Strategic problem and issue identification
The Swisher Mover and Machine Company was founded by Max Swisher in 1945 when he was 18 years old. The company had been experiencing sluggish sales in a growing rapidly industry. The company has always produced a positive financial record since its inception.
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The problem only problem is its strategic distribution procedures. While it recorded a steady rise in volume of sales, there are other opportunities that the company had not considered.
Therefore, it was not making its optimal sales volume. Going by the trend in the industry, SMC had an opportunity to make more sales through private dealers. The company could have ceased the opportunity provided by the growing demand from private dealers and foreign customers.
The lawn mower industry is seasonal and sales are always changing. The Swisher Mover and Machine Company was mainly dependent on finished goods and this was a major challenge. The industry was not very competitive at the time.
The main competitors in this case were 10. Nonetheless, the national government was also part of the competitors. Sales from the national government accounted for 24% of the net sales while private companies’ sales including SMC accounted for 75%.
The company was small and privately owned. However, it had a long history and a very strong brand image in the US. Sales were always consistent and the company made profits although the volumes of sales were not very steady.
The type of products sold included three types of mowers which were; the Zero turning mower, the Trail mower, and the push mower. Its chain of distribution included supplying its products to retailers, wholesalers and private individuals. Its sales were mostly from the lager metropolitan region.
The major sales were made from private individuals and companies who accounted for 40% of the total sales.
Wholesalers were the second largest sellers of the SMC products while the direct dealers accounted for 30 percent of the total sales. Sales from the global market were dwindling and at that time they were accounting for only 5 percent of the total sales.
There was consistent growth of the industry. The following year was projected to see a rise in the demand for mowers hence more sales. SMC had been experiencing a consistently rising trend in the market and this was expected to continue owing to the looming rise in demand from the private dealers.
The company does not have any merchandising plan or a signed agreement to enhance its sales. Signing the proposal gives the company a better chance to grow and expand. This will ultimately increase the brand presence in the region and also in the global market platform.
The merchandise chain was expected to grow in popularity and this would have given SMC an advantage for its product’s popularity to grow too. To enhance its presence the company should have built a stronger brand image hence improving its sales. The company should also consider diversifying its production to unfinished goods.
Finished goods are seasonal and the company missed an opportunity to make more sales through sub assembling processes. This would be the most prudent strategies for the company to increase its sales and enhances its production in greater proportion.