Blu Electronic Cigarette Company SWOT Analysis Essay

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SWOT analysis is analyzing the strength, weaknesses, opportunities and the threats of the business organization in question. The organizational strengths involve the activities that a company can carry with easy yielding to positive results that outdo their competitors.

This includes utilizing the company’s available resources to maximize profits as they reduce their costs, which in turn helps them to offer their services and products at appealing prices than their competitors.

Blu electronic cigarettes company is one of the leading companies that produce smoke-free cigarettes that give customers the same satisfaction with less harm.

The products are found in different flavors and have different levels of nicotine to suit all smokers. The products have vapor instead of tobacco hence environmental friendly.

SWOT Analysis
Aspect	Analysis
Strengths	These are strengths that would enable it to penetrate to Germany and the United Kingdom market with ease. There are plans to introduce the tap the market through aggressive market assuming that most of the people will be interested in trying it. Also, Blu cigarettes have been building their brand since 2009, which means that the key asset of the company is its trustworthiness, reliability, and reputation. As a result, the company has over 25,9000 retailers all over the United States, which should also be considered a major advantage and considerable support for their competitive advantage. Relatively low costs for such expensive merchandise as e-cigarettes makes Blu one of the most promising companies in the given field.
Weaknesses	The main weakness that is facing the company is the lack of sufficient funds to produce the products in large quantities. Lack of finances is also limiting on the advertisement. This weakness has the likelihood to delay the penetration of the product to the markets target. Transportation and storage costs are also posing a challenge to the company because even if it is possible to produce enough cigars, they need to be transported to the target market and be kept safely as the consumer are informed on how to use them. To make matters worse, Blu suffers from legal implementations triggered by active lobbyists. Unfortunately, there is hardly anything that the company can do with the latter; however, it can be suggested that putting the stake on the company’s assets will make the given issue less tangible from a financial point of view. Another major weakness of Blue is that it has difficulties with meeting customers’ demands.
Opportunities	The company has the opportunity to tap this market successfully because of low competition. The main competitors produce cigarettes that are smoked, and therefore, Blu electronic cigarettes company stands a better chance to introduce the product. There are no direct substitutes, and the health risk is reduced through the consumption of this product. The company, therefore, can convince the consumers to shift to this product, which is less harmful to health. Offering recyclable products can also be a good opportunity for Blu.
Threats	The main threat that Blu electronic cigarettes company is faced with includes government policies. In both target markets, consumption of cigarettes is limited to adults, who are above 18 years. There are a lot of restrictions imposed, and high taxes are imposed to discourage consumption. The company is faced with controlled production; thus even if the needed finances were available; there must be governmental regulations controlling production.

In conclusion, the SWOT analysis in Blu electronic cigarette company has paved a way to increase sales by tapping in Germany and the UK market, despite the weaknesses and threats. The knowledge of strengths and opportunity has paved a way to the success of the company.

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