Head & Shoulders shampoo SWOT Analysis - Essay Example

Head & Shoulders Shampoo SWOT Analysis Affiliation: Head & Shoulders Shampoo SWOT Analysis Weaknesses: The weaknesses facing Hair & Shoulders brand include lower motivation to invest in technology. In today’s business environment, technology is the major driving force for productivity, efficiency and competitiveness of firms. In this case, by failing to invest considerably in technology, Head & Shoulders has failed to realize economies of scale, particularly in low levels of export and small sectors.

In this case, the brand is incapable of addressing the needs of its clients adequately based on the widespread innovation initiatives that other companies are embarking on. This is making the brand to miss a large client base, which plays a major role in boosting the revenues of the company. In the rural areas, especially in India, most people lack of sufficient education in about the product. They are unaware of what the product is meant for and the company has not taken sufficient measures to introduce the brand to them.

As such, the company is losing potential clients in the rural areas to competitors who have introduced the product in the rural areas. Furthermore, a large number of products are prevalent in the market, challenging clients on the best brands to choose (Rahman & Kazi, 2012). Due to this, the clients may end up missing the Head & Shoulder brand, which may address their needs effectively unlike the case of other brands. Opportunities: The major opportunities for Hair & Shoulders brand include the untapped rural market, growing income levels for the clients, huge domestic market in the entire country, massive export potential for the company, and considerable investment in clients towards consumer goods.

In this case, the brand needs to focus its attention on the rural and domestic market, particularly because the income levels of consumers are rising at a rapid base. As such, the brand will attain a considerable market share in the economy, allowing it to boost its competitive advantage significantly. In addition, most countries around the world are introducing favourable FDI policies. In this case, the company is capable of investing its operations globally, allowing it to review the equity of its brand.

Moreover, the brand focuses on individuals of all age groups, particularly middle-aged women. Here, the brand has managed to acquire a considerable market share, which has played a major role in raising its revenue and profitability, allowing the company to become highly competitive in the global market (Rahman & Kazi, 2012).Threats: In terms of threats, the elimination of import restrictions have resulted to introduction of other competing brands in the economy, leading to deteriorating sales and competitive advantage of the brand in different parts of the world.

This is particularly due to the emergence of rivals, such as Dove and L’oreal, which have taken a considerable share of the market. The demand in rural areas is slow, while new entrants of popular global brands, illegal foreign imports, and spurious goods of diverse shampoo brands have negatively affected the growth of Hair & Shoulders shampoo in the global market. Furthermore, developing countries, such as India are experiencing high levels of inflation. As such, the brand ends up being costly to the residents, posing considerable challenges when the clients decide to purchase the product.

(Rahman & Kazi, 2012). These issues have led to a considerable decline in the company’s sales, negatively affecting the profitability and competitive advantage of the company in the market. Reference Rahman, M., & Kazi, R. (2012). Analysis of Hair Care Products with Reference to Shampoo Market. Mumbai: Sinhgad Institute of Business Administration.