of data and data recording. · Growth in demand and products leads to growth in revenue and profitability · Growth in revenue and profitability leads to growth in economy |
· Rise in competition due to proof that the demand is high and rate of success in continuous profitability. · Cash flow may be an issue due to loans and high production levels especially when demand overwhelms supply. · Increasing interest rates in those they borrow money from. · High tax rates |
References
Fleisher, C. S., & Bensoussan, B. E. (2003). Strategic and competitive analysis: Methods and techniques for analyzing business competition. Upper Saddle River, NJ: Prentice Hall.
Fujita, M., & Thisse, J.-F. (2013). Economics of agglomeration: Cities, industrial location, and globalization (2nd ed.). Cambridge: Cambridge University Press (Virtual Publishing).
