My chosen product Essay Example for Free

My chosen product Essay My chosen product is a Philips Plasma Screen TV. This is my SWOT analysis for this electronic product. Strengths: Flat screen plasma TVs are becoming increasingly popular and as this certain product includes stand and speakers as standard meaning its a bargain. Weakness: There are a large range of different plasma screens available meaning customers are spoilt for choice. This includes competition with rival plasma producers all competing to be sold. Opportunities: Philips are continually producing new quality stands and screens allowing them to offer more products to potential buyers. Threats: Competition posed to Philips by other large organisations such as Sony are the biggest threat. This is due to them both competing for a large share of the same market. Section 4: Stakeholders Richer sounds main stakeholders are: Customers are existing customers. They have a relationship with the organisation as their link is that they buy the products or the services. Employees rely on the business for employment so therefore have a relationship with the business. Suppliers take orders from the business making sales, this they are stakeholders. Sponsors (of the organisation) pay money to associate the name of their product or business with an event or person. The bankers of the business lend money to company therefore making them an important stakeholder within the organisation. All the above stakeholders are interested in the business as they rely on their activities and trades to keep their organisation running. An example of this is suppliers, without taking orders from the business; they will not make any profit, which may lead the organisation to shut down. [M2] When businesses are faced with concerned stakeholders, they have a choice of either taking action, or not. The decision taken will usually depend on the power of the stakeholder group, the issue the group has raised, or the effect of any action taken upon other stakeholder groups. As every business has a main aim to survive, its usually sensible for businesss to respond to stakeholders concerns. Lack of consideration may lead to boycotts, which will decrease profits. An example of this is when Greenpeace called for a boycott of Shell petrol with the result of sales falling by approximately 50%. This is also a problem for Richer Sounds as its part of the large sound and vision market, meaning loss of profit may cause Richer Sounds to fall and become bottom of the market. If this happened Richer Sounds competitors would have an increased profit, making it harder for Richer Sounds to recover. However if the organisation chooses to do nothing about the issue it may at times damage the business by boycotts which eventually lead to profit lose. Taking action against these concerns may benefit the business, however bearing that no business will ever be able to please all its stakeholders all the time. If Richer Sounds was faced with this problem, they could choose to either face or sort the problem, or to ignore it. In my opinion, Richer Sounds should tackle and face the problem, because consequences could be fatal (such as boycotts). An example of this was when Greenpeace boycotted Shells Fuel organisation, resulting in loss of approximately 50% in profit. Richer Sounds keeps up very well with changing technology thus it must also keep up with all other external influences such as, economical factors. Richer sounds are affected by a range of economical factors including exchange rates. This is due to the fact that Richer Sounds buys a large share of their stock abroad. When Richer Sounds makes purchases form Europe, the price usually depends on the value of the pound relating in relation to the euro. Richer Sounds always benefits if the pound is stronger, thus the goods cost less. However if the pound is falling in value, Richer sounds then have to take this into consideration as the goods are then more expensive. Richer sounds might successfully adapt its activities, by simply watching the changes in money rates and the strength of the pound to the euro. Another factor that also affects Richer sounds is the level of prices. If the general level of prices increases, then Richer sounds will be forced to increase there prices as well. When prices are increased then competition also gets heated. However, the prices of electrical goods have fallen over the last few years, thus allowing Richer sounds to become more competitive then ever. To help combat these problems Richer Sounds may choose to keep record of the prices and sales, as it may help them predict whether the prices of certain products may increase or decrease.