Toileper Company is one of the leading toilet paper manufacturing and distributing companies in the U.S. The company aims at maintaining its market leadership position through adequate and calculated service delivery. The company performs a SWOT analysis often to establish its market position in the industry and to review its business strategies (Pahl & Richter, 2009, p.36).
Toileper SWOT Analysis
Toileper Company has several strengths that enables it maintain a high status in the industry among other bigger companies. The most profound strength is derived from the unique brand of the company. The brand name serves as key communicator of the nature of products that the company produces. Most the companies operating in the same industry lack a brand name that markets their products. It’s easier for new customers to caption the brand name of the company. The fact that Toileper Company packages its products in biodegradable materials is another source of market strength. Nowadays, most prefer to use products whose waste management will not be a problem. People are conscious of environment preservation and opt for products whose waste is friendly to the environment. Strength is that the company has designed a unique packaging for its product that is attractive to the customers. Strategic pricing is an additional strength of Toileper. The company has distinct prices for various categories of its products. The pricing is sensitive to the end consumer (cited in Pahl & Richter, 2009).
Toileper Company is also coupled by some weaknesses indicated by the most recent market information. The company lacks diversification in providing products that cover the needs of people from all ages. Failure of the company to target children of below four years makes the company to lose out on potential customer base. The company should diversify to products such as baby wipes to counter competition from companies providing these products operating from the same industry. One major opportunity that the Toileper Company faces is that it may expand its market coverage to emerging markets. Since toilet papers are consumed unanimously by people of all classes, the company can utilize this fact and expand its market boundaries for more sales. The company can utilize the diverse nature of its products in various markets. Competition is the major threat of Toileper Company. The U.S. has got a couple of strong companies in the toilet paper production industry. These companies have got a strong capital base and efficient marketing skills hence posing a great challenge to Toileper (cited in Pahl & Richter, 2009).
Critical Steps in the Supply-Chain and Operational System
Toileper Company uses various steps to eliminate the gaps in the supply chain and the operational system. Building strong customer relations is one of the key steps the company focuses on. This enables the company to provide real time information to the customers based on availability of the product. Maintaining a reliable procurement process is another key supply chain strategy of the company. This facilitates a collaborative approach between the company’s manufacturing department and the suppliers in developing its products. Toileper Company also concentrates on product development and marketability. This is where the company integrates its suppliers with its customer to the system product development to reduce marketing time and costs (Kumar, 2007, p. 86).
Toileper utilizes various aspects of production and distribution strategies to ensure that it maintains its status of business leadership in the industry. Product differentiation is one key production strategy that Toileper utilizes. This is where the company differentiates its products based on color, quality and price in order to target different diverse clientele base. High output quality is another aspect of the production strategy. The company also uses strategic distribution mechanisms. The company utilizes second and third level distribution channels. The key aspect of these strategies is that the company is able to make timely and cost effective supplies to its customers. The company utilizes the outdoor vendor system of marketing its products to cut costs. This is because the company’s products are cheap and fast moving (cited in Kumar, 2007).
The price objective of Toileper Company is to set a price that is affordable and within the financial constrains of the target consumer. Toileper Company utilizes competitive pricing strategy to set the prices of its products. This is where the company sets the prices based on the current prices of the competitors. This enables the company to come up with the most admirable price in the industry. Bundle pricing is also a pricing strategy that Toileper has adapted. This is where a several units of the products are grouped and sold at a lower price as a bundle. Major internal factor that can affect the pricing of the products is the cost of production. Where the contribution per unit is high, the company may be forced to raise the prices of its products. Connectively, stiff competition is an external factor that poses a threat to the current pricing strategy. New market entrants may set their prices lower than Toileper’s in a bid to attract customers (cited in Smith, 2012).
Based on Toileper’s SWOT analysis, the company has more strengths and opportunities than threats and weaknesses. The company has also an admirable production, distribution as well as pricing strategy. Toileper Company will definitely continue doing well in the industry.