JONES BLAIR CASE ANALYSIS
1. According to me the biggest strength for Jones Blair is their high quality of products, as they have been in the industry for a very long time and have invested a decent amount into research and development work. This coupled with knowledgeable and experienced sales representatives who are helpful and well liked by the customer’s adds to be their strength. They also sell their products to both Professional painters and DIY markets.
One of the biggest weaknesses for Jones Blair in the market is that they are not competitively priced in comparison to their competitors. Jones Blair is in fact the highest prized paints in the market. This could be a big disadvantage to the company as the DIY market in the in DFW area holds the most major market and accounts to about 70% of sales comprises of DIY painters who according to a survey focus mainly on cost, and paint is just a commodity for them. They choose the store first and decide the brand which makes it obvious that they tend to focus on getting whatever is cheap instead of looking out for quality of paint. In addition to that they have only 8 sales representatives and spend about 8% of net sales on advertising.
The paint Industry is a maturing industry where Professional painters look for high quality paints whereas Do it yourself painters focus mostly on cheaply available products. THREATS
Because of the growing pressure by the Environmental Protection Agency(EPA) to reduce volatile organic compounds(VOC),the profit margins have declined considerably, besides facing a strong competition by substitute products such as aluminum and Vinyl siding. Also there is a very huge completion from mass merchandisers and big paint companies especially in the DFW,Do it Yourself segment which holds the major industry share.
I think that strengths, weakness, opportunities and Threats do not necessarily outweigh each other every time...