Worms, Inc.
SWOT analysis: | Positive | Negative | | Strengths: | Weaknesses: | Internal | *Exclusive rights to sell a line of flies made by artisans*Sells all forms of real bait *Loyal following of customers*Company name is immediately recognizable*Great distributions through franchises*Bait is guaranteed*Very strong knowledge about worm farming*Low fixed costs*Fatter Worms: seem to work better*actively pursuing R&D. Example: R&D department doing experiments that indicate a worm can be engineered that will be 33% more successful at attracting trout & bass *Franchises in worm farming, higher supply | *Only sold through a catalog*Limited product lines*Market share is decreasing *No contracts for mass produced lures*Management Can be narrow-minded*Line workers think Managers are “old school” & tend to exhibit self-limiting behavior*No artificial bait*Worms cost more for consumers*limited suppliers | | Opportunities: | Threats: | External | *Current economic times (recession) can induce people to fish for food* 80% of market share can be gained.*low interest rates on loans*focus on healthy eating*Technology—internet sales*high price of fish in stores | * Potential for other companies to do R&D*Other companies are expanding what they are selling beyond fishing supplies*other companies with larger selection of bait*not getting the independent artisans products*are these exclusive lines of flies patented or trademarked so others can’t copy them?(this is part of what makes the company a differentiation company—having an exclusive line of flies)* Customers not willing to pay more for worms*Water/fish contamination concerns that may result in fewer people fishing and fishing supply demands decrease*new laws and regulation affecting fishing *low price of fish in stores |
Porter’s “Five Forces” Analysis: 1. Threat of New Entrants: Very low Barriers to Entry, according to the Worm Study, there are “tens of thousands” of independent shops
Porter’s “Five Forces” Analysis: 1. Threat of New Entrants: Very low Barriers to Entry, according to the Worm Study, there are “tens of thousands” of independent shops