Polytechnic University of the Philippines

Pulilan, Bulacan Campus

ENTR 20053

ACTIVITY #6

Submitted by: Year and Section:

Galuza, Bryan James V. BSE 3-1

SWOT Analysis of Unisilver

STRENGTH

Sustainable Competitive Advantage 

Customer Loyalty Unisilver sustained this front of their pursuit for customer loyalty by : offers jewelry cleaning for
free by only presenting the stab given after purchasing the product. Gives loyalty cards for customers who
purchased products in which the total price meets or exceeds the minimum amount for giving loyalty cards.

The company also takes in consideration the location of the mall itself if it fits their requirement upon having a
store. Unisilver offers most of its efforts towards retail location. An example of this is their location strategy in Sta.
Lucia East Grand Mall. 

Growth Strategies 

Market Penetration Unisilver performs this opportunity by having more stores in the target market which also
includes more displaying of merchandise to increase impulse purchases.

Product Development 

Provided a new product which is made to satisfy the wants of its current customers to purchase a timepiece made
with the brand. Which can probably increase the loyalty of its customers and may also attract non-users. 

Diversification

The company does vertical integration wherein it involves investment of retailer, wholesaling and/or
manufacturing. Unisilver Group International Corp. is the mother company of Unisilver. Unisilver Group
International Corporation performs the whole distribution process making it fully an integrated company.

WEAKNESSES

Excessive focus on jewelry: 

Unisilver has been focusing entirely on jewelry and while the opportunities are growing in other domains such as
clothing, accessories or textile. This focus will result in the company being unable to sustain in the long run.

Poor communication strategy:

In this age of advertising Unisilver has not been able to maintain or develop a clear communications strategy. The
poor advertising effectiveness of the company has resulted in reduced visibility for the brand with the result that
other stronger brands have taken over.

Poor planning: 

Though operationally the company was doing good, the company had to consecutively increase their prices in
order to supplement the poor margins. In addition to this, they also had to continuously re-engineer their products
in order to satisfy their upmarket customers.
OPPORTUNITY

Opportunities refer to those avenues in the environment that surrounds the business on which it can capitalize to
increase its returns. Some of the opportunities include:

Changing customer preferences: 

People are choosing to spend more and more time on shopping as the disposable income has increased. The
popularity of online shopping store has created a new channel for retailers. There are also various new categories
in jewelry like antique, gem, handcrafted etc. All these present a host of opportunities to Unisilver.

Threat

Threats are those factors in the environment which can be detrimental to the growth of the business. Some of the
threats include:

Competition The main competitors of Unisilver are Pandora Jewerly, Silverworks, INTERNATIONAL JEWELRY
MANUFACTURING INC., Mirage Jewels Philippines and etc…..

Unisilver analysis using Porter’s Five Forces

Competitive analysis and rivalry

The competitive landscape market of Unisilver

 Customer service provides services which include free cleaning personalizing of jewelry (engraving and
manufacturing of jewelry with personalized style)
 Salespeople are trained with expertise in customer handling and sales talk
 Transactions are fast and efficient because each salesperson acts also as a cashier.
 Their most competitive component of their retail mix is their pricing strategy. Unisilver sells with quality but
low-priced products. 
 The latter appears in different sizes and designs which suits your choice. Unisilver designs observably fits
each occasion
 Unisilver variety of product includes: tiffany-styled bracelets, necklaces for men and women, silver
bangles, Pendants, Rings, Anklets, earrings (studs and dangling). They also offer sterling silver jewelries
for infants. Unisilver Time which pertains to watches exclusively made by Unisilver.
Jewelry Market Size by Materials

LIST OF EMPLOYMENTS AND EMPLOYEE OF THE JEWELRY INDUSTRY

JEWELRY MARKET SHARE BY PRODUCT

RETAIL SALES GROWTH IN THE PHILIPPINES

Customer Loyalty Unisilver sustained this front of their pursuit for customer loyalty by : offers jewelry cleaning for
free by only presenting the stab given after purchasing the product. Gives loyalty cards for customers who
purchased products in which the total price meets or exceeds the minimum amount for giving loyalty cards.

The company also takes in consideration the location of the mall itself if it fits their requirement upon having a
store. Unisilver offers most of its efforts towards retail location. An example of this is their location strategy in Sta.
Lucia East Grand Mall. 

Growth Strategies 

Market Penetration Unisilver performs this opportunity by having more stores in the target market which also
includes more displaying of merchandise to increase impulse purchases.

Product Development 

Provided a new product which is made to satisfy the wants of its current customers to purchase a timepiece made
with the brand. Which can probably increase the loyalty of its customers and may also attract non-users. 

Diversification

The company does vertical integration wherein it involves investment of retailer, wholesaling and/or
manufacturing. Unisilver Group International Corp. is the mother company of Unisilver. Unisilver Group
International Corporation performs the whole distribution process making it fully an integrated company.

Supplier influence and power:

The bargaining power of suppliers in the Jewery industry can be considered very high. When looking at the major
inputs that Jewelry companies need, we see that they are especially on Gold, silver, nickel, Diamonds and other
luxury materials. These inputs however are very much affected by the external environment over which the
Jewelry companies themselves have little control. The price of their material is subject to the fluctuations in the
global market, which can change wildly because of geopolitical and other factors.

Bargaining power of buyers

Bargaining power of buyers in the Jewelry industry is high. Customers are able to check prices of different jewelry
companies fast through the many online price comparisons websites . In addition, there aren’t any switching costs
involved in the process. Customers nowadays are likely to fly with different carriers to and from their destination if
that would lower the costs. Brand loyalty therefore doesn’t seem to be that high. Some Jewelry companies are
trying to change this with frequent flyer programs aimed at rewarding customers that come back to them from time
to time.

Threat of substitute products

In terms of the Jewelry industry, it can be said that the general need of its customers is Luxury items. It may be
clear that there are many alternatives for Luxury Items. Depending on the Form and designs, customers could
take the stainless materials jewelry or fake jewelry that maybe suits them well. Stainless materials jewelries and
fake jewelries is a serious threat for the jewelry companies, many talented people replicate the jewelries using low
kind of materials and many customers are attracted in that items because it is low cost in price than the original
jewelries.

Rivalry among existing competitors

The barriers for the new entrants aren’t very high for the reason that the capital requirements to enter in this
industry are low and one can easily enter into this industry and can earn a name for the reason that the demand
for gold and diamond jewelry is high. It’s been called medium for the reason that the rules and regulations by the
government to enter in the industry are really strict. Also to enter into the jewelry industry, one requires skilled
manpower for the reason that is an essential thing in this regard. The last but not the least thing that makes the
threat of new entrants medium for this industry is advanced technology requirement, which is really essential to
enter this marketplace.

Analyzing all the forces business will assist you to get to know about all the strengths and weaknesses and then
take appropriate steps accordingly so that could maximize your success chances.