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SWOT Analysis for Eco7: Launching a New Motor Oil
SWOT Analysis stands for – Strengths, Weaknesses, Opportunities, and Threats that Eco7
Jonnerson encounters both internally and in macro environment that it operates in.
Strengths and Weaknesses are often restricted to company’s internal - resources, skills and
limitations.

Opportunities and Threats are factors that are analyzed in view of the prevalent market
forces and other factors such as economic , political, legal & environmental, social, health &
safety, and technological.

According to global executive survey done by Harvard Business Review & Brightline Initiative
– Only 20% of the strategic targets set by organizations are realized. Rest 80% of the
strategic targets are not achieved because of incomprehensive planning, limited resource
allocation, and poor execution.

The successful organizations such as Eco7 Jonnerson are the one who able to predict market
trends better than others, provide resources to develop products and services to leverage
those trends, able to counter competitors’ threats, and meet customers’ expected value
proposition.

Case Description of Eco7: Launching a New Motor Oil

Case Study

Aaron Jonnerson, vice president of marketing at the automotive division of Avellin,

must make marketing mix decisions for the launch of Eco7, a new environmentally-
friendly motor oil. The company's performance has been mediocre, shareholder
pressure is increasing, and expectations are high for Eco7. However, Jonnerson faces
significant challenges in ensuring a successful launch. The market for passenger car
motor oil (PCMO) is mature and consumers are price-sensitive. Furthermore, the
independent oil change outlets that are Avellin's core customers have declined
relative to other channels. Jonnerson must design the best pricing strategy to ensure
a successful launch. The Eco7 case asks students to examine consumer behavior and
channel conflict and factor them into a product launch. The launch comes at a time
when the company may need to adapt to changes in a market that is increasingly
commoditized and in which the relative importance of different distribution channels
is changing. Students are asked to make recommendations on pricing and
distribution and to consider which trade-offs the company should make.