Foleo Fones SWOT Analysis

The research aims to complete a detailed SWOT analysis of Foleo Fones Limited. It will be business based on the last ventures in the smartphone production sphere and of the firm functions diversification.

a. Strengths

Starting fom the 1900s and till the 2000s, the Foleo Fones Limited has managed to establish itself as one of the leading cell phone producers on the Australian marketplace. In order to maximize itd opportunities, the company has sold mobile phones directly to clients, and also has opted to establish business connections with leading mobile service opertartors like as Telstra, Vodafone, Optus, and Virgin. It makes the company’s profitability to be higher than any other telecommunications company in the Australian market. Additionally, the company has diversified its production and sales such as producing new accessories for their phones as well as manufacturing of newer and different smartphones to improve on their sales margins. In 2007, the company opted to improve on the design features for their versions of the smartphones to remain competitive. For instance, the new phones were lighter and could withstand dropping and bumps. Also, the company has created a marketing brand to its Australian market making the company remain relevant despite unfair competition from companies such as Apple and Samsung. Intrinsically, the company has remained fundamental since it has invested in research and development not only to improve on their smartphone features but also, accessories for their specific phones (Fell, 2017).

b. Weaknesses

The company faces intense competition due to international companies such as Apple and Samsung. For instance, in 2007 came with the introduction of new range smartphones from Apple and Samsung which changed the business market for the local business. It was, therefore, forced to alter its approach through investment in research and development in boosting the design and features of the smartphones (Fell, 2017).

Additionally, the company plans on short-term results instead of long-term plans. Based on the entry of main competitors Apple and Samsung, the company was forced to improve on its phone features to counter the new imbalance caused by new entrants (Fell, 2017).

c. Opportunities

The company’s opportunity is to partner with strategic companies who will aid the firm in boosting its operational and profitability costs. In its move to go public, the company opted to partner with Google as well as iPhone App store which promises to reach out to latest technologies best for their customers. It will create a necessary platform for the company to compete with other international brands such as Samsung and Apple. Also, the company has potential to produce better performing and well-designed smartphones which will boost the company’s share in the market. Hence, research and development are the core of the business as well as client feedback in the long term instead of short-term (Fell, 2017).

d. Threats

Despite the potential partnership with Google, terms and conditions that the internet firm provides are seen to be unrealistic and unwarranted for a local business. It makes the possibility of the company to compete fairly with other companies such as Samsung and Apple involved in the long run, costing huge amounts of manufacturing and research and development (Fell, 2017).

Reference

Julie, Fell. Management Accounting: An Overview, Chapter 1-7. Retrieved 23rd September 2017.