In this report, SWOT analysis will be used to review Z business performances and identify recommendations to improve the quality of customer services.
Strengths:
Strong Financial Performance and Growth
· Z has grown significantly and has expanded its market share for the past 5 years. This indicates strength in its market position. Z net income has improved over 6 times from 1.7 million to10.5 million between 2011 and 2017, while the total income for Z has increase 9 fold from 0.72 million to 9.73 million from 2011 to 2017.The prediction for future growth is even better.
· In addition to the high total income and net income, the increasing product profit margin also indicate Z high financial growth and return. Such as, the profit margin for first-generation supercar model ‘Zentesey Spree’ is 42.48%,while the new ‘Zhyber-OT’ and ‘X8’ model have about 65% net profit margin. That is a really big achievement.
High customer satisfaction
·Z has a high product satisfaction among its customers overall and build good royalty among its customer base. All of Z supercar is handmade, highly unique, which aims to deliver a personal and high-specification driving experience to every customer.According to the customers surveys,90% of the customer satisfy with the current Z products and 86% existing customer will buy Z’ car in the future. This high satisfaction gives solid foundation to Z strong financial performance and future growth.
Utilizing the most cutting-edge technology
·Z really focus on using the latest technology to produce high performance supercars. They are currently using automotive, 3-D printing and data connectivity technologies to provide exclusive driving experience. Those technologies are unique selling points of Z and allows Z to differentiate from competitors.
Weakness
Niche market
· Z only target a very small group of customers and the sales volume is small. In 2019, only 20 supercars would be sold. The car model is also very limited, currently they have only 3 car models, which does not give much diversity. According to the interview with Z’ CEO , they hardly do self-promotion largely depend on word on mouth and client loyalty for their business. Hence, the potential volatility would be very high at times of economic crises when the company may face issues of high percentage of sales loss.
· High operation cost
Z have a great increase in operation cost from 2011 to 2017: 2.5m to 15m, and it is forecast to be higher in 2019. Labour and material cost are quite high as well. This is mainly because Z develop every single part of supercar in house. The hand-made car has high operation cost and takes long time to manufacture and deliver. This limits car production and Z couldn’t take advantage of economy of scale to drive down operation cost.
Opportunity:
Emerging markets
In 2018, 33% of customers are from Asia and 32% from Middle East, so it opens great opportunities in these emerging markets .It is also predicted that 32% of high net worth individual will be from Asia in 2026. This is a huge opportunity for Z to further expand its business and target on Asia customers, such as providing limited collection and tailor-made supercars to attract them.
Sustainability
Electric cars will be the mainstream in the future. Many auto companies like Tesla have launched cars that are electrical-powered. This also satisfy the society’s desire of sustainability. Z can seize this opportunity by developing electric supercar model. Z will also gain government funds by doing so and this will be a great opportunity to attract the eco-friendly consumers who may switch to other companies if alternatives aren’t provided.
Wider range of cars and internal styling
According to customer’s survey, many complained about the limitation of model and the internal styling. It is good to provide wider range of cars and more tailored editions. In order to increase the target customers, Z can release a more generalized high-performance car model such as SUV with a lower sales price to expand their business.
Threat,
Economic uncertainty
Global economic recession and Brexit will have negative influence on Z’s business. Bank of England forecasted the economic growth of UK in 2019 will be the weakest in 10 years. Because z only sells very small number of car every year and focus on niche market, and hardly do any market campaign, so Z may be more sensitive in economic fluctuations. Rich people may hesitate to purchase supercar in the economic downturn.Moreover, more than 60% of revenue comes from foreign countries, so Z is exposed to foreign exchange risk.
Regulation and tax
Car industry is undergoing big changes. Electric cars are the new trend, so government introduced stricter regulations and more taxed on high performance cars and encourage electric cars.UK government is going to forbid the sales of traditional cats in 20years. China, the US have also enacted laws to reduce emissions. Most countries are charging high tax for petrol car producers and owners. This additional regulation and taxes pose a risk to z and make it less appealing to its customers.
Recommendation:
Clients are less satisfied with the internal styling.We shall further investigate and identify causes of the satisfaction, for example, focus group, invite customers and gather their feedbacks and hire industry experts in internal styling to enhance our internal design so we can improve customer’s satisfaction on this. In addition, customers want to have a wider range of cars and have events for VIP and car owners in order to have a more exclusive and unique experiences. Z can arrange regular VIP events to keep their interest in the company.
Successful relationship
having a good relationship with every client is essential for PwC. I will take the initiative to schedule meeting with the clients to understand their needs and concern and put them at the heart of everything I do. I will always listen to them very attentively and always be friendly and considerate to their needs. When I was working with them, I make sure I behave professionally at all time and be hardworking and well-prepared so I come across knowledgeable and proficient therefore clients can place trusts on me.
I will also always aim to go above and beyond the requirement of the clients and deliver the best quality work that not only satisfy the needs of the clients but also add values to their business. For example, I will look for ways to improve their data analytics capability or propose a better way to perform certain processes.
