We will in this thesis examine the growth and development opportunities for Europe's largest organisation within direct sale, i.e. Rahmqvist. The empiric will be analysed and evaluated with a base of theories. The main bottom theory used is the SWOT analysis, but in order to make a more thorough study, other perspectives, such as the financial, internal and external, will be taken into consideration. It is in our belief that these are aspects that affect the growth and development opportunities as well and hence need to be considered together with the SWOT. It can be concluded that we believe that Rahmqvist products can be successfully launched in new foreign markets assuming the fact that they adopt a strategy that goes according to our recommendations; such as expand geographically, develop a low cost- and fashion product line. The overall aim for most of today's companies is to generate profit. The underlying basis for that is to be able to stay on the market i.e. survival. The strategies used for this are different within different branches as well as individual for companies. A criterion for keeping the market shares is generally to be able to grow. Since, if growth is not created, other competitors will increase their market shares and hence your company will be relatively small and might in the end experience to be outplayed by the other rivals and new entrants.
[...] In order to reach the strategic challenge of Rahmqvist which is reaching 1 billion revenues, we have analyze new potential geographic markets, products and customer segments and give a recommendation on how to pursue a path of successful and profitable growth . Beside these areas, Rahmqvist's objective could also be achieved by the acquisition of other companies or developing low cost and fashion line products. Fashion line products are more and more demanded among the Swedish society Suggestions Expand geographically The market in general Rahmqvist's strength lies, as we said, in its diversity. [...]
[...] The thing is that when Rahmqvist chooses to always keep the same amount of products and brands, it has a biased strategy, especially referring to the timing of creating new brands and products. Rahmqvist decides to create a new product or a new brand only when another one is removed from the market, but it is not obvious at all that this is always the right timing to create this product. Let's imagine a situation where Rahmqvist has a new project for a new product, is it going to wait for another product to be removed and then lose meanwhile the pioneer advantage of entering a new market with a new product? [...]
[...] Rahmqvist clearly states its work always begins and ends with the customers Weaknesses Rahmqvist lacks a clear growth strategy and a long term execution plan. The only identifiable strategy they seem to have consists of strengthening the markets they are already in, instead of looking into growth in different part of Sweden or in new countries abroad. By looking to expand in already present markets, the company explains that it aims to complement with good bosses. Rahmqvist strongly relies on its human resources, which makes its growth on the long term rather uncertain. [...]
[...] Event though Rahmqvist main core value is the differentiation with high quality products, Rahmqvist might feel serious danger if new competitors try to enter the market and differentiate themselves not only by the quality of their products but also with innovative and fashion models with low prices Supplementary growth aspects Financial aspects In order to evaluate the calculated number of ROE we will try to make a comparison with the opportunity cost of capital, i.e. the Weighted Cost of Capital (WACC) in this case. [...]
[...] Nevertheless, this is only a milestone of the development; one does not intent to stop after that Theories: growth and development 3.1 SWOT Analysis Strengths Weaknesses Quality processes and procedures Lack of marketing expertise Strong brand and reputation Location of the company Differentiation advantage Competitors Diversity Too much linked to its human resources Internal Management Personalised service Opportunities Threats Developing market Price war Mergers, joint venture or strategic Competitor with new and innovative alliances substitute products or services A new international market Removal of international trade barriers Online opportunities Strengths Rahmqvist's main strength is their differentiation advantage that comes from their quality and environment-friendly policy. [...]
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