Swot Analysis on Cuc
Autor: simba • April 10, 2011 • Essay • 788 Words (4 Pages) • 701 Views
Strength of the firm
First mover advantage
Number of company industry is very few and CUC is the first mover in the industry. So CUC gets all the benefit of first mover. It builds a huge customer base as first mover. Besides it creates band loyalty among the customer
Large member base
Large member base is one of the main benefits of CUC. Currently it has a huge customer base of 12 million. And number of customer is creasing at a high growth rate
No inventory cost
One the main advantage of CUC is that they have no inventory cost. As they execute the order through independent vendor. Therefore they need not to bother about the carring of inventory.
Lowest offer price
CUC ensures its member lowest price available on its goods. it also guarantee its member to refund the amount for otherwise .if a member after purchasing merchandise through CUC sent and advertisement from an authorized dealer with lower price within 30 days of placing an order, the company agreed to refund the difference.
Marketing strategy of CUC is an important strength of the company. The company's expansion has been built on a foundation of creating developing and marketing abroad array of valuable services to customer.
Weakness of the firm
High new member solicitation cost
One of the main weaknesses of the firm is the high member acquisition cost. In the first year member acquisition cost is forty one dollar and membership fee is thirty nine dollar. So there is shortfall of two dollar in the first year.
Confucius accounting system
Firms accounting policies is not clear to all. There is lack of clarity in the notes and financial system. So investor is not convinced by the financial statement. So though firm generate high earnings share price is decreasing.
New product invention opportunity
Firm has huge opportunity to expand its product and services. One of the main strategy of the firm is developing and serving the customer.
Market expansion opportunity in other territory
Company has opportunity to expand its product in other location. as firm has create a brand loyalty in the current territory so firm can expand its business in new location.
New firms may replicate firm's strategy