Strengths:
Strong Financial Performance and Growth
· Z has grown significantly and has expanded its market share for the past 5 years. This indicates strength in its market position. Z net income has improved over 6 times from 1.7 million to10.5 million between 2011 and 2017, while the total income for Z has increase 9 fold from 0.72 million to 9.73 million from 2011 to 2017.The prediction for future growth is even better.
· In addition to the high total income and net income, the increasing product profit margin also indicate Z high financial growth and return. Such as, the profit margin for first-generation supercar model ‘Zentesey Spree’ is 42.48%,while the new ‘Zhyber-OT’ and ‘X8’ model have about 65% net profit margin. That is a really big achievement.
High customer satisfaction
·Z has a high product satisfaction among its customers overall and build good royalty among its customer base. All of Z supercar is handmade, highly unique, which aims to deliver a personal and high-specification driving experience to every customer.According to the customers surveys,90% of the customer satisfy with the current Z products and 86% existing customer will buy Z’ car in the future. This high satisfaction gives solid foundation to Z strong financial performance and future growth.
Utilizing the most cutting-edge technology
·Z really focus on using the latest technology to produce high performance supercars. They are currently using automotive, 3-D printing and data connectivity technologies to provide exclusive driving experience. Those technologies are unique selling points of Z and allows Z to differentiate from competitors.
Weakness
Niche market
· Z only target a very small group of customers and the sales volume is small. In 2019, only 20 supercars would be sold. The car model is also very limited, currently they have only 3 car models, which does not give much diversity. According to the interview with Z’ CEO , they hardly do self-promotion largely depend on word on mouth and client loyalty for their business. Hence, the potential volatility would be very high at times of economic crises when the company may face issues of high percentage of sales loss.
· High operation cost
Z have a great increase in operation cost from 2011 to 2017: 2.5m to 15m, and it is forecast to be higher in 2019. Labour and material cost are quite high as well. This is mainly because Z develop every single part of supercar in house. The hand-made car has high operation cost and takes long time to manufacture and deliver. This limits car production and Z couldn’t take advantage of economy of scale to drive down operation cost.
Opportunity:
Emerging markets
In 2018, 33% of customers are from Asia and 32% from Middle East, so it opens great opportunities in these emerging markets .It is also predicted that 32% of high net worth individual will be from Asia in 2026. This is a huge opportunity for Z to further expand its business and target on Asia customers, such as providing limited collection and tailor-made supercars to attract them.
Sustainability
Electric cars will be the mainstream in the future. Many auto companies like Tesla have launched cars that are electrical-powered. This also satisfy the society’s desire of sustainability. Z can seize this opportunity by developing electric supercar model. Z will also gain government funds by doing so and this will be a great opportunity to attract the eco-friendly consumers who may switch to other companies if alternatives aren’t provided.
Wider range of cars and internal styling
According to customer’s survey, many complained about the limitation of model and the internal styling. It is good to provide wider range of cars and more tailored editions. In order to increase the target customers, Z can release a more generalized high-performance car model such as SUV with a lower sales price to expand their business.
Threat,
Economic uncertainty
Global economic recession and Brexit will have negative influence on Z’s business. Bank of England forecasted the economic growth of UK in 2019 will be the weakest in 10 years. Because z only sells very small number of car every year and focus on niche market, and hardly do any market campaign, so Z may be more sensitive in economic fluctuations. Rich people may hesitate to purchase supercar in the economic downturn.Moreover, more than 60% of revenue comes from foreign countries, so Z is exposed to foreign exchange risk.
Regulation and tax
Car industry is undergoing big changes. Electric cars are the new trend, so government introduced stricter regulations and more taxed on high performance cars and encourage electric cars.UK government is going to forbid the sales of traditional cats in 20years. China, the US have also enacted laws to reduce emissions. Most countries are charging high tax for petrol car producers and owners. This additional regulation and taxes pose a risk to z and make it less appealing to its customers.
Recommendation:
Clients are less satisfied with the internal styling.We shall further investigate and identify causes of the satisfaction, for example, focus group, invite customers and gather their feedbacks and hire industry experts in internal styling to enhance our internal design so we can improve customer’s satisfaction on this. In addition, customers want to have a wider range of cars and have events for VIP and car owners in order to have a more exclusive and unique experiences. Z can arrange regular VIP events to keep their interest in the company.
Successful relationship
having a good relationship with every client is essential for PwC. I will take the initiative to schedule meeting with the clients to understand their needs and concern and put them at the heart of everything I do. I will always listen to them very attentively and always be friendly and considerate to their needs. When I was working with them, I make sure I behave professionally at all time and be hardworking and well-prepared so I come across knowledgeable and proficient therefore clients can place trusts on me.
I will also always aim to go above and beyond the requirement of the clients and deliver the best quality work that not only satisfy the needs of the clients but also add values to their business. For example, I will look for ways to improve their data analytics capability or propose a better way to perform certain processes.
