Cosway SWOT Analysis

Strength

Cosway deals in a wide variety of products that provides opportunities for expansion. The company deals in a wide variety of cosmetic and beauty products, manufacturing products soap, cleaning and toilet preparation manufacturing supplies. The customer has managed a big customer base that makes it easier to expand and dominate new markets (IncFact, 2020). Another strength is that the products are used on a daily basis and therefore in constant demands. Since people use cosmetic and beauty products on a daily basis, the company has the customer base needed to remain competitive. The company has established strong relationships with its customers which give it control over pricing (IncFact, 2020). Cosway sets ideal prices for its products that give their customers value for their money. When used as a differentiation strategy, Cosway is able to set lower prices than its competitors and this makes it easier to attract new customers and retain existing ones.

Weaknesses

The company has a poor marketing strategy that relies on good testimonials from customers and its agents. Although word of mouth and testimonials help to communicate the company message, Cosway should invest in different avenues of marketing to ensure its message reaches as big an audience as possible (IncFact, 2020). The company’s marketing strategy also limits its reach when attracting new customers. In addition, the company has limited trademark applications hinders innovation. The company has also failed to make market entry difficult for other organizations and which increases competition. The company has a large market share and influence to control prices as well as influence customer preference. Despite this however, different companies have come up in Coswa’s market and present more competition.

Opportunities

The company has a strong brand name which makes it easier to differentiate its products from the competition. Differentiation is important because of the wide variety of similar products in the market that customers have to choose from. Cosway also has a large market share which creates constant demand for its products (CCL, 2020). Reliable customers that are constantly seeking out Cosway products create opportunities for growth while still helping the company to remain competitive. Furthermore, advances in technology create room to innovate and gain a competitive advantage. Customers’ needs are constantly shifting and Cosway has to innovate its products in order to remain relevant in its market (Cosway, 2020). Advancements in technology make it easier for the company to assess its customers and determine what products are likely to do well. The company can also rely on technology to innovate its processes and product quality as well as introduce new products in the market.

Threats

The company faces stiff competition from other organizations offering similar or alternative products. Since the products that Cosway specializes in are in constant demand, different organizations come up seeking to take advantage of the lucrative market. Another threat is the risk of substitution. Customers’ needs are constantly shifting and the existence of alternative products in the market makes it easier for customers to shift their preferences and opt for products from the competitors (Zoom Info, 2020). The company also has to constantly innovate better ways to innovate in order to prevent its processes from harming the environment. A lot of raw materials are used up in the manufacturing process and Cosway must constantly assess its process to ensure that the least harm is caused to the environment in the process from manufacture to the time the product is made available to the customer.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

References

Cosway Corporation Limited, (2010) “Costway Annual report” retrieved from,             https://www1.hkexnews.hk/listedco/listconews/sehk/2010/0827/ltn20100827476.pdf

Cosway, (2020) “About Cosway” retrieved from, https://cosway.com.my/

IncFact, (2020) “Cosway revenue, growth and competitor profile” retrieved from,             https://incfact.com/company/cosway-carson-ca/

Zoom Info, (2020) “Cosway” retrieved from, https://www.zoominfo.com/c/cosway-        company/29822450?__cf_chl_captcha_tk__=9e38fc0d2745c43703b53d3680708ae547bae3e1-           1604420868-0-Aa9R-