This research analyzes the MEM Company, Inc. case. The findings of the analysis are presented in discussions defining the central issues, identifying strengthsweaknesses opportunitiesthreats (SWOT), developing alternative strategies, evaluating alternative strategies, and selecting the most appropriate strategy.
The central issue in this case is the need to stimulate sales at MEM. Sales were flat over the most recent operational year reported in the case. Important subsidiary issues exist in relation to this central issue. These subsidiary issues must be addressed as a part of a comprehensive strategy designed to deal with the central issue. These subsidiary issue are as follows:
1. The company's distribution structure is being compromised by changes in the cosmetics industry. The distribution structure may be a factor in the flattening of sales revenues at the company.
2. Both the company and the industry rely heavily on new product introductions to maintain sales revenue growth. The company, however, has a very haphazard approach to new product testing, and this approach may be compromising the effectiveness of the company's new product introductions. This approach may be exerting an adverse effect on sales revenues. 3. The company has relied primarily on a product positioning strategy that emphasizes the mediumpriced market segment. There are some indications that the greatest growth potential may be in the exclusive segment. A continuation of the existing product positioning strategy may constrain future growth in sales revenue at the company.
4. The MEM Company traditionally has been chary in relation to advertising expenditures. This approach to advertising and promotion has not harmed sales revenues at the company in past years; however, there are some indications that this situation is changing.
The company's strengths, weaknesses, opportunities, and threats are identified as a means of streng...