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Swot Analysis Strengths - Mogen, Inc

This document provides a SWOT analysis, PEST analysis, and Porter's Five Forces analysis for MoGen, Inc. The SWOT analysis identifies MoGen's strengths as efficient operations and streamlined processes. Weaknesses include low profitability and lack of international experience. Opportunities lie in artificial intelligence, growing markets, and international expansion. Threats include increasing costs and buyer bargaining power. The PEST analysis examines political stability, inflation, employment, demographic trends, social awareness, R&D investment, e-commerce infrastructure, and production costs. The Porter's Five Forces analysis finds high rivalry due to market fragmentation. Barriers to entry are low. Substitute and supplier power are low

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158 views

Swot Analysis Strengths - Mogen, Inc

This document provides a SWOT analysis, PEST analysis, and Porter's Five Forces analysis for MoGen, Inc. The SWOT analysis identifies MoGen's strengths as efficient operations and streamlined processes. Weaknesses include low profitability and lack of international experience. Opportunities lie in artificial intelligence, growing markets, and international expansion. Threats include increasing costs and buyer bargaining power. The PEST analysis examines political stability, inflation, employment, demographic trends, social awareness, R&D investment, e-commerce infrastructure, and production costs. The Porter's Five Forces analysis finds high rivalry due to market fragmentation. Barriers to entry are low. Substitute and supplier power are low

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anon_124852542
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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SWOT ANALYSIS

Strengths - MoGen, Inc.


Strengths are the Mogen Bond capabilities and resources that it can leverage to build a
sustainable competitive advantage in the marketplace.

(- Streamlined processes & efficient operation management)

Mogen Bond is one of the most efficient firms in its segment. The credit for the performance
goes to successful execution and efficient operations management.

Weakness- MoGen, Inc.


Weaknesses are the areas, capabilities or skills in which Mogen Bond lacks. It limits the ability of
the firm to build a sustainable competitive advantage.

(- Low profitability which can hamper new project investment)

Even though Mogen Bond financial statement is stable, but going forward Mogen Bond 5-7%
profitability can lead to shortage of funds to invest into new projects.

(- Little experience of international market)

Even though it is a major player in local market, Mogen Bond has little experience in
international market. According to Kenneth Eades, Alex Holsenbeck , Mogen Bond needs
international talent to penetrate into developing markets.

Opportunities- MoGen, Inc.


Opportunities are macro environment factors and developments that Mogen Bond can leverage
either to consolidate existing market position or use them for further expansion.

(- Developments in Artificial Intelligence)

Mogen Bond can use developments in artificial intelligence to better predict consumer demand,
cater to niche segments, and make better recommendation engines.

(- Growing Market Size and Evolving Preferences of Consumers)


Over the last decade and half the market size has grown at brisk pace. The influx of new
customers has also led to evolution of consumer preferences and tastes. This presents Mogen
Bond two big challenges – how to maintain loyal customers and how to cater to the new
customers. Mogen Bond has tried to diversify first using different brands and then by adding
various features based on customer preferences.

(- Lucrative Opportunities in International Markets)

Globalization has led to opportunities in the international market. Mogen Bond is in prime
position to tap on those opportunities and grow the market share.

Threats- MoGen, Inc.


Threats are macro environment factors and developments that can derail business model of
Mogen Bond.

(- Increasing costs component for working in developed market because of environmental


regulations)

Mogen Bond has to deal with these costs as governments are trying to levy higher
environmental taxes to promote cleaner options. For Mogen Bond it may result into higher
logistics costs and higher packaging costs.

(- Increasing bargaining power of buyers)

Over the years the bargaining power of customers of Mogen Bond has increased significantly
that is putting downward pressure on prices. The company can pursue horizontal integration to
consolidate and bring efficiencies but I believe it will be a short term relief. According to
Kenneth Eades, Alex Holsenbeck , Mogen Bond needs fundamental changes to business model
rather than cosmetic changes.

PEST ANALYSIS

Politic
(- Transition of Government and Changes in Policy)

There is consistency in policy making from one government to another. Secondly governments
from all parties adhere to the treaties made by the previous governments.

