TT International Limited, a Singapore firm which was listed on the Main Board of Singapore Exchange in June 2000, deals in three core businesses namely; trading and distribution of electrical and electronics products, assembly and marketing of its own house brand – Akira, and providing third party warehousing and logistic services. This report serves as a strategic audit on Akira due to its significant contribution to the company’s turnover in consumer electronics sector and its high growth potential.
An overview of the current performance of TT International and its corporate governance are first presented prior to conducting a detailed analysis on the external and internal environments which Akira operates in. Akira is exposed to many opportunities such as new and growing markets, positive economic outlook of Asia and the positive effects of the changing demographics on certain Akira’s products etc. In addition, Akira is exposed to threats from its competitors, an increase in oil prices and demographic changes etc.
The internal environment analysis revealed that Akira possesses strengths like a promising house brand, being financially sound, having a well-established distribution network, possessing pioneering spirit and has a loyal customer base. However, Akira is weak in its human resources management, being inactive in R&D and a lack of emphasis in brand image.
After the SWOT analysis, objectives are formulated and a TOWS matrix is constructed to generate alternative strategies for the next five years on three levels- business, corporate and functional. Among the many proposed strategies, the following were recommended.
Business Strategies (Cost Leadership)
Should continue adopting cost leadership strategy to upkeep Akira’s brand image as a value-for-money brand.
Corporate Strategies (Concentration – Vertical Growth)
Should engage in forward integration through opening more retail outlets to increase visibility and...