Sample Essay

Makatume is a Japanese manufacturer of power tools which is operating in the market as well. The specialization of the company is manufacturing high quality and durable power tools which are sturdy and efficient in nature. The company has a large portion of the Japanese market for power tools, which is dominant at 50 percent. Moreover the company now is employing the same strategies as it did in Japan to establish itself in the market as a dominant position for it self in the US market as well. Already the company holds the position of the second largest manufacturer and provider of power tools in the United States. Moreover the company has also been able to take advantage of the favorable exchange rate to earn profits on their sales in the US.

The weaknesses that are present to the Makatume Company pertain to the facts that it is facing a voltage issue in the power tools market. Currently products of the company present in the US market are lower voltage products thus having limited strength and power. These are currently being used through interchangeable batteries but in the long run the company can lose its position to a much better power tool provider. Specifically because the main market for the company is the professional power tool segment. Aside from this the company is losing its strategic cost position as the exchange rate for Japan and the united States is now changing trends and therefore it is becoming increasingly expensive and unfavorable for the company to manufacture its products in Japan and sell them to the market in United States. The Chinese imports of lower priced and higher quality power tools are also a very real threat for the company.

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