(- Political Governance System)


Based on the information provided in the MoGen, Inc. case study, it seems that the country have
a stable political system. Mogen Bond can make strategies based on the stable political
environment.

ECONOMIC
(- Inflation Rate)

The inflation rate can impact the demand of Mogen Bond products. Higher inflation may require
Mogen Bond to continuously increase prices in line of inflation which could lead to lower levels
brand loyalty and constant endeavors to manage costs. Cost Based Pricing could be a bad
strategy under such conditions.

(- Employment Rate)

If the employment rate is high then it will impact Mogen Bond strategies in two ways – it will
provide enough customers for Mogen Bond products, and secondly it will make it expensive for
Mogen Bond to hire talented & skillful employees.

Social
(- Demographic Trend)

The demographic trend is one of the key factors in demand forecasting of an economy. For
example as the population of USA and EU is growing old the demand for products mostly
catering to this segment will grow. Mogen Bond should consider demographic trends before
new product developments and integrate features that cater to this segment. As population is
ageing it will require less tech intensive products.

(- Level of Social Concerns & Awareness in Society)

Higher level of social concerns in the society often result higher consumer activism and pressure
from non-governmental organizations, & pressure groups.

Technological
(- Research and Development Investment Levels)

If there is high level of investment in technology development sector then there are high
chances of building a self sustaining ecosystem that drives innovation. Mogen Bond can
leverage such a situation to hire the best people in business.
(- E-Commerce & Related Infrastructure Development)

As E-Commerce is critical for Mogen Bond business model. It should evaluate the e-
commerce infrastructure, technology infrastructure etc before entering a new market.

(- Cost of Production and Trends)

Mogen Bond should assess - What are the cost of production trends in the economy
and level of automatization. We at EMBA Pro believe that in near future the sector most
disrupted by technological innovation is manufacturing and production.

Porter Five Forces Analysis of Mogen Inc


Degree of Rivalry among competitors:
We can say that the industry has a high level of rivalry among rivals given that the market is
fragmented and there are a a great deal of gamers existing separately with their particular
service designs. The reality that no large firm has actually entered this Porters Analysis of
Mogen Inc case service adds to the high level of degree of competition among market
players.Since the services being provided are mainly comparable, the lack of differentiation
offered by market players further increases the degree of rivalry amongst market players.

Threat of new entrants:

The market has a high danger of new entrants since it does not need high investment in
innovation to get in the market. With no economies of scale being seen in the industry due
to the lack of larger players, the industry uses extremely low barriers to entry.
Threat of substitutes:

The dangers of alternative might be low offered the truth that car washing does not
particularly have substitutes. While the principle may have various types of cars and truck
Porters Analysis of Mogen Inc such as self-service car washes and automatic car Porters
Analysis of Mogen Inc, however the general principle of automobile wash does not have
alternatives.
Bargaining power of suppliers:

The bargaining power of the provider is rather low provided the reality that there are a a
great deal of providers in the cars and truck wash industry. With the lack of supplier
agreements and consumer commitment, the supplier has a low individual power.
Bargaining power of buyers:

With the market having a large number of suppliers offering services with their particular
rate, quality and uniqueness, the customer can easily change between suppliers.
Considering that brand switching is refrained from doing at a high expense to the client, the
market has a high bargaining power when it comes to the purchaser.

Buyers are not faithful to any specific brand name while at the very same time the
alternative of washing automobiles at homes likewise exists which includes practically no
financial cost to the buyer. This additional boosts the bargaining power that the buyer has in
the industry.

We can conclude from the market analysis that the cars and truck wash industry appears to
have a high degree of rivalry is high while at the very same time there are no clear
substitutes to automobile washing. The power of the supplier is low while the buyer has a
high bargaining power. The risk of new entrants is high due to the reality that a low level of
investment is needed for getting in the business however a clear absence of brand name
commitment makes this an enticing market especially as no player has actually handled to
develop a prominent position for itself until now.

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