Tweeter

Exhaustive SWOT

Strengths

 Good business philosophy built on commitment to value and quality, by offering high-end audio and video components.

 Good business philosophy built on commitment to optimal customer service, encompassing a knowledgeable sales staff.

 Tweeter was the first and only company to launch an APP policy.

 Joining the PRO (Progressive Retailers Organization), Tweeter was able to obtain prices from manufacturers that were comparable with those obtained by its larger competitors.

 Growth in annual sales (from $35 million to $82 million) as well as expansion from 13 to 21 stores across New England and Rhode Island.

 More effective marketing mix (using TV and radio rather than print), conveying a message that Tweeter is competitive with their pricing.

 100-page seasonal Buyer’s Guide with Tweeter product descriptions.

 High quality facilities (sound proof audio room for example), not prominent among competition.

 Tweeter offers a high-end line of products, as well as a standard line of products.

 The acquisition of Bryn Mawr and the capitalization of brand recognition within the new markets Bryn Mawr is found in.

 Every day fair pricing strategy, as well as the adoption of other policies other than the “sale” to communicate a price competitiveness.

Weaknesses

 The overall cost of operating the APP policy doubled in 1995.

 Tweeter attracts a specialized market, which does not attract a substantial portion of the market.

 APP detracts from Tweeter’s i

 mage, since it would not need APP if it were essentially competitive like other specialty superstores.

 Tweeter is only a local chain of stores, in comparison to national chains such as Circuit City.

 APP is limited to the database entries it is based upon (newspaper-based), which may exclude other important methods of advertisement or un-advertised in-store sales.

 Bryn Mawr did not see significant impact on sales with the use of APP.

 Smaller floor space than its leading competitors (square feet).

 Higher prices for color televisions, which represent 24% of sales, in comparison to competition.

 RPP policy only covers the price difference at a rate of 100%, compared to 110 to 200%, which is offered by other chains.

 APP incurs large costs due to market research of the products.

 A small selection of lower end products.

 The human element that may cause errors in the price protection program.

Opportunities

 5.6% annual growth rate as well as 30% retail margins.

 Few people know (or even understand) what the APP policy is about.

 Approximately 50% of customers who want to purchase electronics will visit a specialty store or electronic superstore, rather than mass merchants, department stores or mail order houses.

 70% of Tweet’s customers were quality/service customers (who represent 10% of the total market), so there is much room to expand into the remaining markets, which represent 90% of the consumer market.

 If price were not an issue, people would prefer going to Tweeter.

 With a population of 13.2 million, New England represents 5% of the U.S. consumer electronics market, which is quite substantial.

 Montgomery Ward’s acquisition of Lechmere induced many consumers to believe that the level of customer service and salesperson knowledge would decrease appreciably under MW’s control, thus opening a pool of customers that may be attracted to Tweeter’s superior customer service.

 The