Worms, Inc.

Topics: Marketing, Barriers to entry, Fishing Pages: 3 (777 words) Published: January 24, 2013
SWOT analysis:
| Positive | Negative|
| Strengths:| Weaknesses:|
Internal| *Exclusive rights to sell a line of flies made by artisans*Sells all forms of real bait *Loyal following of customers*Company name is immediately recognizable*Great distributions through franchises*Bait is guaranteed*Very strong knowledge about worm farming*Low fixed costs*Fatter Worms: seem to work better*actively pursuing R&D. Example: R&D department doing experiments that indicate a worm can be engineered that will be 33% more successful at attracting trout & bass *Franchises in worm farming, higher supply| *Only sold through a catalog*Limited product lines*Market share is decreasing *No contracts for mass produced lures*Management Can be narrow-minded*Line workers think Managers are “old school” & tend to exhibit self-limiting behavior*No artificial bait*Worms cost more for consumers*limited suppliers| | Opportunities:| Threats:|

External| *Current economic times (recession) can induce people to fish for food* 80% of market share can be gained.*low interest rates on loans*focus on healthy eating*Technology—internet sales*high price of fish in stores| * Potential for other companies to do R&D*Other companies are expanding what they are selling beyond fishing supplies*other companies with larger selection of bait*not getting the independent artisans products*are these exclusive lines of flies patented or trademarked so others can’t copy them?(this is part of what makes the company a differentiation company—having an exclusive line of flies)* Customers not willing to pay more for worms*Water/fish contamination concerns that may result in fewer people fishing and fishing supply demands decrease*new laws and regulation affecting fishing *low price of fish in stores|

Porter’s “Five Forces” Analysis:
1. Threat of New Entrants: Very low Barriers to Entry, according to the Worm Study, there are “tens of thousands” of independent shops...
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