Swot Analysis Report On Dji Innovations Company

Just a decade ago, smartphones did not exist. About three decades earlier, most people did not own a computer. Technology is progressing faster than ever, especially in the Drone market. A drone is an aircraft without a human pilot aboard, and most people associate them with expensive military aircrafts or small consumer toys. Today, the usage of drones has broadened in many different industries due to their ability to capture high quality videos and pictures, as well as drive efficiency and data analytics. Drones have slowly integrated into the civilian and commercial sectors in the last couple years thanks to rapid improvements in technology. But as the industry continues to grow, and as more consumers are tempted towards owning a drone, there are many factors drone companies need to consider in order to stay ahead of the game. One manufacturer that has done this considerible well and is leading the market of these small aircrafts is DJI. Based in Shenzhen, China, and offices in the U.S, Germany, the Netherlands, Japan, South Korea, Beijing, Shanghai, and Hong Kong, according to Business Insider, DJI innovations is the current leading name by owning an approximatelty 70% share of the drone market. DJI has just introduced the new Mavic Pro 2 to the market and it seems to be the new ultimate tool for aerial content creation with new intelligent flight modes that make capturing quality results almost effortless.

Opportunities

DJI has done an incredible job at increasing their sales and their stock value in the last 5 years. They have a great opportuity to keep increasing these areas and stay ahead of their competitors and cultivate the brand’s loyalty. This requires the company to maintain contact with consumers to gain feedback on this and other products. DJI has done an incredible job at building a strong bond with their loyal customers. Another opportunity that we cannot avoid to discuss is the great advantage that DJI and its MAVIC product line is taking at targerting different indrustries and professional markets. Drones have definitely revolutionized sports-coverage, wildlife monitoring, science and education, commercial and motion picture filmmaking, mineral exploration, and many other markets which DJI has expanded possibilities for creators around the world.

Threats

For every opportunity that presents for DJI and the drone industry there are also threats that could potentially hurt the business. The first threat that affects the drone market is the Federal Aviation Authority that puts many different restrictions and regulations on these small aircrafts. This is completely beyond the company and consumer’s control. These rules and regulations can be very strict when it comes to objects in the sky. But, with technology progressing in a rapid manner these days, some of these rules can somewhat be modified as new innovations in drone design make it out in the market. Another threat for this product is how negligent or reckless pilots can breach public privacy and safety. The drone industry has grown so rapidly that sometime piloting one of these aircrafts can be taken for granted and could potentially harm civilians. I noticed this was a big concern to the public because reckless piloting or technical malfunction could cause an incident.

Strenghts

As I mentioned earlier, DJI is the current leading name in the drone industry. This is definitely their biggest strenght since they have gained an incredible reputation and brand loyalty. They also offer an incredibly diverse line of high quality products (Mavic being one of the most succesful ones) with a wide range of prices. This helps the company target all types of consumers and professional markets. While these small aircrafts might seem like toys, they are an easy way to add production value to film projects, or capture unique images of the world for your travel page. These quadcopters are a serious investment for most consumers. For the first time DJI’s new Mavic drone has flight sensor in all sides of the aircraft, making it easier for the pilot to capture the perfect moments without any interruption. Battery life is another factor that has a big impact in consumer’s preference. DJI Mavic has improved their battery life from 23 to 29 minutes in the last two years.

Weaknesses

After researching DJI’s Mavic line, I must say these designs lean more towards the premium type of product, which means they could be somewhat unaffordable for most people. This is how DJI’s competitors seek to edge in on the market by undercutting them with more affordable prices. Most consumers have never flown a drone, and they would not want to spend hundreds or even thousands of dollars on a product they could brake or lose in a wind gust in their first flight attempt. Another weakness that I have identified is DJI’s customer service. It seems like DJI is lacking in terms of product servicing making consumers frustrated. This eventually leads to customer and profit loss.

Strategic Actions

Drone makers have been significantly influenced by the rapid technological developments that has allowed them to turn movies and books into real life applications. DJI has an amazing opportunity to adapt to the needs of different industries. Innovating an creating different products for different industries could be a good way to continue to expand and raise awareness of the drone market. More affordable drones can be created and realeased to the market to target those who are not able to pay the premium price. Although, this has to be done with cautios since they have to keep in mind that they need to have acces to a solid supply chain.

Overall, DJI is doing an incredible job with their high quality products but there is always room for improvement. DJI should focus more at carefully listening and attending customer needs and desires to keep their customers satisfied and loyal to the brand in a more efficient way. It seemed like most complaints revolve around the time it took to get answers from DJI when a product was having technical issues. DJI can also continue to innovate and create newer drone models that could potentially bypass many of FAA rules and regulations so that eventually consumers will want to invest in such product and be able to pilot the aircraft in a more fashionable manner.