Strategic Management
In the current era dominated by technology, any business needs to adopt the use of technology to stay ahead of the competition or at least have a chance of competing with their rivals. One such innovation is the use of the internet to make sales to various people around the world. One of the most famous online sellers is Amazon. This approach has its pros and cons, as discussed below.
Pros
When using Amazon to make sales, Stihl will be assured of the security of the transactions. The money handling is the responsibility of Amazon, and no goods will reach the consumer without receiving payment first. As a result, nobody can get hold of the goods through Amazon and fail to complete the payment. Another significant advantage is the fact the company will have a worldwide market because Amazon delivers the products to people all over the world. By having a broader market, Stihl will increase their sales. This increase in sales results in increased profits from the business allowing the business to experience further growth in the years to come.
Consumers looking for products on Amazon do not search for specific companies. Instead, they search for the goods that they are interested in. Therefore, customers who go to Amazon in search of chain saws or other power tools are likely to discover Stihl in the process. Consequently, Stihl will receive new customers, helping them make even more sales.
Cons
Given the easy accessibility of Amazon, many companies offering similar products are likely to showcase them on Amazon. Therefore, there will be high levels of competition, especially if the other companies offer lower prices than those of Stihl. Also, Stihl will have very little control over the marketing of its brand as Amazon focuses on products rather than the sellers.
Recommendation
After careful examination of the online market platform, I would recommend that Stihl makes use of the Amazon marketplace. Even though it may be difficult at first, things will eventually get better, and business will pick up. One of the significant challenges expected would be the process of setting up a strong foundation for the online market and establishing loyalty among its customers. The money spent in terms of fees paid to Amazon may be massive at first, given the low returns that are characteristic when starting something for the first time, However, after Stihl has gained the confidence and trust the profits are bound to increase significantly. Once this happens, the challenges will become negligible and almost non-existent.
The chances of success in the Amazon marketplace are very high. Stihl needs to learn online market trends as fast as possible and adapt accordingly. For instance, the company can research the types of chain saws that consumers prefer or the most efficient ones. Afterward, they can manufacture these types of chain saws and advertise them on Amazon, where they will make a tremendous amount of sales. The rise in transactions would increase the company’s profits, allowing it to expand its range of products available for consumers.
By increasing the range of products, the target population is also likely to grow. The company will manage to cater to the needs of many people in different parts of the country. On Amazon, people give reviews and rate the quality of the products they received. These ratings, if positive, will attract other potential buyers to Stihl’s products. Once the number of customers increases, the company will enjoy prolonged periods of success.
Possible Situational Changes
The business world is an ever-evolving field, full of competitors looking to gain an advantage over their rivals. This kind of competition is essential as the company that appeals most to the consumers will survive while the rest are likely to collapse. New businesses emerge from time to time, each trying to be better than the already existing ones. In this field, other companies may likely appear with similar products to those offered by Stihl. In such scenarios, the new company often provides well at lower prices to lure customers. Once this happens, Stihl is likely to lose its customer base.
In the case of such an occurrence, it would not be advisable for Stihl to leave the online marketing platform. Instead, the company should come up with suggestions and ways to stay ahead of the competition. These ways may include a reduction in prices of goods to retain its customers or even attract more customers. Alternatively, they can improve the quality of their products to ensure that customers get value for their money. Also, the company should give warranties for their product such that they take care of any damages to the products during the first couple of months. By doing so, the customers will maintain their faith in them, and no form of competition can sway the customers away from Stihl.
Quitting the online marketplace would not be a viable solution because the company would have lost access to most of the international customers. Starting a personal website may be costly. Also, the company’s website would not have a massive following, like the one that Amazon possesses. Therefore, the best solution is to venture into the online marketplace and do what it takes to stay ahead of the competition.