istine Case Study
Question for discussion.
1. What are the major SWOT consideration in Mistine’s attempt to continue its growth and dominance in the Thai market?
Answer.
Strength
The strength of Mistine is it leads the Thai direct selling cosmetic market since 2007. Mistine not only serve a wide variety of quality products but also at affordable prices. Every product will be inspected and tested before being delivered to the warehouse. These ensure the quality and standard of the product. Every Mistine product comes with a satisfaction guarantee that if any reason a customer is not satisfied with their purchase, Mistine will replace the product or offer a full refund without condition. Not only that, Mistine also uses TV advertisement campaign to create awareness among the people in Thailand about Mistine’s product.
Weakness
The weakness of this company is the high turnover rate among the salespeople which is at 200 percent. Most of them sell Mistine product as a second job or part time job. Most of Mistine product are for women so it is hard for the company to expand their product to target the men’s market. Not only that, a lot of people perceived Mistine’s product is a low quality product and for lower income people because of the price range. The success of Mistine depends mostly on the salespeople, it could be a possible weakness in the future if competition among the direct-selling companies increases or the power of labor unions get high.
Opportunity
Mistine has an opportunity to increaseits sales because it is reported that direct selling market grow at the rate of 15 percent every year. The increase is due to mainly tremendous growth in exports as financially strapped consumer turn to direct selling model to purchase cosmetics and other products. Not only that, Mistine product is also sold in other countries creating an opportunity to expand their market not only in Thailand but other countries as well.
Threats
There are many direct and indirect competitors...
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