HSB SPEAKERS LTD.

GROUP 1

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Contents
Executive Summary Introduction Strengths Weaknesses Opportunities Threats Should HSB enter Japan? 3-6 7 8-9 10 11 12 13 - 14

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SYNOPSIS/EXECUTIVE SUMMARY
Contrary to widely held views about sole proprietorships being risky and less attractive, HSB Speakers LTD had a couple of strengths commitment to quality exceptional expertise active research and development department, a differentiation focus strategy goodwill from famous personalities from the worlds of both classical and popular music.

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SYNOPSIS/EXECUTIVE SUMMARY Contd

It was also opened to opportunities such as recruiting graduates from the local university, where it established a lectureship in sound science and taking advantage of alliances with local retailers and manufacturers to get its products into the Japanese distribution chain, if its feasibility studies points to entering the Japanese market as a viable venture.

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SYNOPSIS/EXECUTIVE SUMMARY Contd

HSB Speakers Ltd, however, faced some competition from both indigenous firms and some Japanese firms with large dominance in Africa. Its products are also very expensive. Its very nature as a sole proprietorship places the firm in not so a good position.

Their heavy investment in research and development has a potential of neglecting investment in other functional areas.
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SYNOPSIS/EXECUTIVE SUMMARY Contd

Given the revelations of its initial analysis, entering the Japanese market would not be a viable venture for HSB. These revelations are outlined below; If it has to do with consumer electronics, the Japanese take a basic/standard level of quality for granted. They prefer something distinctive, such as traditional African goods like Kente, Woodin and anything with a craft image, but obviously not electronics, which they have in abundance. The Japanese market for consumer electronics is saturated with new product innovation. There is also buyer fatigue in Japan. Finally, the Japanese distribution system is very complicated and it takes a long time to get products into the distribution chain.
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Introduction
SWOT analysis is a systematic identification of environmental factors and of the strategy that represents the best match between them. It is a useful technique for understanding your strengths and weaknesses, and for identifying both the opportunities open to you and the threats you face.

Used in a business context, a SWOT Analysis helps you carve

a sustainable niche in your market.
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STRENGTHS
Strengths are characteristics of the business that give it an advantage over others. Committed to quality. Companies that prioritize total quality management gain a competitive edge over others. Customers prefer high quality products that will last. They would, therefore, go in for HSBs products, which would result in higher sales and eventually higher profit margins. Active Research and development department they continually researched new and better ways of reproducing perfect sound. Any company that invests heavily in Research and Department will secure its survival. This is because it will always have new products and services, which will meet the ever changing demands and needs consumers.

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STRENGTHS Contd
Differentiation-focus strategy. It provided a differentiated product to a highly specified segment of the market. Successful product differentiation creates a competitive advantage for the seller, as customers view these products as unique or superior. Recognition of its expertise across the globe. It was even praised by some ten famous personalities from the worlds of both classical and popular music. This is goodwill, and one of a companys greastest assets. Export presence the USA and other African countries. They can, for this reason, afford to reduce prices in Ghana and still remain competitive, without necessarily running at a loss.

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WEAKNESSES
Weaknesses are characteristics that place the business at a disadvantage, relative to others. First, HSBs products are very expensive. This meant that only a few elite could afford its products. This could reduce its market share and affect its profits and overall attractiveness, in the long- run. Again, by its very nature as a sole proprietorship, HSB comes with all the disadvantages of a sole proprietorship, all other things being equal. Finally, its obsession with quality caused it to continually research in new, better and innovative ways of producing. These excessive and heavy investments in research and development, if not checked, could lead to neglecting other functional areas, which might also need substantial investments.
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OPPORTUNITIES
Opportunities are external chances to improve performance (e.g. make greater profits) in the environment. First, HSB recruits graduates from the local university, where it has established a lectureship in sound science. In effect the company employs the right kind of staff, with the requisite skills and expertise. The company, therefore, does not incur extra cost for training its staff since most of this is taught at the school. Besides, HSB could take advantage of the alliances with local retailers and manufacturers to get its products into the Japanese distribution chain (market), if its overall feasibility studies points to entry the Japanese market as a viable venture.
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THREATS
Threats are external elements in the environment that could cause trouble for the business. First, HSB competes with three other Ghanaian firms - Ascension, Bukom Sound Systems and Obazen. This makes HSB a perfect competitor and for that matter, a price taker. It would have to take the price as will be determined by the market forces. This has a potential of affecting profits.

Again, the hi-fi market has a large dominance of some Japanese firms, some of which have factories in Africa and manufacture for export.

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SHOULD HSB SPEAKERS LTD ENTER JAPAN?

Entering into the Japanese market would not be a viable venture for HSB LTD, given the revelations of its initial analysis. These are discussed below; The Japanese take a basic/standard level of quality for granted, if it has to do with goods like consumer electronics. It is important to note that most of the worlds best hi-fi systems such as Sony, Aiwa and Panasonic are all made in Japan. The others, such as Sanyo and LG also originate from other Asians countries such as China and South Korea. The feasibility study further revealed that they would prefer something distinctive, such as

traditional African goods like Kente, Woodin and anything with a craft
image, but obviously not electronics, which they already have and tired of.
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SHOULD HSB SPEAKERS LTD ENTER JAPAN? Contd

The Japanese market for consumer electronics is competitive with new product innovation. Given that they have the best of hi-fi systems the world knows, and are still innovating, it will render HSBs entry into that market not an attractive investment. There is some evidence of buyer fatigue in Japan. For this reason, companies are

reducing the variety of products on offer and are rather increasing the time it takes
to get new products to the market. Against this backdrop, it will not be a prudent thing to go and produce in a country like Japan. Finally, the Japanese distribution system is very complicated and it takes a long time to get products into the distribution chain.

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Thanks for your attention!!!

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