Swot Analysis

Internal company strength and weakness

STRENGTH
▪ Product Quality of Walton

When it comes to providing world class refrigerator to the customer of this South Asia Walton is one of
the best. They have a modern and fully automated plant which is one of the biggest in south Asia. While
manufacturing refrigerators they always try to make sure to use the latest technology and high-quality
compressors. They try to ensure longer cooling system while also being concern about consuming a lot
of energy. They condenser they made is 100 percent cooper according to the international standards.
They have a German technology based ultra-modern compressor factory in its Walton Hi-Tech Industries
Ltd at Chandra in Gazipur.

▪ Wide range of product

Walton offer a wide range of producrt. They offer Refrigerator, mobile,tv,Comnputer, motorcycle, air
conditioner ,generator etc .So By offering a wide range of product Walton make sure to support its
original product. And also, Walton can aim to attract new Indonesian customer by offering at a different
target market. As they already have a wide variety of product it wouldn’t be any problem for them .

▪ Strong Universal Presence

Walton exports its products to 20 different countries of the world. Among all of them Walton has a
strong presence in Nepal, Indonesia,China,Japan and Bhutan .With this enormous success Walton is
having right now , Walton forwards looks to extend its marketing coverage towards other international
market .This would bring Walton in direct competitions with other international brand . Walton is
planning to build an exclusively new refrigerator manufacturing plant.

▪ Strong International Recognition

Walton has achieved many international award throughout the year they are doing business .They have
a Golden Globe Tiger Award 2015, DHL-Daily Star Bangladesh 15th Business Award 2014 for Best
Enterprise in Bangladesh, Asia Best Employer Brand Awards in 2015, The Global Brand excellence Award
in 2014 for brand excellence in consumer electronics, 1st Prize for Premier Pavilion Category at DITF-
2013, Best Sponsor Award-2012, Creative Media Ltd. BABISAS Award-2012, Best Brand (Refrigerator)
Award-2011, 2nd Prize for Premier Pavilion Category at DITF-2011, 2nd Prize for Premier Pavilion
Category at DITF-2010, 1st Prize for Premier Pavilion Category at DITF-2009, 1st Prize for Premier
Pavilion Category at CITF-2005.

▪ Low Price Quality product

Walton is one of the few company who offer quality product at a low price .
Strong Market knowledge

As Walton already offering product in the international market Walton has sufficient amount of
information abou the international market

WEAKNESS
Skilled Manpower

As the technology industry is still in the growth stage in Bangladesh,there is alwaws a shortage of skilled
woker who has the proper knowledge about the components

Proper monitoring system

Walton doesn’t have a structured monitoring system for their product .So if any of the components or
products has some sorts of defects in it ,sometimes it goes unnoticed which eventually result in a
negative product experience .It can also cause negative word of mouth

Reliability and Trust

As Walton try to offer product at a low price the customer has a reliability issue with their product .Even
though Walton has international recognition for offering good quality it is still struggling to survive in the
domestic market

Selective Speciliazitaion :

Walton offers product relatively at a lower price than any other companies in the tech industry .As
Indonesia already emerged emerged as a middle income country it has a lot of high earning customer
who are willing to pay more for a more stylish and best quality product.Being a middle and low income

Company Walton missing out on the larger portion of this high icome customer

Relatively new:

Walton started it commercial production from 2008 which is relatively new comparing to other
companies who are offering refrigerator in the mass market .Though the market share for Walton is
increasing day by day the process is really slow as Companies like Transtec,Samsung and singer already
offering good quality product in the market

Opportunities
Increasing sales in Major cities

Acccording to statistics of Walton group Walton has witnessed almost 58 % growth in the year 2017.By
segmenting the current refrigerator market effectively Walton can be the market leader of this
segment as the offer product at a lower price .
Sustainable economic growth

Bangladesh for the first time in its history has fulfilled all the criteria to be recognized as a developing
country .The Economic growth is increasing so people now can afford a good refrigerator which is a
huge opportunity for walton

Introduction of new products

Walton is one of the few distributor who offers a wide varity of products. So if the competitor try to
attck Walton with full frontal force it can easily hold on to their current market share by putting an
extra effort on their other product .

