SWOT and PESTEL analysis for CompleteSleep pillow which is a fictitious product
Like many new, product-based market entries, the strengths and opportunities are based
primarily on intellectual property accumulation for future expansion and propulsion
into related ventures. Weaknesses and threats, while not insignificant, can be addressed
effectively via clear strategic initiatives and diligence.
|Strengths Possess innovative sleep technology combining material science and digital technologies. Global supply chain, providing ability to source materials and manufacturing at the lowest possible rate which translates into optimal pricing for the customers. State-of-the-art R&D facilities. National partner network||Weaknesses Ability to deliver suite of smart features for the initial launch (measurement and control of pillow) Many startups offering plethora of smart features already (except for adjustable firmness) Potentially low introduction of new productsEmployee training of technically sophisticated productVulnerability to lawsuits|
|Opportunities First mover advantage. Adjustable firmness and technology-integrated smart pillow is a nascent market with potential for future growth Capitalize on consumer spending which is increasing and currently at 13253.38 USD Billion||Threats Threat of new entrants is initially low, given the difficulty of combining the new material technology with digital technology; yet, once released, copyright infringement will likely ensue and require diligence Economic downturn, which would more strongly affect higher end product|
Current political environment is not conducive for US companies who have an established global supply chain, especially when it involves China because recent tariffs on Chinese imports can make difficult outsourcing manufacturing or importing raw materials from China. The direct effects of this trade war could result in higher prices of CompleteSleepPillow to US consumers. To keep costs in check, an alternate outsourcing strategy needs to be developed.
US federal interest rates have been increasing steadily4 in the past few years and, simultaneously, consumer spending is also increasing, currently at 13253.38 USD Billion.5 These are good signs for any company looking at launching a consumer product like CompleteSleepwithin the US.
Research estimates that up to two-thirds of adults will experience significant neck pain in their lifetimes,6 and one treatment is the right pillow. Secondly, the current working population performs their jobs mostly on computers which can stiffen the neck, strengthening the need for right kind of pillows. CompleteSleepaddresses these growing needs.
With the availability technologically advanced materials and increased digital connectivity through smartphone, it makes is less complex to design, manufacture and launch a product like CompleteSleep Pillowto the consumers. However, when selling this product in developing countries could pose technological challenges like lack of electricity, mobile connectivity, etc.
Given that different kind of materials within each layer are used in making of CompleteSleepPillow, it is important for the company to educate its consumers about the ways to get their used pillows recycled, thus reducing the environmental impact.
It is critical that CompleteSleep Pillow claims are articulated and promoted properly, as they do not provide a singular solution for all neck problems but will serve as one of the treatments for neck pain. Plus, their close contact with consumers’ bodies—and specifically, their heads—require close attention and risk management to avoid legal issues.
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