Winnebagoindustries: Swot Analysis and Three Year Strategic Plan

Topics: Strategic management, Recreational vehicle, SWOT analysis Pages: 6 (1213 words) Published: August 21, 2010
Running Head: WINNEBAGO INDUSTRIES: SWOT ANALYSIS

WinnebagoIndustries: SWOT Analysis and Three Year Strategic Plan

Paul S. Bodkins

Strayer University

BUS490 (008016) Business Policy

Professor: Kelly Lambert  

May 30, 2010

Winnebago Industries: SWOT Analysis and Three Year Strategic Plan

Winnebago Industries, located in Forest City, Iowa has recently experienced what could be considered its most challenging decade since founded in 1958, by business man John Hanson. Synonymous with the term motor home, Winnebago has made traveling with the comforts of home popular with the American adventurer for over half a century. Steady growth into the 21st century has allowed Winnebago to gain a strong financial footing and become the leading motor home, or recreational vehicle (RV) manufacturer in the industry. As will be shown in this report Winnebago sales have been directly affected by fluctuating interest rates, rising fuel costs, and a recent economic recession which has been dubbed the worst since the Great Depression. Through a brief background discussion of the firms’ current internal strengths and weaknesses, along with its external opportunities and threats (SWOT), followed by a detailed SWOT matrix this report will recommend specific strategic actions for the firm to take over the next three years in preparation for future growth and maintenance as the leading motor home, or recreational vehicle (RV) supplier in the United States.

Internal strengths at Winnebago stem from its commitment to quality and product innovation via state of the art design and manufacturing systems (Winnebago Industries, n.d.), which as noted by Bland and Marcis, as cited in David (Case 10, 2009), have allowed the firm to gain a strong financial footing and pay off all debt from land, buildings, and equipment. Internal weaknesses at Winnebago, as noted by Business Wire (March 18, 2010) and Bland and Marcis, as cited in David (Case 10, 2009) are primarily due to the firms production facility location, lack of a vision, negative sales due to economic conditions, and the inherent target market as defined by historical demand. External opportunities available to Winnebago, as noted by Bland and Marcis, and cited in David (Case 10, 2009), are chiefly the result of market shift, an expanding target market, and the availability of low credit and inexpensive land resulting from a continuing economic recession. External threats to Winnebago include the existing recessionary period and current oil crisis in the Gulf, and as noted by Bland and Marcis, and cited in David (Case 10, 2009), increasing fuel costs, existing competition, government regulation, and seasonal demand which drives sales. These strengths, weaknesses, opportunities, and threats are detailed in the following SWOT matrix, along with respective SO, WO, ST, and WT recommended strategies.

|Table 1 | |SWOT Matrix for Winnebago Industries | |  | |Weaknesses | | |Strengths | | |  |1. No long term debt |1. No vision statement | |  |2. Production capacity increased 30% |2. Cost of delivery high - disproportionate | | | |plant/customer locations | |  |3. RV Dealers Assoc. Quality Circle Award: 11...

References: Business Wire. March 18, 2010. Winnebago Industries reports improved results for second
quarter fiscal 2010. Retrieved from
http://www.marketwatch.com/story/winnebago-industries-reports-improved-results-for-second-quarter-fiscal-2010-2010-03-18
David, F.R. (2009). BUS 490: Strategic management concepts and cases: 2009 custom edition
(12th ed.). Upper Saddle River, NJ: Prentice Hall/Pearson.
Winnebago Industries. (n.d.). Retrieved from
http://www.winnebagoind.com/company/about-us/profile.php
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