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1.
STRENGTHS WEAKNESSES
Be one of the world’s largest toy Can no longer survive because its
producers, with over 60 million toy products are purely original equipment
products delivered to six of the world’s manufacturers (OEM) - Makeup of 90%
top ten toy brands OEM
OPPORTUNITIES THREATS
The company produces toys with low Nowadays people have a trend to choose
prices and high quality, so it attracts a friendly-environmental products =>
large number of customers to buy sales volume will decrease if it does not
products adapt to the current needs of customers
Having a good reputation (with existing Today’s more popular toys can use in
brands), if a new environmentally excess of 500 million disposable alkaline
friendly product is released, it will batteries per year. With a large number
attract and create trust with customers. of disposable alkaline batteries, the
company is subject to a large tax from
They can create new products, especially the Hong Kong environmental protection
eco-friendly products to attract and law, spending this expense affects the
satisfy customers' needs. company's profit.
STRENGTHS WEAKNESSES
OPPORTUNITIES THREATS
Can research and produce many Have limitations in attracting trust from
environmentally friendly products. technology companies to contact.
Wah Shing Toys is advanced in the The disadvantage of the alliance is that
production and design of high-tech toys. Wah Shing Toys handles all of its
business internally which now depends
Horizon Fuel Cell is a developer of on Horizon Fuel Cell Technologies.
fuel-cell products, to lead the charge for
eco-friendly toys for global markets.
Acquire knowledge from partners and Strategic alliances have their own risks,
develop capacities that can be exploited specifically, if the parties are not
more broadly elsewhere. financial equals.
The alliance between the two companies Some risks may be range from the loss
to create eco-friendly toys has helped the of operational control and confidentiality
company expand its market share to of proprietary information and
reach out to customers who prefer to use technology.
eco-friendly products.
Sufficient suitability of an organization's Lose link with the market when having
resources and capabilities for it to exist. to meet partner's policies
Speed to market is important, and
strategic alliances greatly improve that
speed.
Partnerships facilitate access to global Not enjoying all the profits, have to
markets. share the profits
It can be said that the alliance cannot be missed. Alliance is basically made between
countries, organizations, or union associations to achieve some common interest.
Here, we can also see that this alliance works for both organizations as both are
looking for ways to make toys more sustainable or eco-friendly so to speak. Here we
can see that the first organization, Wah Shing's, sees eco-friendly toys as the future of
this industry. It has several manufacturing plants in China and is, therefore, able to
produce at a low cost. Horizon, on the other hand, is a relatively new organization but
it has that technology and was born with fuel cell technology. Hence, we can say that
here alliance is based on needs and requirements with a common goal. An
organization with productive capacity comes along with an organization with the
technology the forerunner is looking for. Therefore, it can be said that this is an
alliance not to be missed.
2.
No. I think it is better for both companies to have an alliance than an acquisition
because it will save cost. Wah Shing is a large-scale manufacturer most skilled at
advanced toy development and Horizon seems to be more focused on new
technologies that can be applied. It is likely that the management skill best suited to
the objectives of each company will result in conflicts if one company owns another.
Alliance management is always easier than acquisition and cost-sharing, learned skills
can be reversed more easily.