Problem: Wayne Swisher the new president and CEO of Swisher Mower Company (SMC), is unsure of what the future holds for his firm. He was contacted by a major national retail merchandising chain about a private-brand distribution arrangement. Wayne Swisher needs to determine if he should accept the offer that was proposed by the national retail merchandising chain or reject it and continue on normal business. SWOT:
•Facilities have an annual production capacity of 10,000 riding mower units on a single 40-hour-per-week shift. •Developed great loyalty with dealers and distributors.
•Produced the first zero turning radius riding mower.
•Produce high-quality mowers that are reliable and have great longevity. •Remained profitable since its founding.Weaknesses:
•Limited distribution channels to only nonmetropolitan areas. •Produce mid-engine riding mowers while front engine mowers are more powerful and can handle the bigger jobs. •Relies heavily and their Ride King and their T-44 trail mower only accounted for 8.2 % of SMC’s total sales. Opportunities:
•Plans to develop a walk behind trimmer and edger.
•Have distributor arrangements in parts of Europe and the South Pacific which made up 5% of total sales. •SMC could develop a riding snow thrower with their zero turn radius for the winter months. •Private brand distribution.
•Sales projections for 1995 and 1996 are increasing from previous years. Threats: •Sales trends seem to be up and down. The sales are currently on the rise but history shows they could drop. •Ten manufactures make up the major competition in the riding lawn mower market. •Private label riding lawn mowers have captured a growing percentage of unit sales. •Developing a new product, the trim-max, shows that the riding lawn mower is in the mature or decline phase of the product life cycle.
•Industry statistics show that the riding mower sales are up and...