Ashmark Corporation, Dealing with a supply disruption Harvard Case Solution & Analysis

SWOT Analysis:

STRENGTHS:

Ash mark has been in the industry for a handsome time-span and it has developed a strong operations workforce that leads the company towards rapid growth and success. The revenues and capital allocation of the company are supported by its experienced business units and personnel.

The company enjoys a high growth rate and productive pattern. The company has been successful in sustaining its growth rate. The efficient procedures of the company for providing quality to their customer are driving the company’s performance towards better health and standing.

Efficient operations backed by skilled workforce have helped the company grow over the years. The company has grown a lot since it was developed and has never looked back since then. Skilled work force is successfully helping the company in taking steps towards higher and advantageous financial statements.

The industry requires high volumes of cash inflows and expenses. Abundant resources are allocated and put to risk due to the capital intensiveness of the industry. The intensity at which the capital is required creates barriers for the new entrants and reduces the threat of new entrants from the industry as the capital for required for initiating such operations require heavy capital investments.

WEAKNESSES:

The company has been doing operations successfully with the support of its largest supplier Red Star. The supplier is now at the brink of bankruptcy and this will affect the business operations of Ash mark Corporation. The dependency level of Ash mark on Red Star has increased due to the long association of these two entities.

The business units of Ash mark Corporation are small as compared to its competitors. The size of the business units affects the operations of the firm and the growth patterns and pace of the organization.

OPPORTUNITIES:

The operations of the organization are not limited to the national boundaries. Ash mark is successfully operating in different countries and locations of the world, which allows the company to gather more customer and attention of new potential customers

The global reach of the company allows it to increase its sales and revenues. The global existence of the company enables the company to reach a larger population, which can result in generating higher volumes of revenues and sale for the growth of the company.

Ash mark Corporation has been a known entity in the industry. Ash mark has a rich portfolio which helps it to attract customers. The company can start to acquire other small firms that have growth potentials.

New acquisitions would further empower the portfolio of the company and allow Ash mark to enhance its operations into different dimension and parameters of the industry.

THREATS:

The labor intensity in the industry is high as the company uses the traditional means for production. The dependency on labor is high and an increase in labor costs can negatively affect the operation and the growth of the company.

The company might experience higher expenses due to increased labor costs. The labor costs will affect the financial standings of the company and might decrease the operational efficiency of the company.

The rivalry in the industry is immense and the company faces intense competition from its rivals. The threat from competitors forces the company to keep on their toes as they constantly have to increase the efficiency of their strategies and often tailor their strategies to neutralize the competitor’s edge over their operations(Gretzky, n.d).

PORTER’S FIVE FORCES:

RIVALRY: (HIGH)

Competition in the industry is intense. The competitors have been adopting new strategies often for achieving higher volume of sales and revenues. The industry has huge potentials for growth and revenue generation.

The potential in the market is high, which influences the companies to initiate innovative operations supported by efficient supply chain management and organizational skills. The rivalry amongst the competitors poses a constant threat to the organization for striving towards innovation and efficiency.Ashmark Corporation, Dealing with a Supply Disruption Case Solution

Rivalry leads the company towards tailoring and altering the strategies through which the company plans to achieve the aims and goals of the company. The long term and short term goals of the company are constantly challenged by the competitors due to continuous alterations to the industry parameters(Dälken, ‎2014).

THREAT OF NEW ENTRANTS: (HIGH)

The industry has huge potentials for growth and sales. This is enough to attract new entrants to enter the industry and start their business operations. The new entrants thinking of entering the market focus on the volume of sales and profits the existing companies are generating..............

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