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PRESENTATION ON
STRATEGIC
BUSINESS
MANAGEMEN
T
TOWS
Analysis
Q1. Do a TOWS analysis for Swades Tractors.
External Threats (T) External Opportunity (O)
Internal Strength (S)
Internal Weakness (W)
• Low Price of Tractors
• Direct Injection
technology
• Poor distribution channel
• Low technology products
20-80 HP
• Existing brand and New
Entrant
• Civil war and Customer
Mindset
• Agriculture as a major
sector
• Retail sector is growing
• Promotion of DI
technology and
educating the customer
ST (Maxi-Mini) SO (Maxi-Maxi)
WT (Mini-Mini) WO (Mini-Maxi)
• More brand awareness
to maximize the market
share
• Spread distribution
channel which will
increase the brand
visualization
• Technology
advancement and tie-up
with govt.
SWADES RUMUNI KALIKA
Critical Success Factors Weight Rating Score Rating Score Rating Score
Advertising cost 0.20 2 0.40 3 0.60 1 0.20
Product Quality 0.10 3 0.30 2 0.20 2 0.20
Competitive Price 0.15 2 0.30 1 0.15 2 0.30
Financial 0.10 4 0.40 2 0.20 3 0.30
Fuel Efficiency 0.25 3 0.75 2 0.50 1 0.25
Customer Loyalty 0.05 2 0.10 3 0.15 1 0.05
After sales service 0.15 2 0.30 3 0.45 1 0.15
Total 2.55 2.25 1.45
Q2. Do a comparison of the competitors using the
Competitive Profile Matrix toll and share your insights
• No reaction against the Swades strategy
• 80% of sale was generated from the counter of Rumuni
Q3. How did Swades’s main competitor, Rumuni, react to
Swades’s nationwide campaign? Why?
• Swades sandwich between the market leader and new entrants, Swades did not
played it’s card right, that’s why they lose their market share
• During the war, some Swades customers had been shot dead by unknown
gunman, whilst a few others had to flee their home in fear because of it, people
were scared to purchase the tractors
• Rumumi advertised in the popular newspapers like Lankadeepa and Dinamina,
as well as in local radio stations communicating about their leadership position
and fuel efficiency
• Fuel economy was not the differentiator for the Sri Lankan market because the
customers are not price sensitivite
Q4. Why wasn’t Swades able to sustain the benefits of the
mega campaign in 2006; why did they lose market share
in F2008?
• The objectives of the campaign were to educate prospective customers &
spread awareness
• The modus operandi was simple, go to a target village gather the local crowd,
do a demonstration with a rotavator in the field
• All pictures of Swades tractor: product brochures, leaflets, advertisements were
changed to a happy and prosperous Sri Lankan family next to their Swades
tractor
Q5. Why was there a low initial off take of rotavators (20 rotavators in 8 months)
despite extensive product promotion efforts? Knowing that Rumuni had an
emotional appeal with the farmers, and considering the relatively poor adoption
rate of rotavators in India, was Angad’s move to promote rotavators in the Sri
Lanka correct?
Pros:
• Muscles was the only manufacturer in India who had the capacity of scaling up
volume in a short span of time
• Muscle quality was tried and tested and so probability of success with muscle
was the highest
Cons:
• Muscles instead on its brand name being put on the rotavator
• There was a risk that muscles could approach other manufacturers, once its
brand become popular
• There must be contract between both the party regarding the distribution of
rotavator and both the brand name should be on rotavator
Q6. What were the pros and cons of Swades tying up with
Muscles? What are the precautionary measures that Swades
should have taken whilst promoting rotavators in Sri Lanka?
Q7. Was the rotavator strategy sufficient to counter the new
strategic direction of Rumuni/GRIMAR for the Sri Lankan
market? Justify your stand.
• The rotavator strategy adopted by Swades to counter the new strategic direction
of Rumuni for the Sri Lankan market was not appropriate because in Sri Lanka
Paddy was the major agricultural crop accounting for 35% of cultivated area
• Rotavator is a tractor-drawn implement which is mainly used for seed bed
preparation within one or two passes and is suitable in removing and mixing
residual of maize, wheat, sugarcane etc, there by, helps to improve soil health and
save fuel, cost, time, and energy as well
Q8. What were the alternative strategic options available to
Swades?
