Executive Training Inc Swot Analysis

Situational Analysis

SWOT Analysis

Executive Training Inc. a successful business firm which provides marketing and sales training for agricultural companies for many years. The company have experienced positive growth since the start up, and with the rapid popularity of Internet, Tom Jackson, the president and owner of Executive Training Inc., is convinced that the online training method might be more workable than the traditional face-to-face method.

Mr. Jackson have the opportunity to be the first agribusiness training company that offer sales and marketing training programs through online delivery. However, since agricultural online educational program is a relatively new concept, cost information was difficult to estimate. Additionally, there is also high initial cost of investment involved if Mr. Jackson were to launch his new product. Moreover, Mr. Jackson is not fully comfortable with the online training method because he is unfamiliar with the online education industry. Compared to the current face-to-face training method, Mr. Jackson have had a lot of repeat customers without having to advertize his business aggressively. In other words, although online training program provide a good base for potential new customers without the limitations of a traditional classroom setting, there is a lot of unpredictability involved in launching the new product line. Unpredictability such as the number of participants, teachers, hours, and number of maintenance services that would eventually add up to the total cost that ETI would have to sustain (MacKenzie, 2010).

Key Issues

1. Tom Jackson lacks the familiarity of online training program for agriculture business

Mr. Jackson cannot gage the decision of the new product launch. He is questioning "whether or not the market was really ready for this approach and if and how he should proceed" (MacKenzie, 2010, p. 319), or if this is the most plausible move for ETI.

2. Executive Training Inc. have a specific target market area

The size of it may not be able to accommodate ETI's needs of creating positive growth.

3. The high level of risk involved with the implementation of a first mover strategy

The idea have not been tested; therefore, creating ambiguity on whether the expansion will be a success.

4. Possible lack of demand for the new product line

Clients may not have a need or want an online delivery training program. Some clients may value face-to-face interaction more because they are aware of the immediate and long term benefits; the benefits of online programs are less prevalent.

Market Description

Target Market

The target market for this particular firm are clients from both Canada and the United States, including both large and small companies in the agribusiness industry. Program participants range from middle to senior managements and sales representatives.

Alternatives

Continue with the Current Operation

Pros Cons

* The traditional classroom setting allowing exchange of ideas without any barriers of communication. Participants can also benefit from these exchange of ideas.

* The company's revenue is guaranteed for the past 17 years, from about $100,000 to $1,200,000 in 2003.

* The two three-day programs generate about 75 % of the company's revenue.

* The dismissal of high initial investment cost. * Some clients may be looking for new types of training courses that are not limited to marketing and sales.

* The existing method of interaction may not be in par with the latest change in trend.