The current position of Vitalograph is assessed through both SWOT (strengths, weaknesses, opportunities, and threats) and financial analyses. The key issues confronting the company are identified. Future strategies for Vitalograph are recommended with respect to products, markets, geographic locations, participative structure, and retrenchment. The company is also assessed within the contexts of the five forces model, value chain analysis, and PEST (political, economic, social, and technological analysis).
The non financial aspects of Vitalograph's current position are addressed in a SWOT analysis in this section. Following the SWOT analysis, the current financial status of the company is reviewed.
Vitalograph's strengths include a geographically diverse marketing base. The company has strong market positions in several countries. Another company strength is the tailoring of the organization of the selling function to the characteristics of specific country markets.
A major weakness of the company is a lackluster new product development record. The company's existing products are of good quality and are well received by customers. Nevertheless, complacency in product development could endanger Vitalograph's future. Unsophisticated and all but nonexistent marketing research is also a weakness of the company. The fragmented and relatively high priced American market offers and opportunity to Vitalograph. New and updated products offered at relatively low prices could enable Vitalograph to improve its market share in the United States. Eastern Europe also represents an opportunity for the company, although the markets in that region may take longer to develop.
A threat to the company is the increasing competitiveness of the lung function analysis machine market. This threat is particularly acute in the United States, and improved Japanese products could intensify in the European markets that are vital to Vitalograp...