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Scope, Strategic Analysis

Essay by   •  November 24, 2012  •  Research Paper  •  3,640 Words (15 Pages)  •  1,523 Views

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Business Definition

Scope is one of the iconic mouthwash products produced by Procter & Gamble (P&G) in 1967 that helps killing millions of bad-breath bacteria, leaving the mouth feeling clean and refreshed; it was the first brand that offered both effective protection against bad breath and a better taste than other mouthwashes.

Business Mission

"Provide branded products and services of superior quality and value that improve the lives of the world's customers, now and generation to come."

Business Objectives

Production objectives:

* To improve product quality, while reducing the time and resources required to manufacture, warehouse and ship products.

* To create a safe work environment and minimize the waste products produced through the course of the production process.

* To increase employee productivity and reduces employee turnover rate.

Financial objectives:

* To continue to increase the profitability levels (earnings before interest, taxes, depreciation, and amortization) as a percent of sales.

* To ensure adequate return on invested capital and maintain a reasonable annual dividend on equity capital.

Marketing objectives:

* To increase the market share in Canada by 4% by 2013.

* To create awareness to the consumers in order to increase their confidence level towards Scope mouthwash brand.

Environmental Opportunities

In mouthwash industry, company can get a seal of approval from Canadian Dental Association (CDA) if the product are able to prevent plaque or cavities. This seal recognizes the positive medical effect of the mouthwash producs. Thus, Scope should try to obtain a clinical database to convince the Health Protection Branch (HPB) and CDA to allow Scope to use these claims, as it could attract consumers that are interested in a mouthwash with medical benefits to purchase Scope. Besides, the advancement in technology could helps Scope to delivering and add value to their customer by improving production and operation. The right technology can help Scope to cut costs, become more efficient and grow through innovation.

Distinctive Competency

Scope has long experience in the oral hygiene industry since 1967. It has good reputation as notable brand that kill germs that cause bad breath and it has better taste than other mouthwashes. Scope is also well knows as bad breath remedy and in 1976, Scope became the market leader in Canada. Furthermore, Scope has higher market shares in Canadian Mouthwash compare to its competitor.

Success Requirements

The key success factors for Scope is innovative research where Scope needs to make sure that the products are keeping up with the demands of the mouthwash industry and are consistently recognized as a company that stays on top of product changes. In other words, Scope must understand the consumer's needs, wants and preferences. Being first to market and staying ahead of the competition is always ideal in trying to maintain the market share. In addition, distribution and inventory control are also critical success factors in the mouthwash industry. Scope must carefully select and control its distribution channel, this is because how and where the customers get their mouthwash product will reflect the company's brand and culture. Besides, Scope must also build a superior relationship with the members in the distribution system, including their suppliers, wholesalers, and retailers.

SWOT Analysis

Internal Factors Strengths Weaknesses External Factors Opportunities Threats

* Management / * Economic /

* Marketing / * Competition /

* Manufacturing / * Consumer /

* R&D / * Technology /

* Finance / * Legal/Regulatory /

* Offerings / * Industry/Market

Structures /

Strengths

In this case, we can found a few strengths of Scope. First, Scope was long experience in the oral hygiene market since 1967. It is the market leader in the Canadian mouthwash market. A complete operating division group with a capable brand manager, Gwen Hearst who is graduated from a well-known Ontario business school and has been promoted to current position in just two years, we can conclude that the management power can consider as strength of Scope. Besides, the marketing aspect can also be the strength of the Scope. For the mouthwash, Scope not only provided a cheaper price than other major competitors, and also used a few promotion ways like give away sample, mailed couponing and in-store promotion to support and market its own product. For the manufacturing part, we think that it serves as strength for Scope. It is because from the Exhibit 7, we can found the sales volume is increasing from 1988 to 1990 where it proves that the manufacturing is able to meet the demand and the production requirement. On the other hand, finance can be proved as one of the strengths from the report in Exhibit 7. The statement has showed that the sales volume of Scope has increased from 1988 to 1990. Their financial stability allows them to spend more in advertising and improve their R&D to add value to their products and innovate new products.

Weaknesses

There are several weaknesses we can found from this case. First is the R&D of Scope. From the case we can know that Scope only offer an advantage which was bad-breath protection with a great-taste for its customers. Even though after the emerged of competitors, the R&D of Scope only can came out with a new prebrushing rinse product that has the same features with Plax to compete with others. From this fact it can shows that the effort that Scope's R&D department spend was limited compare to its competitor which can come out with new product which is more functioning and innovative. Moreover, although Scope was the market leader in Canada, the offerings guarantee it gave to consumer was lesser than the competitors.

Opportunities

Based

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