• Swades should have their own outlets
• There should be extended warranty on cheap price
• Their should be customization in tractors
• Extensive distribution of spare parts
THANK YOU!

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Strategic Business Management - Swades Tractors

  • 2. TOWS Analysis Q1. Do a TOWS analysis for Swades Tractors. External Threats (T) External Opportunity (O) Internal Strength (S) Internal Weakness (W) • Low Price of Tractors • Direct Injection technology • Poor distribution channel • Low technology products 20-80 HP • Existing brand and New Entrant • Civil war and Customer Mindset • Agriculture as a major sector • Retail sector is growing • Promotion of DI technology and educating the customer ST (Maxi-Mini) SO (Maxi-Maxi) WT (Mini-Mini) WO (Mini-Maxi) • More brand awareness to maximize the market share • Spread distribution channel which will increase the brand visualization • Technology advancement and tie-up with govt.
  • 3. SWADES RUMUNI KALIKA Critical Success Factors Weight Rating Score Rating Score Rating Score Advertising cost 0.20 2 0.40 3 0.60 1 0.20 Product Quality 0.10 3 0.30 2 0.20 2 0.20 Competitive Price 0.15 2 0.30 1 0.15 2 0.30 Financial 0.10 4 0.40 2 0.20 3 0.30 Fuel Efficiency 0.25 3 0.75 2 0.50 1 0.25 Customer Loyalty 0.05 2 0.10 3 0.15 1 0.05 After sales service 0.15 2 0.30 3 0.45 1 0.15 Total 2.55 2.25 1.45 Q2. Do a comparison of the competitors using the Competitive Profile Matrix toll and share your insights
  • 4. • No reaction against the Swades strategy • 80% of sale was generated from the counter of Rumuni Q3. How did Swades’s main competitor, Rumuni, react to Swades’s nationwide campaign? Why?
  • 5. • Swades sandwich between the market leader and new entrants, Swades did not played it’s card right, that’s why they lose their market share • During the war, some Swades customers had been shot dead by unknown gunman, whilst a few others had to flee their home in fear because of it, people were scared to purchase the tractors • Rumumi advertised in the popular newspapers like Lankadeepa and Dinamina, as well as in local radio stations communicating about their leadership position and fuel efficiency • Fuel economy was not the differentiator for the Sri Lankan market because the customers are not price sensitivite Q4. Why wasn’t Swades able to sustain the benefits of the mega campaign in 2006; why did they lose market share in F2008?
  • 6. • The objectives of the campaign were to educate prospective customers & spread awareness • The modus operandi was simple, go to a target village gather the local crowd, do a demonstration with a rotavator in the field • All pictures of Swades tractor: product brochures, leaflets, advertisements were changed to a happy and prosperous Sri Lankan family next to their Swades tractor Q5. Why was there a low initial off take of rotavators (20 rotavators in 8 months) despite extensive product promotion efforts? Knowing that Rumuni had an emotional appeal with the farmers, and considering the relatively poor adoption rate of rotavators in India, was Angad’s move to promote rotavators in the Sri Lanka correct?
  • 7. Pros: • Muscles was the only manufacturer in India who had the capacity of scaling up volume in a short span of time • Muscle quality was tried and tested and so probability of success with muscle was the highest Cons: • Muscles instead on its brand name being put on the rotavator • There was a risk that muscles could approach other manufacturers, once its brand become popular • There must be contract between both the party regarding the distribution of rotavator and both the brand name should be on rotavator Q6. What were the pros and cons of Swades tying up with Muscles? What are the precautionary measures that Swades should have taken whilst promoting rotavators in Sri Lanka?
  • 8. Q7. Was the rotavator strategy sufficient to counter the new strategic direction of Rumuni/GRIMAR for the Sri Lankan market? Justify your stand. • The rotavator strategy adopted by Swades to counter the new strategic direction of Rumuni for the Sri Lankan market was not appropriate because in Sri Lanka Paddy was the major agricultural crop accounting for 35% of cultivated area • Rotavator is a tractor-drawn implement which is mainly used for seed bed preparation within one or two passes and is suitable in removing and mixing residual of maize, wheat, sugarcane etc, there by, helps to improve soil health and save fuel, cost, time, and energy as well
  • 9. Q8. What were the alternative strategic options available to Swades? • Swades should have their own outlets • There should be extended warranty on cheap price • Their should be customization in tractors • Extensive distribution of spare parts