Logan Levesqie
11/12/24
MGT 480
StratSim SWOT & Strategy Statement
SWOT Analysis
Strengths
- Buzzy is the only car in the sports segment
- Buzzy is leading in the Singles & High-Income consumer segment
- Beaut is leading in the High-Income segment
- Beaut is leading in the Luxury class
- The firm has the second-highest dealer rating
Weaknesses
- Lowest market share
- Boffo has the lowest vehicle shares in the Family class
Opportunities
- Monopolize in the Sport class
- The firm has the second highest market share in the High Income & Enterprisers Segments
Threats
- New entrants into the sports car market
- Firm C has the higher market share in the High-Income segment
- Firm E has the higher market share in the Enterprisers segment
Firm B has several strengths, with its Buzzy model standing out as the sole sports car in its lineup, mostly dominating the singles and high-income consumer segments. The Beaut model also performs well, leading in the high-income and luxury segments and contributing to Firm B’s brand reputation, as shown by its second-highest dealer rating. However, the firm faces a couple of weaknesses, including having the lowest overall market share and the Boffo model’s struggle in the family class and segment. Opportunities for growth exist, particularly in the sports car segment, where Buzzy’s monopoly position could be leveraged for additional profits and the lack of an AEV on the market. The firm’s foothold in the high-income and enterprisers segments also offers potential expansion. However, Firm B faces threats from new entrants into the sports market, and it remains behind competitors such as Firm C in the high-income segment and Firm E in the Enterprisers segment, which could limit growth if not addressed.
Microsegments
Our three products are the Buzzy, Beaut, and Boffo. The Buzzy is our “sports” vehicle, which is why we are putting it in the 3S segment. Buzzy is “too big” for this particular class right now, but we feel that with some product development, we can craft it to fit better in the segment. The Beaut is our “luxury” vehicle, and we have decided that it falls under the 5L segment. The 5L segment, or enterprise luxury, is comprised of vehicles that are used by businesses for non-utility business-related purposes. A luxury company vehicle is something that businesses drive important clients around to impress them. We think the Beaut is perfect for this segment because of its exceptional styling and performance. Finally, the Boffo is our “family” vehicle and we feel that it should be placed in the 4F segment. The Boffo is relatively expensive for the 2F segment at $35,000, but it is considered average in the 4F segment. The Boffo offers size and safety that would be appropriate for a family vehicle.
Important characteristics
The Buzzy is a good fit for the single sports segment because we currently have a 44% unit share. Buzzy also has the best quality and styling, and minimal development choices are necessary for performance, interior, and safety improvements. The Beaut is a good size and has the best safety and quality for the enterprise luxury segment. We are also currently dominating this segment at a 54.8% unit share. We believe that the Beaut has the potential to be a staple of the “business luxury” culture, with adjustments to the interior and quality of the vehicle. The Boffo strives in interior and quality. High-income families will appreciate the quality of the Boffo because it can take the beating that a couple of children might put on it. The Boffo has a relatively low unit share for this segment at only 15.3%, but family vehicles as a whole make up the most significant portion of all vehicle sales at 33.4%.
Key elements of pricing and promotion strategies
Our company has a premium pricing strategy to reinforce its brand image as a luxury, high-performance, and high-quality vehicle manufacturer. The pricing reflects the advanced technology, engineering, and craftsmanship of our cars. Customers see value in our products because they are built well and are built to last. We have a significant market share in high-income segments because of all the attributes of our sports, family, and luxury cars. Our promotion strategies are going to reflect this, focusing our marketing efforts on themes like quality, performance, and styling. Our goal is not to be the most popular car brand but to establish an image that reflects quality and style while keeping a loyal customer base.