BRITECH Limited Company Analysis - Paper Example

BRITECH Limited is a manufacturer of specialist digital radio components in the electronics industry. Its co-founders are Michael Mark and John Colley who are the only shareholders and directors of the company. The business pays significant attention to research and development to develop marketable patents, identify, and exploit opportunities in the retail electronics industry. Michael and John are planning to seek investment from a venture capitalist with the aim to raise capital to pursue personal projects in the fields of applied science and technology. However, it is essential to performing a SWOT analysis (Hollensen, 2015) to assess the current situation.

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BRITECH Limited SWOT Analysis

According to Bohm (2009), a SWOT analysis enumerates the strengths and weaknesses of an entity, the opportunities in the sector that it can take advantage of and threats that can ruin its business.

Strengths

The first strength of BRITECH Limited is its emphasis on research and development. Particularly, through its close work with the University of Exeter, the company has been able to uphold innovation and the leading-edge development designs that earn it a competitive advantage in the electronics sector. Second, the company has low production costs. Notably, it has manufacturing contracts with Chinese manufacturers who produce the radio components at a low cost.

Weaknesses

Nevertheless, BRITECH Limited has several shortcomings. First, ii offers unattractive working environments, a situation that leads to high employee turnover. Second, the company provides long lead-time between new digital radio components being conceived and the requirement of production prototypes. The third weakness of this company is its outdated technology. Mainly, its systems are facing challenges of the ever-increasing use of manufacturing technology that it is even planning to stop production of the digital radio components by the end of 2017. Apparently, even its production employees have complained about the entitys failure to integrate the product design with highly specialist machinery necessary in the manufacturing process. The fourth weakness of the BRITECH Limited is poor waste disposal systems accompanied by high levels of wastage. Corruption is another significant weakness of the company. Notably, its auditors present false financial statements, its production manager pays unregistered waste businesses to dispose of toxic waste, and its employees manipulate the production plans.

Opportunities

Despite all these weaknesses, BRITECH Limited has some opportunities it can take advantage of to regain its competitive edge in the electronics sector. First, the waterproof radios are a goldmine for the company. Apparently, its current pricing strategy can enable it to sell them cheaply, which can allow them to penetrate the market easily. Second, the company has a pending patent on a new decoding program that will enable digital radios to use the same power as the analog radios thus saving power. The company can focus on this technology to manufacture new digital radios using that system by speeding the construction of the new factory in Cornwall. Finally, the home management system is another component that the company has an opportunity in which to expand. Furthermore, its manufacturing costs are estimated to be one-half of the existing systems. Therefore, investing in the systems can translate into high profits for the company.

Threats

Nevertheless, the company is facing some threats that continue to lower its competitive advantage in the electronics sector. First, the high rate of staff turnover and absenteeism denies the company adequate skilled labor necessary for the manufacturing processes. Additionally, poaching of the talented research employees poses a threat of loss in its unique ideas and lead in the highly competitive areas such as the new digital radio technology. Second, the company faces the threats of failing markets, particularly for the digital scanners.

Conclusion

To conclude, it is evident that the companys weaknesses and threats overpower its strengths. Nevertheless, it has numerous opportunities it can take advantage of to turn around its business and regain its competitive edge. Moreover, capitalizing on its strengths will play a significant role in ensuring it remains a leader in the electronics sector.

References

Bohm, A. (2009). The SWOT analysis (pp. 978-3640424191). GRIN Verlag.

Hollensen, S. (2015). Marketing management: A relationship approach. Pearson Education.