Interactive Simulation of Trinezza

Essay by Dawnyail September 2006

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1. What are the elements in the SWOT of Trinezza?

Strengths:

Product - Delivers practical features in a confident and sporty package. Their scooter is a reliable and economical mode of transportation. The technology of the product gives Trinezza an advantage over the scooters that are currently available in Sentonia.

Weaknesses:

Brand Identification - The Trinezza's company and their product are practically unknown to the Sentonia market.

International Experience - Lack of experience within the company to help make a transition like this.

Price - The Cynta carries a higher price tag than the competition, which will make it harder to sell than the lower priced competition.

Financial Resources - They have not been able to find financial investors in the company, therefore this might require an investment from Trinezza.

Production Capacity - The existing production capacity of 14,000 scooters per annum will be barley enough to meet the demand in the U.S.

market. Trinezza's mode of entry might be severely constrained by the ability to produce the required number of scooters.

Opportunities:

Foreign Competition - Lack of foreign competition in the Sentonia market is an important opportunity, and Trinezza could benefit from it.

Size of Middle Class - The growing middle class in Sentonia is a great business opportunity for Trinezza.

Threats:

Local Business Environment - The restrictive government policies of the Sentonia government prevent Trinezza from having either a wholly owned subsidiary or a majority joint venture.

Local Competitors - Strong local competitors are a major threat to Trineza. There are at least four competitors in Sentonia with market shares between 13 and 30 percent.

2. What are some advantages large companies have over smaller companies when choosing a mode of entry strategy?

Entering into any market involves the commitment of significant resources to that venture. Most small...