Reference no: EM133419844

Make a SWOT analysis for the following

Early on, the company's annual EPS exceeded the inventor's expectations; but, as time went on and they were unable to find a way to reduce their cost of goods sold, net income and EPS started to decline. The corporation looked into stock repurchases and dividend payments to appease investors, and its ROE was good in the early going. But, when the corporation started to fall behind in the game, its ROE suffered significantly and its free cash flow was almost always negative. The corporation took out a few loans to maintain its ROE and protect its financial situation. The business was finally able to get its ROE back to normal levels through the use of financial investments. Instead of employing a specific stock price strategy, the business aimed to promote buyers by using techniques to make its EPS look beneficial to both present and future investors. They increased their cost per pair to a level that was more than the industry average in an effort to match investors' expectations for image rating. The most crucial information from this paragraph is that throughout the early stages of the game, the management strategy was to maximize earnings and increase profit margins by whatever means necessary. The management team realized they needed to balance market share and profit margin estimates more when the results for that year revealed that the 8.2% market share was much lower than the 12.5% industry average. To be more competitive with the market, they reduced their prices and raised the caliber of their goods. The profit margin remained high in the years that followed, but the overall pattern of performance changed. The management team decreased prices and raised the percentage of clearing discount to clear away outdated inventory in order to achieve the demand-supply balance. Even while the new strategy had little impact on net profitability, it raised sales and helped them establish a stronger reputation.