Final Project: Situation or SWOT Analysis

A SWOT analysis is a tool used to see where a company is as far as reaching their objectives. SWOT stands for strength (S), weaknesses (W), opportunities (O), and threats (T). In doing this, a company can see what it needs to do to reach their objectives and see what obstacles will keep them from achieving this. Since 1908, Wegner has created quality products with Swiss craftsmanship. In doing a SWOT analysis for the Wegner company, we can assess where it is today and where it could be in the future.

Strengths

• The Wegner name brings tradition and quality that goes back since 1908 after the company was formed after it made its first Swiss Army Knife. Because of the quality of not only their knives, but watches as well, the Wegner name has established itself as creating quality reliable products.
• The branding Wegner has created for itself with this Swiss Cross emblem is recognized worldwide.

Weaknesses

• There are many types or backpacks on the market right now and Wegner must make itself stand out from the rest.
• Currently, there is a lack of advertising for its Wegner backpacks. Right now it seems like the only advertising going for it is through word of mouth.

Opportunities

• Wegner is taking the opportunity to move into the backpack market.
• According to Marketing: An Introduction, online social networks are “online communities where people socialize or exchange information and opinions.” They say that “social networking media range from blogs to social networking Web sites, such as Facebook and YouTube, to entire virtual worlds, such as Second Life and Gaia Online.” (Marketing: An Introduction, Armstrong & Kolter, Pg.  142) They believe that marketers “are working to harness the power of these new social networks to promote their products and build closer customer relationships. Instead of throwing more one-way commercial messages at ad-weary consumers, they hope to use social networks to interact with consumers and become a part of their conversations and lives". (Marketing: An Introduction, Armstrong & Kolter, Pg.  143) Because of their products being advertised by word of mouth, setting up a social media site would help the consumers who like Wegner products not only communicate with each other, but it would also help the company communicate with their customers as well.

Threats

• There is always competitive pricing a company has to deal with when it comes to their products.
• Because of the lack of advertising done for their backpacks, there is always the fear that it won’t do well in this market.