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Swot Analysis of Ecover

Autor:   •  September 2, 2011  •  Case Study  •  838 Words (4 Pages)  •  2,842 Views

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2.0 Situation of Ecover

2.1 Situation

As we know, there are many different brands of clean products in UK. Ecover is the world's largest producer of ecological detergents and eco-friendly cleaning and laundry products. SWOT analysis is a method which used to determine the company's own competitive advantage (strength), a competitive disadvantage (weakness), opportunity and threats. These factors determine the situation of the company and display the problem. This method is the best way to analyse the situation of Ecover.

SWOT analysis of Ecover

Strength:

Firstly, it is environmental protection, Ecover stick to use original raw material to produce their product, its products can protect environment in high measure. Secondly, it is high efficiency, By way of practice, Ecover cleaning products are proved with high efficiency to clean the besmirch. Thirdly, organic produce is protected by government, organic produce can decrease the pollution effectively.

Weakness:

The products' price of Ecover is more expensive than other like products. Many people have no enough money to buy it. The high added value of organic produce finds its foremost and prime application in food. The cost is too high for producing the washing products. If Ecover want to involve organic raw materials, they would represent an extremely small volume on their operations and their price will be rised. These causes wouldn't be acceptable for the customers and consumers.

Secondly, Ecover does not have a high market share, its product positioning is set in a high level, which will affect its market share. As we known, organic ingredients offer a huge advantage on the agricultural side, but no advantage to washing and cleaning products. People like to use the old-fashioned product to wash.

Thirdly, It's not well marketed. By our research, we found the number of local store which sells the products of Ecover is too less.( Ecover.com). If people want to buy its products, they need to go to the supermarket or some specialty stores. It's too complicated. There is not a complete technical and logistical service. Many potential customers will select other brands.

Opportunity:

Ecover can go back to old-fashioned formulations to include some organic ingredients for their products. It is not only a way to decrease the cost, but also creative a new product series. On the other hand, attracting the potential customers is also a good opportunity for the Ecover. Generally´╝îthe potential customer has 3 different types:

1. New customers,

2. Existing customers,

3. Old

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