Table of Contents
1.0 Introduction. 2
2.0 Strengths, Weaknesses, Opportunities and Threats (SWOT) 2
2.1 Strengths. 2
2.2 Weaknesses. 2
2.3 Opportunities. 3
2.4 Threats. 3
3.0 The Porter’s Five Forces Model 3
3.1 Competition from Potential Companies. 4
3.2 Competition from Established Companies. 4
3.3 Bargaining Power of Buyers. 4
3.4 Bargaining Power of Suppliers. 5
4.0 Competitors. 5
5.0 Social Responsibility. 6
6.0 Key Factors to Success. 6
7.0 Conclusion. 6
List of References: 8
Play Projects Company
Play Projects is event management company that manage lifestyle and corporate events, entertainment management and marketing support. Main customers young people with social life. Use social media, as it know that this is one of the most effective ways. It uses both the virtual and the real world to ensure creates events that are important to the market. It knows view of its threats and weaknesses. It know opportunities and strengths that it faces, and it working towards using them to the most to ensure that it gains a competitive advantage in the market. The paper show strengths, weaknesses, opportunities and threats that the company faces, since this is the main setting up and strategic tool of the company. It will highlight the competitors that the company faces, the value of social responsibilities, and key factors to the success of the business.
2.0 Strengths, Weaknesses, Opportunities and Threats (SWOT)
SWOT analysis is seeing the business environment to know best alternative for the company’s direction (Ferrell & Hartline 2010, pp.128). The strengths of company refer to the resources that a company can use to its advantage. An organization should use of opportunities that are available to make them goals (Stephenson & Thurman 2007, pp. 37). One of the main strengths of the company is that it has created many things different places. Event management is only need a person to be able to handle many activities since some of the events are seasonal. The fact that the company take care both business and social affairs means that new opportunities are always arising. This has enabled it to create more networks in the industry. The new opportunities created mean more business for the company. Another strength that the company has is flexibility. The company is flexible enough handle any opportunities that arise. Another major strength that the company has is that management values all the employees. There is created a feeling of ownership. They feel comfortable handle any roles that may be present. The company’s decision to utilize the social media fully is meaning that it has expanded its connections. Social media such as Facebook is good since they make one to create many connections.
Weaknesses are limitations is prevent the company from reaching its objectives. Weaknesses reduce the company’s competitiveness in the market (Stephenson & Thurman 2007, pp. 37). One of the major weaknesses of company is the lack of full time employees. This has not good productivity and performance. Employees not work good because of the many tasks they perform. They have many work and the results is poor. Another weakness is that the company does not have a fixed working place. Working virtually is person has to have access to the internet. The fact that the company does not have a fixed working place might explain why there are no full time employees. Another weakness is that it does not have main of long-term income. Many of the projects, which the company do are seasonal. This means that once a season ends, the company is left with no source of income if there are no forthcoming opportunities. Some of the people employed in the company might find this risky since they are not guaranteed any income. The company is see ways of earning an income, which does not depend on seasons. It needs to identify investment opportunities, which will guarantee returns at the end. This will make worker to stay in the job for longer since it will guarantee their financial security.
Opportunities is situations, which the company can capitalize and use to their advantage. Opportunities assist the organization make more profit and enhance their performance (Stephenson & Thurman 2007, pp. 37). Some of the opportunities, which the company identified, are like increase in number of social media sites. The company use sites like this to ensure that it connects with more people. The company uses the many available social sites to market its products. The more people learn of company, the higher the chances that the company will get more followers. This will in turn give the company the chance to sell its services to more clients. Another opportunity is more in the number of companies, which are wanting their services. This is an opportunity for the business to expand its clientele. More businesses are choosing to hire an events management company rather than relying on individual suppliers who might not meet all their expectations. They wanting hire the companies since they will offer them all the services they need, and they have specialized to undertake most of the tasks.
