Tuesday, April 16, 2019
Swot Analysis Essay Example for Free
Swot Analysis EssayTop Gloves strengths and the opportunities available to it outbalance its weaknesses and the threats to its business. Strengths. One of Top Gloves competitive edge is its size and wide product range. This is in line with groups strategy of becoming the one-stop glove sourcing centre for glove users. Its size confers on it economies of scale and also the ability to expand upstream. Weakness. We can identify only one weakness in Top Glove. Being an OEM manufacturer, it does not have any products that carry its own brand name. Its size and toughened growth could also work against its favour as it makes it more difficult for management to keep a close eye on all its operations. This is demonstrated by the recent illegal labour issue. Opportunities. Opportunities collapse for Top Glove. Its expansion plans will enable it to ride on the increasing global demand for arctic gloves and the outsourcing trend by MNCs. Top Gloves size also places it in a skilful posit ion to undertake MampAs, which argon likely given our belief that the local industry will get down more consolidation. Threats.The glove industry has low barriers of entry as only RM1m-1. 5m is needed to start a line. That said, although it is cheap to enter the industry, new players may not be competitive as they have to agnise themselves from other players and need to compete in terms of volume in order to enjoy economies of scale. hard-hitting expansion by the bigger players also poses the threat of an industry glut. Price and availability of latex are also sources of concern given that latex makes up more than 50% of the groups costs. To justify the risk, Top Glove has expanded upstream by acquiring its own latex processing plant.
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