Porters five forces of analyzing the competitive environment of a business will be used to demonstrate whether General Parkelite company is attractive or not. The company has a wide customer base with a strong bargaining power. At the same time, entry of new players in the market does not impact a considerable threat to General Parkelite Company. Its brand has enjoyed long time dominance and has been able to penetrate and gain acceptance among the larger populace. Even after the discovery of Parkelite formula, the company has continued to broaden its product portfolio so as to remain competitive. This is a good and innovative way of maintaining a good touch with the customers such that their satisfaction is met through getting customized products. Furthermore, the company has maintained an edge through its marketing and advertising strategies. GPC has continued to improve on innovativeness of its products through research and development and therefore, remain a notch higher than its competitors.
A SWOT analysis is a management tool that helps to evaluate the strengths, weaknesses, opportunities and threats that affect a given business. GPC enjoys a good brand that has dominated this particular market and industrial category. However, the company has some potential weaknesses especially due to the dynamics within the market and the underlying issue of its patent. After the discovery was made, a moral stand would require the company to bear all the cost pertaining to use of someone else patent. This is a great threat to the future existence and survival of GPC. Despite these weaknesses, there exists possible opportunities such as further diversification of the product range and entrance to new markets that are not yet exploited.
After the truth about the company’s patent was unveiled, it becomes ridiculous that the company has all along being standing for a lie. The puzzle lies on the fact that only a few people in management know this truth. Shareholders are also not in the light of it. It poses a great danger and a weakness towards the future success of GPC. However, presence of an elaborate R & D allows the firm to improve on innovativeness of its products hence they are able to give their customers products that are tailor made. This presents one of the strengths that GPC enjoys besides helping to create loyalty among the customers.
It is unethical and at the same time illegal to own, steal or even possess someone else patent as one’s own. The best way to protect inventions is to patent them so that the owners are able to enjoy and appreciate their contributions. In the case of GPC, Parkelite formula was not an original idea of the founder of the company. Instead, it belonged to another person who ought to have enjoyed and appreciated all the effort made in the whole invention process. However, although it was unethical to do so, I would recommend that the status quo remain since the idea must have by now lost its commercial value and the business stands to lose more than gain if the discovered lie is made public.