Threats
Unethical Competition

Even though Walton offer products at a relatively cheaper price at their selective distribution channel
and outlet , Some of the distributor still selling the used products or offering international refrigerator
at a cheaper price whice eventually hampering the growth maket of Walton refrigerator

Political Unrest

Due to the political situation of Bangladesh Walton sometimes faces transportation problem which is a
major problem for them .Government is changing their regulation quite a lit lately which is a problem
for Walton as they are the leading exporter of refrigerator in Bangladesh

Increasing Competitive Market

As Bangladesh is setting its footstep in the developing country,the huge growth of middle income
market segment attracting a lot of competitors in the current market.Without a proper customer
retention strategy Walton can loose the current market share

Increased Bargening power

Competition in the refrigerator market is increasing at a faster rate . So the customer now has a lot of
bargaining power over Walton . if the pricing goes wrong or targeting a wrong market segment Walton
may fail to retain their current customer base .

Implication of SWOT Analysis

The implication of swot in Indonesia for Walton will not be difficult task for Indonesia as indonesia
already emerged as a strong middle income country and the growth per capita is increasing day by
day,The implication of every element of swot is given below
Strength
As the urbansanitation and busier lifestyle helped to sustain a robrust growth in refrigerator volume
aplliances in 2017 walton can assume that it will still be in the growth in the upcoming years too .Walton
focus on the increasing makret growth .According to Unesco ,Indonesia has a 95.38 parcent literacy
rate .So as long as we are offering a good quality refrigerator price wouldn’t be issue. Walton should
give less imporantamce as the low price and also make sure that they are exporting the best quality
product in Indoneisa

Weakness

As being an international brand Walton will find it difficult to grabbing the market share in Indonesia
.As indonesian people being ethnocentric and Walton being a foreign company they will find it difficult
to create a proper brand image .So Walton should use proper integrated marketing tools to notify
customer about their product .They should use indoneisan celebrity endorsement make sure that the
indoneisan people are aware of their prouct benefits .Indonesian consumers has a low level of brand
loyal and consumers are more prone to switch brand

Opportunites

Indonesia is currently the world’s the 16th largest economy. It’s projected to be the fourth largest
economy in the world (by PPP) by 2050.As indoneisn consumer maket is price sensitive and Walton
offers good quality product at a lower price Walton can be the market challenger in indoneisa .and
also modern housewives and married women from age 25 to 35 are influencing the purchase of
household groceries and personal products in Indonesia . These two consumer groups are both
important and a growing consumer segment for consumer businesses, and Walton will need to
understand in order to tap into.walton should focus on the young people and the modern housewives
cause in indoneisa, they are the key decision maker within their families and communities .

Threat

As the Tariffs raised to increased 7.5-10 pct from 2.5-7.5 pct, Walton will find it difficult to offer product
at a lower price from the local competitors like PT. INTI SARANA MULTIGUNA,whirpool etc .Indonesia
also has a high inflation rate.As a result the cost of doing business in Indonesia is increasing .Walton
should offer Installment facility for their refrigerator in Indonesia. Indoneisa has a complex burecracy
system and also high logistics cost and lack of transparency

The consumer segment consumers ar sensitive to the rise of electricity costs, so they they always tro to
avoid the product which consume a high volume electricity products and they looking for efficient
products that add value '€” products that do tasks more efficient. As Walton products producing
extensive electricity saving fridge. Walton is offering fridge production line using R600a gas in their own
factory in Bangladesh with the financial assistance and supervision of UNDP, USAID and Department of
Environment. The Walton fridges are being manufactured following world standard and highest security
measures using huge electricity saving and environment friendly R600a gas so which is creating a major
impact for the indosian people as they like to save electricity