Emmaljunga Manufactures

Competitive Assessment

Emmaljunga manufactures prams; it offers accessories, such as platforms, quadrolifts, baby lifts, footmuffs, strollers and aprons. It provides its products through authorized retailers in both internationally and in Sweden. The company was founded in 1925 and is based in Vittsjo, Sweden, and is seen in most households in Sweden, They produce the best quality of prams and strollers form Sweden, and market their products as the finest handcrafted strollers with the finest quality. They had a market share in the United States until 2001 were they pulled out of the country due to regulation restrictions. However, there are several baby carriage producers and distributors in the United States, and other producers outside the United States which have been successful in the United States.

BumbleRide Inc.: designs and manufactures strollers in the United States. It also offers various accessories, such as snack packs, caryycots, jam packs, car seat covers, footmuffs and liners, bassinets, toddler seats, and travel bags. The company provides its products through dealers and representatives, as well as online. BumbleRide Inc. was founded in 2004 and is based in San Diego, California with operations in Canada, Europe, and Asia. The price range for their strollers ranges from $269 to $659.

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Strength

1. Their strollers come with lots of accessory options, can be used as a bassinet as well as a stroller.

Weakness

1. Focus resources on creating only three models, this limits the options of their customers.
2. Their strollers are heavy and hard to steer around.
3. It also has limited storage space.

The Baby Jogger Company: The Company was founded in 1984 and operates as a subsidiary of Dynamic Brands, Inc. It designs, manufactures, and distributes jog strollers. The company’s products include bike trailers, bike joggers, and strollers; and accessories, such as bug and rain canopies, car seat adaptors, trays, liquid holsters, snuzzlers, tire and air pumps, shoulder pads, foot muffs, belly bars, bassinets or prams, cooler bags, carry bags, baby jogger hats, wheeler bags, umbrella holders, and harness pads. It sells its products through distributors, dealers, and retailers in the United States, and 22 other countries as well as sells their product online. The price ranges from $129 to $659.

Strengths

1. Brakes on the stroller work well. So it is known to be safe.
2. Products are light, spacious , and easy to wash

Weakness

1. They would have to adapt to regulations in countries where their products are being sold thus resulting in more start up cost.

Inglesina: an Italian manufacturer who creates and markets prams, strollers, and infant seats. The company offers twin and trio strollers. Inglesina was founded in 1963 and is based in West Orange, New Jersey. The company experienced constant and rapid growth, linked to the visibility the brand gained on the Italian market. For a decade, L’Inglesina Baby’s production remained centered on English-style prams but as early as the 1970s it introduced a revolutionary stroller: the “Apollo” (whose name pays homage to the new era of space travel). In the 1980s, and the whole next decade, the company developed a presence in other international markets as well, expanding its product line with articles such as baby seats, car seats and baby slings; with a price range of $179.99 – $339.99.

Strength

1. Large Retractable, adjustable canopy with viewing window

Weaknesses

1. Poor storage basket on strollers.
2. Their products are heavy.

Maclaren: This is a British manufacturer with showrooms in New York City and Connecticut. They sell their products online, through authorized Dealers, and specialized baby boutiques across the country. Their major product the buggy is said to be durable, safe, and lightweight. With a combination of modern materials like tubular aluminum, a durable structure that comfortably carries even a fairly large child, and 3D folding mechanism, the buggy weighed just 3kg/6lbs and fit into the same amount of space as an umbrella. Product warranties are only honored if the product is bought through an Authorized Maclaren Dealer, which is the only way to authenticate their products. On November 9, 2009, about a million Maclaren strollers sold by Target and Babies “R” Us were recalled Monday, after 12 reports of children having their fingertips amputated by a hinge mechanism. The recall included all nine models of single and double umbrella Maclaren strollers, according to the Consumer Product Safety Commission, which announced the recall after an investigation. Price ranges from $24.99 to $360.

Strengths

1. Strollers easy to clean and not so heavy
2. Trendy color selection, easy to maneuver and the smaller wheels make it a good indoor stroller.

Weaknesses

1. Product recall, this would make future mother lose faith in their product.
2. Seat not adjustable making it uncomfortable for a sleeping child, there by discouraging further patronage from customers.

Peg Perego: an Italian based manufacturer of baby strollers, founded in the 1940’s and based in Fort Wayne, Indiana. They sell their strollers through online retail stores and in the United States through authorized dealers like, Cub Cadet Dealers, Farm Supply Stores, John Deere Dealers, Sears, Toys R Us, TSC (Tractor Supply Company), and Wal-Mart. Their product standards differ in different countries, so parts are unique from country to country. One of the their major products in the United States, the Pliko P3 Classico has a travel System-compatibility, unique “Freedom of Movement” harness, a rear footboard for an older child, and all-wheel suspension. All products are JPMA (Juvenile Products Manufacturers Association) certified. Prince ranges from $139.99 to $1,059.99.

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Strengths

1. All products are Juvenile Products Manufacturers Association certified which gives customers more confident about their products.
2. Light weight strollers and accepts infant car seats.

Weaknesses

1. Problem with the storage unit on the stroller, most times had to find.
2. Flimsy cup holders, which customers consider when buying a stroller. They always want easy access to their children bottle incase he or she starts crying.

SWOT ANALYSIS FOR EMMALJUNGA

Strengths

1. They have 133 different kinds of pram with various colors to choose from, this helps them reach various target groups in the market. This increases profitability of the business; further more they are located in 17 countries with strong brand image in these countries. This would help build customer loyalty and can be passed down generational line, which will lead to repeat purchases; giving them a competitive advantage and allowing them penetrate into a new market easily.
2. The fabrics used for their products are environmental friendly .This helps reach more people especially individuals who are conscious about their environment. Individuals like these would not mind paying high prices for goods as long as it is environmental friendly. Furthermore, in most countries tax credits are given to companies who produce products that are beneficial to the environment; there by helping companies like Emmaljunga to save more money.
3. Their strollers can be used by both babies and toddlers; this shows the quality of the stroller being produced by Emmaljunga. Also a single family can use a stroller for three kids and this helps them save a lot of money over time. This adds to the company’s brand image and leads to market penetration capability.

Weaknesses

1. Emmaljunga strollers cost 619pounds which is $1033 today; the prices of other baby stroller products starts from $89 dollars while one of our competition, Peg Perego’s price goes as little as 120dollars. Even though , the quality of the strollers differ from that of Emmalijunga, some individuals will be attracted by the price especially a time when the economy is trying stabilize, and consumer index is just picking up.

Opportunities

1. Babies are born every day; in the U.S. “14.18 births/1,000 population (2008 est.)”[1] This means there will always be a market to sell baby strollers. This reason will cause an increase in the possible market share we gain; leading us to expand in the United States more easily, most especially because Emmalijunga is a known name.

Threats

1. Economic slowdown affecting the economy is creating a challenging business environment, most especially in the United States. This has caused the value of dollar to weaken against other major currency in the world; thereby affecting the cost of goods sold in the country. This slowdown has resulted in weak consumer confidence causing them to hold on to their money or go for products that are less expensive.
2. Direct and Indirect Competitors are another major threat to Emmalijunga, with other manufacturers producing less expensive baby strollers. The effect of these competitors will lead to obstacles in gaining a market share in the United States. This will also affect the price of their baby strollers in the United States; thus, putting pressure on the company’s operating performance if they ever break into the US market. Furthermore, “Strollers by little-known makers are turning up on elite playgrounds across the U.S.”[2] This makes it harder for known names like Emmalijunga to break into the market.

1. http://flagcounter.com/factbook/us
2. Dow Jones & Company, Inc