Verified Document

Storz & Bickel: Strengths Weaknesses Opportunities Threats And Trends Term Paper

Promoting Storz & Bickel's affordable vaporizer lines to take advantage of an emerging market explosion. Storz & Bickel is a German-based electrical engineering firm founded by Markus Storz and Jurgen Bickel, who remain in charge of the firm; Storz is director of technology and design, and Bickel is the managing director. Storz & Bickel are basically known for four signature product lines -- the Crafty, Mighty, Plenty, and Volcano model vaporizers. Of these, the Volcano is perhaps the best known, and is Storz & Bickel's best-seller: technology review website Gizmodo refers to the Volcano Vaporizer as "king of all paraphernalia" and notes that "if spending $700 on something to smoke with seems a ludicrous and insane thing to do on your budget…not everyone can afford a Porsche, either" (Frucci 2009). Like Porsche, Storz & Bickel has established its core competency as precision mechanics coupled with attractive design, while both have proved near-impossible for rival firms to imitate. In this sense, Storz & Bickel is essentially a luxury goods manufacturer: it is the high end of a rapidly emerging market.

That market is the market for vaping. Vaping is a process whereby materials that can be smoked are subjected to a heating process which lures the chemicals out into vapor, without any combustion...

This can be done with ordinary tobacco, and it can also be done with cannabis. The fact is that most American consumers are not actually using tobacco in Storz & Bickel vaporizer -- the vape market for nicotine in America is already vast and growing rapidly every day, but largely depends upon liquid nicotine solutions (often flavored) that are sold to go with the vaping device. Storz & Bickel's Volcano has a patented system in which the vapor is collected in a large balloon, and inhaled from there. Most consumers who own a Volcano use it for cannabis.
This is crucial for understanding Storz & Bickel's customer-orientation strategy. Vaping has exploded in popularity in America in the past several years: Wal-Mart, Costco, and Target stores all sell e-cigarettes, while "vape shops" have begun opening everywhere. The difference lies in location: in Denver, CO for example, Storz & Bickel equipment can be sold openly for the purpose that most consumers purchase it, which is recreational consumption of cannabis. In Los Angeles, cannabis requires a medical prescription However, in New York City, Storz & Bickel equipment is legal to sell, but…

Sources used in this document:
This is crucial for understanding Storz & Bickel's customer-orientation strategy. Vaping has exploded in popularity in America in the past several years: Wal-Mart, Costco, and Target stores all sell e-cigarettes, while "vape shops" have begun opening everywhere. The difference lies in location: in Denver, CO for example, Storz & Bickel equipment can be sold openly for the purpose that most consumers purchase it, which is recreational consumption of cannabis. In Los Angeles, cannabis requires a medical prescription However, in New York City, Storz & Bickel equipment is legal to sell, but not to promote as a cannabis-consumption device.

The chief difficulty in terms of a SWOT analysis for Storz & Bickel is the current market landscape. Market research firm ArcView issued a 2015 report The State of Legal Marijuana Markets (Third Edition) which explains how rapidly this sector is growing: they estimate the market was 1.5 billion in 2013, and experienced 74% growth to 2.7 billion in 2014 (5). This is for a product that is still not legal in most (but not all) areas where it is consumed. We can therefore imagine the continuing growth trend for this market, and thus inquire what role Storz & Bickel as the sole luxury-goods manufacturer in this emerging market can do to establish their scope and direction as the market gets bigger.

A SWOT analysis for Storz & Bickel thus begins with the last T, for Trends. We have established what the trends for this market are like -- phenomenally good. The question remains as to what the Strengths, Weaknesses, Opportunities, and Threats are for Storz & Bickel to attempt
Cite this Document:
Copy Bibliography Citation

Related Documents

Customer Retention Without Planned Obsolescence
Words: 910 Length: 2 Document Type: Term Paper

difficulty with customer retention for Storz & Bickel is that their chief high-end product, the Volcano Vaporizer, lacks "planned obsolescence." I am using the term that was devised by Alfred P. Sloan for the Ford Motor Company, but this is now basically a strategy implemented by all major manufacturing corporations -- in some sense, the point of an iPhone 5 is that it will eventually be made obsolete by an

Lesson Plan Amp; Reflection I Didn't Know
Words: 857 Length: 3 Document Type: Essay

Lesson Plan Amp; Reflection I didn't know what state you are in so was unable to do state/district standards! Lesson Plan Age/Grade Range; Developmental Level(s): 7-8/2nd Grade; Below grade level Anticipated Lesson Duration: 45 Minutes Lesson Foundations Pre-assessment (including cognitive and noncognitive measures): All students are reading below grade level (5-7 months) as measured by standardized assessments and teacher observation Curricular Focus, Theme, or Subject Area: Reading: Fluency, word recognition, and comprehension State/District Standards: Learning Objectives: Students will develop

Branding New Service Dominant Logic
Words: 12522 Length: 50 Document Type: Dissertation

Branding in Service Markets Amp Aim And Objectives Themes for AMP Characteristics Composing Branding Concept Branding Evolution S-D Logic and Service Markets Branding Challenges in Service Markets Considerations for Effective Service Branding Categories and Themes Branding Theory Evolution S-D Logic and Service Markets Branding Challenges in Service Markets Considerations for Effective Service Branding Branding Concept Characteristics Characteristics Composing Branding Concept Sampling of Studies Reviewed Evolution of Branding Theory Evolution of Marketing Service-Brand-Relationship-Value Triangle Brand Identity, Position & Image Just as marketing increasingly influences most aspects of the consumer's lives, brands

Strength Based Approach Strength Displayed Togetherness Even
Words: 638 Length: 2 Document Type: Essay

Strength Based Approach Strength Displayed Togetherness Even though Merridy is divorced she still maintains a relationship with her ex-husband so her children can spend time with him Sharing Activities Tony's new partner's child, Heidi lives with Tony. Ray and Joe are now exposed to another child. Tony must share his attention between the three children. The children's time spent at day care also contributes to sharing activities as well. Affection Ray is very affectionate, and trustworthy of his

Strength of U.S. Dollar in Relation to
Words: 983 Length: 3 Document Type: Term Paper

Strength of U.S. Dollar in Relation to the Exchange Rate. There is no question that most people consider a "strong dollar" to be an overall good thing. After all, it just feels good to change one's U.S. dollars for Canadian ones, for example -- it makes one feel ahead of the game before setting foot outside of the exchange building. However, as joyful as one might feel in the initial stages

Weaknesses of the IRR Method: The Internal
Words: 619 Length: 2 Document Type: Essay

Weaknesses of the IRR Method: The Internal Rate of Return (IRR) is considered as the discount rate that makes a cash flow's net value equal zero and it's the most useful means of project evaluations. Actually, the IRR method is one of the most widely used methods of measuring project worth as well as economic and financial analysis by many institutions like the World Bank. This is because this method represents

Sign Up for Unlimited Study Help

Our semester plans gives you unlimited, unrestricted access to our entire library of resources —writing tools, guides, example essays, tutorials, class notes, and more.

Get Started Now