Touraj's Blog

We all want to become an entrepreneur, and invent a new business that would make us millions. Well, Ingvar Kamprad with 84 years of age did that back in 1943. Ingvar is the owner of IKEA entrepreneurial business with 267 stores in 25 countries around the world. What made Ingvar and his business entrepreneurial can easily be explained by the definition of Entrepreneurship. An entrepreneur is an owner of a company  with invention, innovation, creativity, and ability to take risk.

Ingvar was an entrepreneurial business man because he designed his way into the market. He designed ways to approach the buyer, ways to make antique yet cheap items, as well as taking risks. His intention to be the market leader of the world gave him the motive to take risks so unimaginably big that could cause him, and IKEA to fail, yet he went on and took those risks.

How IKEA turned out to be a strong entrepreneurial company is simple.  There are three main reasons. First,  IKEA’s success was unexpected so there was no prediction that IKEA business would be successful. Secondly, IKEA was Incongruous, and it was designed to attract all society classes in different countries. Third and last reason, IKEA’s innovation changed people’s perception from buying designer lables to simplicity and economic functionality.

IKEA’s innovation to take risks in changing the perception of people worked, and caused an enormous amount of wealth to be created in a short run.

Tata Motor of India has just introduced an advanced piece of machinery that could totally change the way middle to lower class families in India would drive. This newly invented car is called Nano, and since its appearance it has allured so many eyes, and of course mine.  This car is to be seen driven around India a lot, but is it worthy enough to be driven around World? The SWOT analysis can give us a tiny clue in regard to this problem.

Strength:

Nano’s cheap price, stylish looks, low gas consumption, and eco-friendliness has got everyone talking about. With only a budget of 2500, you will be able to drive a really cool car, with 50 miles per gallon; which leaves  you with more money in hand, and a better and greener future for planet earth.

Weakeness:

It seems like most other cars have stylish looks, and okay gas consumption, yet non of them are as cheap as NANO; why is that?  Well, Nano has no air-conditioning, no automatic windows, a bodywork that has been put together with adhessive ( So different than welding), and eventually a 624 cc two-cylinder engine that only maxes 70km’hr.

Opportunities:

Nano’s cost of maintenance is really  low, and if you live in a city where finding a parking spot is a hard work, then go on and buy this nano, as it will make it quite easy to find a parking spot.

Threats:

Nano’s top speed of 70 km/hr will make traffic congestion in big cities, and competitors such as GM, Honda, and Hyundai may threat Nano’s  existence with their perfect qualities.

Toyota Motor Corporation, is one of the leading Car Companies around the world in today’s Economy. It is ranked as the 8th richest company, with a valued brand of  $31.2 in 2009. How did this company make it up to 8th in the world grabs alot of  attention, so I decided to used S-W-O-T  analysis technique we acquired in class to classify the problems and strengths of this multibillion dollar company.

Based on SWOT analysis, there are 4 factors each company encounters; strength, weakness, opportunity, threat.

Strength

Based on Datamonitor’s analysis on Toyota,  Toyota motor has reached its crazy auto industry strength by using its strong engineering capabilities. The newly innovated cars, air-conditioning air compressors, fork lifts, and automobile engines all put Toyota in top. Toyota’s latest cars like RAV4, and Vitz bring up the innovating power of Toyota Motors.

Weakness

Toyota Motor’s over independence on Japanese market is its worst weakness because Toyota has to mostly rely on Japaneses economy.

Opportunity

The current world is running on fossil fuel, which has limited resources and causes a lot of pollution, therefore search for cleaner and more efficient ways to burn fuel (Hybrid Motors) give Toyota the chance to expand its profit.

Threat

In the world wide marker, the presence of too many car brands, and corporations create a difficult, and competitive market for Toyota Motor Corp has to survive in.

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