Threats is things that could arise to bring trouble to the business (Stephenson & Thurman 2007, pp. 37). One of the threats is of the event management industry not being always same. This is mainly caused by the instability in the entertainment industry. The entertainment industry in the country is affected by many factors such as people’s financial situation. When the economy is not good, people will choose to pay for their necessities but not use the money for unnecessary expenses such as entertainment. This will in turn mean that businesses dealing with organizing party and club events will suffer since they will not have a lot of business. The crisis within the Euro zone is also a major threat to the company. The Euro zone crisis will affect the number of businesses opening up in Singapore. Some of the company are already experiencing hard times. If the crisis is go on, it will decrease the number of company’s customers, and this will be detrimental to the survival and prosperity of the company. Another thing not good facing the company is the increase in the number of lifestyle/nightspots in Singapore. This is a significant threat to the company, as it is increasing the competition. The company is therefore have to share the number of events available with the other competitors.
3.0 The Porter’s Five Forces Model
The Porter’s Five Forces make company to know the power the competition. The five forces include the “risk of entry by potential competitors, the intensity of rivalry among established companies within an industry, the bargaining power of buyers, the bargaining power of suppliers, and the closeness of substitutes to an industry’s products (Hill and Jones 2009, pp. 42).” The presence of this forces makes it difficult to increase prices of goods and services. Changes in these forces can create either opportunities or threats to a company. Companies can decide the thing of power of some of these forces. For instance, established companies can make it more difficult for a new company to enter into the market, therefore make lower the strength of the competition (Hill and Jones 2009, pp. 43).
3.1 Competition from Potential Companies
Plays Projects has a competitive edge over the other companies in that it has already seen the market for a longer period before venturing, and it has incorporated the use of technology. However, the company see many competition from companies that are fighting to enter into the lucrative business. Singapore is more and more the center of choice for many international corporate and entertainment functions, as it attracts both businesses and international tourists. There is a more demand for event management organizations. Their services are like organizing events such as meetings, incentives, conferences and exhibitions, performing art events, and leisure and lifestyle events. The requirements of setting up and running such a business is many like before the company becomes fully functional. Companies have to obtain various licenses and get authorization from different departments before they can begin to operate. This does not seem to be not taking the efforts well of potential entrants into the industry (Guide Me Singapore). They are also expected to pay fees so that they can obtain the licenses. This is not a major hindrance since companies usually make more money from organizing the events, than they do getting licenses. The benefits is more costs, and many people with an interest in organizing and managing events are encouraged because of this.
3.2 Competition from Established Companies
There is many of competition among the established companies because there are many companies offering such services. Singapore is not having many of large population, and the events management companies have to share the few clients amongst themselves. However, although there are many event management companies in the country, only few of them deal with organizing club entertainment. This is of good thing for the company since it creates an opportunity for the company. The company has already started doing this by creating special theme nights such as the “Butter Cookies” which is not of the women and others such as “Detention”, where customers get the chance to win gifts. It also offers reduced prices for the fans on its Facebook page (Play Projects, 2011). The cost of being of belong in the market depends on the type of event that the company specialized in organizing. Some events require a lot of investment such as example of the equipment used. For instance, companies, which deal with organizing occasions such as weddings often, have to invest a lot of equipment. This is not the case with companies, such as Play Projects, which deal with organizing entertainment functions. Although they don’t buy in equipment, they incur relatively low costs when leaving the market compared to other event management companies.
3.3 Bargaining Power of Buyers
The company is having of free services for women and it caters for men by offering reduced prices on drinks. The customers seem to have the upper hand since they are like having advantage the most in this. The company seems to be more concerned about establishing a loyal customer base before establishing itself. This is mainly useful in a place where there are many night entertainment spots, and the population is not exceedingly high. Price sensitivity and the number of competitors that are in a market are crucial factors to consider when a company aims at retaining the bargaining power of buyers. By offering free things, it is creating competition within the industry. It will therefore become more power than the competitors will since the customers will look for a place where they can get cheaper services. Such services create difference needed between competitors in order for a company to gain and maintain a competitive advantage.
3.4 Bargaining Power of Suppliers
It is clear that the company’s main specialty and strength lies making nightlife events. The company relies on suppliers such as music deejays and artists to keep going. The deejays and celebrities make sure that customers is entertained throughout. Judging by the number of revelers who attend these events, the company seems to know what the customers want, and it supplies the best entertainment in the market. The company is endorsed by popular groups and individual artists such as the “Butter Factory” and “Cing Swan”. One of the good things of this type of industry is the flexibility it offers. Companies do not have to rely on one supplier for entertainment. The company has the things of deciding who will make happy the revelers. They therefore choose the most popular artists in the country or region, and this keeps the customers entertained. Play Project is a unique company as it uses Facebook for its own communication and for marketing purposes.
