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Swisher Mower

In: Business and Management

Submitted By mkaissi
Words 1991
Pages 8
Situation Audit
Swisher Mower is a lawn and garden company that manufacturers lawn mowers in its plant in Warrensburg, Missouri. The company’s flagship product is the Ride King. In 1996, Swisher was approached by a national merchandise retailer offering to distribute Swisher’s standard mower under a private label. The retailer offered to distribute the product line, but included several stipulations that would change the Swisher’s distribution methods of its product. Sales within the industry are predominantly determined by changes within the economy. If the economy weakens, overall sales within the industry decrease. This cyclical effect can hinder or expand sales for a company, causing many companies to adjust their business strategies. Another cyclical effect arises from changing seasons, which determines when products will be sold. During the mid-1990s, households were expanding outside of metropolitan areas into vast suburbs across the country. Home owners have acquired larger amounts of property within the suburbs. As the population drifts outside of metropolitan areas, more land is devoted to residential property. New technologies have become available that have helped evolve the industry. More powerful and durable engines are being developed, allowing larger jobs to be completed. The lawn and garden equipment industry produced sales of $5.5 billion in 1995. Three quarters of the sales were from finished mowers, while 25% of sales came from engines. The industry is comprised of ten manufacturers, including major competitors John Deere, MTD, Murray of Ohio and American Yard Products. Each of the ten companies sells its brand under a nationally recognized label, as well as a private label. The private labels account for 65% to 75% of the market, providing a strong level of competition. Many companies have products being sold in national retailer chains as well...

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