SWOT Analysis of Aarong

SWOT analysis is a powerful technique for understanding organizations Strength & Weakness and looking for the Opportunities & Threats it may face. Used in a business context it helps organization carve a sustainable niche in a market. This analysis is mainly based on an imaginary situation.

SWOT analysis of Aarong

SWOT analysis of Aarong

 Strength

Aarong is a very reputed organization. They are now capturing 68% of total handicraft market share in Bangladesh. It’s a local brand and now exporting their products outside of the country. Aarong has good reputation for fine quality products. It has a strong management team who are continuously giving their great effort to make it a successful one. Another important fact is that, Aarong has almost “Zero” production damage rate which reduces their cost. They are innovative and always bring some new product in the market which meets customer requirement and expectations. The organization is a respected employer that values its workforce.

Weakness

Aarong has a reputation for new product development and creativity. However, they remain vulnerable to the possibility that their producer may not be able to produce product timely due to their inability. The collection channel of the organization is not that much structured so that they can get the products from the producer on time and it may create problem for them in future. If any producer is not able to make the product on time due to some personnel problem then the company will also not be able to deliver their product on time. This is a big problem and it happens most of the time on delivery. Aarong charges higher price relatively than their other competitors as a result some times customers lose their interest to by product from them. Its sales force or sales girls within the outlet are not properly trained up. Sometimes they make customers disappointed by their attitude and customer doesn’t feel good to buy from there. Sometimes they suffer for financial problem, although it’s a rare situation.

Opportunities

Aarong is very good at capturing the advantage of opportunities. It can go for new distribution channel like it can make some joint venture with some other small Boutique and sales its products in more places. Through that it can capture more market share in the handicraft industry in Bangladesh.  Aarong can expand its business globally. New market for handicraft such as Europe and America are beginning to emerge. People are now trendier about local events & functions like Pahela Falgun, Pahela Baisakh, Victory day, Independence Day etc and they buy new and special products for these events. Aarong can make new products to sell in those special occasions. According to the season change, people are also changing their preference in buying products and considering this scenario Aarong can produce products on the basis of seasonal variations.

Threats

Aarong doesn’t have any big competitors right now. But they have some small competitors like KayKraft, Anjans, Deshal, Jattra, Khubsurti, Rina Latif, OZ, Rang and some other Boutiques established at Banani 11, who are taking their 32% customer and increasing in a slow rate. Aarong always face price wars with their competitors. Its competitors have some superior products like OG’s Panjabi shape, Khubsurti’s design of Salwar kamiz Rang’s Shari’s color, which is decreasing Aarongs market share as well as sales.  But now they are repositioning their Brand to compete with them.

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: