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Political:
1. Due to operation in EU & UK, Silver Cross (SC) has to comply with EU & UK legislation and regulation.
2. SC will have to face different regulations and political regimes – some stable and supportive of business
others less stable and less pro business due to expansion in USA, South-east Asia, and Baltic states.
Economic:
1. Economic recession may reduce spending on up market baby products and increase the demand for
second hand baby equipment.
2. Greater global competition is creating the need for differentiated products and offers opportunity to
increase market share for Silver Cross’ highly varied and differentiated products.
3. Steady growth in baby transport and nursery equipment market since 2003 and predicted growth has
helped Silver Cross to exploit this opportunity by expanding its distribution network and product range.
4. Estimated value of baby product market in UK is £1 billion which is the main market of operation for Silver
Cross and is predicted to rise.
6. High consumer confidence – spending on expensive and high quality baby products.
7. Increasing fuel prices will drive up distribution cost for Silver Cross in UK & worldwide.
8. Exchange rates fluctuations will impact trading and transactions costs and make it difficult to forecast
revenue for Silver Cross in overseas market.
9. Silver Cross needs to consider export tariff for each export market.
Socio - Cultural:
2. Increase in no. of multiple births due to clinical birth treatments as a consequence of late parenthood.
5. Older, affluent, well-informed and style conscious parents spend considerably on differentiated and
stylish baby products.
6. Two-earner households – higher disposable income and higher consumer spending on baby
products.
8. Frequent use of car and other forms of transport like buses, metro rails, air flights etc.
9. Increased consumer mobility for work & leisure activities has fueled the demand for baby travel systems
and other multi-purpose products.
10. Consumers are becoming tech savvy and there is growing communication between them through
blogs, forums, and social networking platforms about their needs, experiences, product information &
reviews.
13. Baby boom in UK – increasing no. of babies less than two years of age.
14. Greater celebrity following due to media coverage – celebrity endorsements for baby products.
15. Impact of style conscious market on design and manufacture of baby products.
Technological:
2. Increased access of consumers to broadband due to low cost and greater availability.
3. Rise of internet & online social media – increases brand visibility and awareness, provides product
information to customers, offers new and alternative promotion & communication opportunities through
integrated marketing campaign & helps in getting customer feedback.
4. Mining & warehousing of data from online content and other sources & increasing use of Marketing
Information System (MKIS).
5. Migration towards online retailing, EDI, and EFTPOS due to advancement in technology.
6. Use of IT based logistics systems for efficient delivery to wide distribution networks – 200 retail outlets in
UK & 260 Babies ‘R’ Us stores in US alone along with other countries of operation.
7. Use of highly mechanized and state-of-art machinery to automate the production process.
8. Technological innovation has enhanced the development of multipurpose products in baby transport
accessories and home care sectors.
Environmental:
1. Greater environmental concerns over production and manufacturing processes such as energy
consumption, emission & discharge, waste disposal, and recycling.
2. Greater legislation, regulation and conformance to standards with regards to impact on environment such
as UK Environment Protection Act and ISO 14000 certification.
Legal:
2. Silver Cross owner William Wilson has over 30 patents registered to his name.
3. Increased emphasis on safety in baby transport market as a result of increased emphasis on health and
safety legislation in developed countries.
4. Increased regulation of advertising – especially when aimed at children – in developed countries like
Advertising Standards Authority (ASA) in UK.
SWOT ANALYSIS
Strengths Weaknesses
Opportunities Threats
10. Foray into social media like specially 11. Increasing preference of parents for
designed ‘Days Out’ site for parents, presence on second-hand well maintained baby
Facebook helps parents to interact, share ideas & equipments.
product reviews, and get appropriate information
regarding their baby product needs from each 12. Economic recession – reduced
other & with Silver Cross. disposable income and job insecurity will result
in decline in demand for up market baby
11. Plans to use ‘Days Out’ site for targeted products and increase the demand for second
email marketing to its registered users. hand baby products.
12. Integrated marketing campaign provide 13. Social media though brings lot of
customers with product information, reviews, advantages to the brand but at the same time
usage experience, comparisons and updates can quickly dispense any negative publicity
about the same.
13. Digital media platform provide
opportunity to Silver Cross to build brand
strength, increase brand awareness and deliver
the brand message effectively to existing and
potential customers.