92%(25)23 out of 25 people found this document helpful
This preview shows page 6 - 8 out of 15 pages.
built a good image and customer satisfaction was the key issue. The products that are supplied by the company are of high quality and consumers have developed a lot of trust in the company products. Though there are other many competitors and especially in the electrical field, Harvey Norman Company has managed to counter such because of a strong brand name.Another major strength of Harvey Norman Company is that it is the largest retailer of electronics and other office appliances in the world. It has many stores in many regions and this has made it popular. It has therefore managed to attract many customers and its market share is really big. It has also continued to grow over the period and now it has stores in New Zealand, Slovenia, Croatia, Ireland, Singapore and Malaysia. The fact that it began in Australia did not prevent the founders to spread it in other regions because they really had a dream of an international company. The company can therefore utilize its popularity and capture more and more consumers in the regions it operates.
The Promotional offers that are conducted by the company also act as strength because they have enabled it to capture new customers. The offers make it possible for many people to sample a brand and if they find that it is excellent they too become regular customers. The company is big and thus the cost of conducting promotional offers does not affect its profit margin and it has thus managed to increase its market share.The company enjoys a strong and excellent work force which is well supported by the management. The founders of Harvey Norman company set a good working culture it has since been passed on to other employees who join it. They advocate for dedication and team work which has seen then the company enjoy a profitable venture (Hannelly, 2010). They ensured that any employee was well appreciated and remunerated so as to motivate him/her.WeaknessesThe major weakness of the company is that it is very dependant of its chairman and if he pulls out then its performance might be affected. Gerry Harvey is the chairman and he is the person who drives the company. He makes crucial decisions for it and this has really been a big challenge for the company when issues of resignation or transfer are concerned. It will be good for the company to try and involve other people in the management process so as to eliminate the fear of failure id Gerry Harvey is absent.Another weakness of the company is that it has continued to lose customers to competitors who emerge in the market. Though it is hard to maintain a huge market share, constant loss ofcustomers might have detrimental results. The company needs to devise a strategy of maintaining its market share. It can improve the quality of its products or even offer them at adiscounted price.