The marketing department in Neo-Neo is made up of America, Europe, Asia and China with more than 300 sales. The department can protect the group from the differences from different markets though differentiating marketing strategy. The main promotion channels are exhibition and magazines, sales in Neo-Neo always build up business relationship with the potential customers, but this promotion channels seem to outdate with the development of E-business. The salary of sales is comprised by basic salary plus commission and other welfare, this system greatly motivates the sales and ensures the development of marketing department. But the marketing department has a large mobility population, even in the lower mobility area, more than 10 sales and 2 managers leave their position only half a year. This results from the unclear division of each department (Shilata, 2010).
Neo-Neo group owns plants with total 60000 Square meters which provides the enough rooms to make mass production. The advanced machines can manufacture thousands of different products at the same time. Thosefacilities also satisfy the demands from adjusting the product mix or new creations to the changed external environment. On the respective of purchasing system, the main suppliers are from Chinese mainland and Taiwan, to control the cost, Neo-Neo makes less purchasing orders to its suppliers. But for the key material, take LED chip，Neo-Neo makes larger order than its actual demands in case of shortage. This purchasing method takes up large capital in the key material. On the respective of quality control, Neo-Neo was awarded IS09001 certification by the Det Norske Veritas in 1997. According to its regulations, the team should assure all the products can meet the standards and requirements of IS09001. The controlling contents include material purchasing, production process and R&D process. On the respective of inventory management, the stocks in Neo-Neo are made up by raw materials, semi-manufactured goods and finished products. To improve production, the group always produces the parts in the slack time to prepare for the next busy time, but these methods always increase the level of inventory.
According to Ambler (2000), SWTO analysis is a useful tool to evaluate the whole environment and help the strategy-maker to identify the opportunity, threat in the external environment and strengthens weakness in the internal environment. There are four strategies in the SWTO matrix: SO strategy; WO strategy; ST strategy and WT strategy. SO strategy emphasizes on developing the internal advantages and taking advantages of external opportunity; WO strategy refers to taking advantages of external opportunity to avoid internal weakness; ST strategy focuses on developing the internal strengthens to avoid the external risk; ST strategy refers to decreasing the external risk at the same time of inducting the internal weakness.
S (strength) W (weakness)
SO strategy WO strategy
External Environment O (opportunity)
ST strategy WT strategy
Figure 3 The SWTO matrix (Weihrich 1998)