The Play Projects Company is see competitors in the market. The market is not pay, and competitors can enter and leave as they please. Its main competitors are Original Media Pte Ltd, Events Architects Pte Ltd, and the Events Artery Pte Ltd and more other company. In this industry, a company has to make sure they give best service, at a cheaper price or just like with other competitors in the industry. Although they seem to have seemingly created a competitive edge by using the virtual and the real world, this method is last not for long since other companies are also establishing themselves in a similar manner. The competition within the industry is so fierce, that competitors not want do whatever it takes to ensure that they remain the event organization of choice. Different institutions of higher learning are offering event management courses, which are geared towards equipping people with the necessary knowledge to ensure that they are in a better position to organize events.
Competitors should be seen as an good thing not like threat to the company. Competitors enable the company to create new and innovative products, and to improve its service delivery. This gives the company a competitive advantage and improves the market development. Having the market has is make the company to differentiate its products. New companies can learn from the established companies, in that they can not have doing the same mistakes (SEO Consult, 2009). Competitors help to legitimize and make use of technology. This is evident in the case of Play Projects. Play Projects is not the first events company to organize events through the social media. The company has however, helped to establish this as one of the major ways of event organizing. By bring together the virtual and the real world, the company has enabled other established and upcoming companies to realize that there is no limit to the channels that have for use in event management (Porter 1998, pp. 210).
5.0 Social Responsibility
The main thing of social responsibility is make sure that the internal and external stakeholders have higher standards of living, while at the same time maintaining the profitability of the business (Hopkins 2007, pp. 9). Businesses have do thing in a way that they cater for needs of all the stakeholders involved. This includes the employees, suppliers, customers, the community, and the environment. Some companies use in social responsibility issues as a way of enhancing their reputation. Businesses realize that they cannot remain profitable for long if they continue operating in areas where there is poor development. They therefore involve in development projects, especially in their areas of operation, to ensure that they benefit and remain profitable.
The community forms many ideas of companies that engage in social responsibilities. Companies build their credibility, transparency, trust and reliability when they engage in socially responsible activities. They develop a relationship with the community, and this benefits them in the end. Many people want to be known with responsible organizations. Organizations make good employees come when they engage in socially responsible activities. This also helps them to retain their current employees. Although social responsibility in organizations benefits the companies and the communities in different ways, it has often been seen not well as a public relations ploy by the organizations with goal of make more profits (Hopkins 2007, pp. 128)
6.0 Key Factors to Success
One of the most big factors to success in any business is communication. When people communicate with each other, they are able to make clear important thing, and this leads to better performance. Effective communication enables people to solve their problems and make not worry, thus enhancing productivity. It also enables people to build relationships with each other, and this enables them to work together more good than before (Rud 2009, pp. 60). Plays Projects have utilized communication effectively, and this has been enabled by the use of social media sites. This has in turn make them have to know what their customers want, and they are able to measure their reaction to past events.
Another important factor to success is innovation. Innovation bring more only add value to the customer, but it also ensures that there is a balance between the product quality and cost (Chittithaworn et al., 2011, pp. 184). Plays Projects have use a main approach to their innovativeness. They have included technological ideas to create relevant social initiatives, and have managed to attract many people to their business because of this. Innovation does involve to development of difficult technology only, but it also ensures that the technology that has been developed can be used by people freely. Another key factor is the use of social networks. This has enabled the company make less of costs and risks associated with the business. It has also opened up avenues for the company to source ideas from diverse sources, such as the input offered by the company’s followers on Facebook. Another factor that has make sure that achieve of success in the company is the ability of the company to offer differentiated products that cater for the needs of the clients (Cooper 1999, pp. 5).
Play Projects is a relatively new company that has been able to attract many customers and clients since it began its operations. This is big thing considering that the event management industry in Singapore has many established competitors. The company is aware of the impending competition it faces from new entrants in the market. Although the company has several strengths, it has a clear idea of its weaknesses, and it has a realistic view concerning the threats facing the industry. It is quick to take make sure on its opportunities and this has made it more profitable. By using SWOT and the Porter’s Five Forces Model, the company continues to identify the strengths and the opportunities created by its competitors. The two strategic tools will enable it to survive and thrive in the competitive market.
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