Strategic Business Analysis Of TOTTO Assignment Sample

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Introduction of Strategic Business Analysis Of TOTTO Assignment

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Totto is a Latin American company which manufactures backpacks, bags, briefcases, etc. fashion goods related to clothing and accessories. This company is spread over the American states as well as other continents regarding Africa, Europe, and other nations. It utilizes several technologies regarding manufacturing, packaging, delivering, and supply chain management among the worldwide business establishments and outlets. This report would help to highlight the business plan and strategic options regarding dealing and operations throughout the firm. Strategic business analysis of this company would help to highlight different business aspects and others regarding business actions and activities.

This report is divided into several chapters regarding identification of strategic options, strategic decision making, three dimensional strategic analysis including financial strength, relative market share, future trends and contingent action plan. Another chapter would help to describe the competitive advantages and recommendations for better operations and activities.

Identification of strategic options

This section of the discussions would help to describe the business action which may be followed in order to develop the business expansion, sustainability, and business development. The key factors which can be discussed for attaining business expansion and sustainability are regarding SWOT analysis, ansoff matrix analysis of marketing and others. These factors are discussed in the next chapter for better decision making in operating any business entity or establishment. SWOT analysis would help to discuss the strengths, weaknesses, opportunities, and threats of the firm and on the other hand, ansoff of marketing would help to discuss the product, price, placement, and promotion of the firm which may help to enhance the skills for the decision making and choices for strategic options for enhancing manufacturing, production, and supply chain management which may further would help to improve the firm’s operations and activities (Otero and Wilson, 2018).

Strategic decision making

This chapter would help to describe the decision making for the strategic options which contribute significantly in the firm’s business dealing and sustainability. Sustainability can be achieved through the strategic decision making and critical analysis of the factors dependent due to the firm's enhanced businesses. It is not a tool or device which measures or controls sustainability rather it is a practice which would help to expand the business of the firm.

Global leaders follow a certain and sophisticated action plan to operate any business entity and aim for sustainability. Expansion of the business is one of the main aims of any business entity which may help to increase profit share, market penetration, and sustainability.

Managerial choices must be made by every company. Such choices for such an organizational objective are dependent on the company's vision, purpose, and objectives, which influence the company's future. Top-down choices frequently shape the company’s direction (Husin et al. 2020). Nevertheless, there really are instances when choices must be taken from the ground up, with individuals choosing the destiny of a specific institution. The fact is that several organizations, particularly businesses, do not make many significant decisions. People have become too preoccupied with making their own choices, such as if they love these goods, we really have to have it inside the outlet today or if they don't really like the commodity, they require to keep it outside of the shop." However, as one may be aware, making judgments might not be the most crucial issue throughout the universe, particularly in the absence of adequate business information. A firm is nothing more than a collection of individuals performing things if the correct critical decisions are not made. A business is a properly defined group of activities with a specific aim or a series of regulations. This is the single organization that possesses all of the necessary ability to carry out a certain task with such a particular outcome. For utilizing the analysis or making everything proper, SWOT and ansoff matrix of marketing would help to understand the company’s inner scenario so that decision making would be easy and effective. The main task of any business analyst would help to determine the market share, market capture, strengths, weaknesses, opportunities, product development, market development, etc because these would help to make decisions for any business leader and initiate the growth of business with strategic decision making.

  • SWOT analysis

This chapter of the discussions would help to describe the four aspects of the organization that may help to evaluate the strategic decisions for the firm. The four aspects are strengths, weaknesses, opportunities and threats which may help to understand the strategic analysis for the firm. Totto is a Latin American brand that creates fashion items such as backpacks, purses, briefcases, and other clothes and accessories. It employs a variety of technologies in production, packing, delivery, and supply chain management across global commercial facilities and outlets. Product specialization, improvements, marketing analysis, etc. are the main operations of the firm to enhance the business all over the globe as well as these may help to take strategic decisions for the business.


One of the main strengths of Totto is to manufacture quality products at an affordable price which may improve the customer accommodations, business management, etc. Totto produces a variety of backpacks and suitcases which are quite impressive with respect to its quality materials, designing, outlooks, and also stitching. Therefore, it can be said that products are the main strength of Totto which may enhance the business operations and aggregations throughout the outlets of the firm. The firm has supplied a variety of products to different business platforms and therefore, it can be said that it has maintained a B2B and D2C business model for selling their goods and products. B2B business operations are related to the selling of commodities or items in other business platforms where D2C business models supply products to the customer directly through offline or online business platforms.

Technological usages in the products enhance the quality of the products like smart backpacks, bags, clothing, accessories, etc. Such items may help to improve the firm’s product line up as well as the sales and marketing. Utilizing advanced technology for the products development would help to capture more customers for adopting such uniqueness in the products manufacturing.

Skilled employees and enhanced people resource management would help to improve the firm’s operations as well as activities regarding market analysis (Serova et al. 2019). Strategies for managing supply chain management would ensure supply of raw materials through the process of vertical integration with the suppliers.

 SWOT analysis



One of the major weaknesses of Totto is regarding delivery of products as well as supply chain management. This section of the discussions would help to demonstrate the weaknesses that Totto is facing recently. One of the major disadvantages of the firm is regarding the technological barriers. Managing the supply chain for any firm would help to determine the sophisticated way of measuring their market demands, supply of resources or materials, delivery of the resources and products timely, etc. But, Totto has a huge problem in managing the supply chain for improving their product delivery, supply, store management, and outlet management.

One of the major weaknesses for the firm is to manage material supply or resource management. Lack of availability for accessing raw materials is also one of the biggest issues for supply chain management.


One of the biggest opportunities for the firm is the business expansion in European countries and other continents. Market penetration and product diversification are the main themes of the opportunities which may help to enhance the business of the firm as well as sustainability. Totto uses technological advances in their products which make their products more innovative and effective. These are the main components of the business opportunities which may help to enhance the business of the firm.

From the market penetration utilizing variant ways of market entry mode, Totto has faced significant opportunities for expanding their business in the European market. Expanding their market in the European territory would help to improve the business operation and activities.


One of the major threats for the organization is regarding free trade agreement, economic recession, and competitiveness inside the market. Market penetration is one of the most effective elements for the business expansion and this should be maintained properly for actual growth of the business and penetrating into a new market full of difficulties, issues, and competitiveness. Competitiveness is one of the biggest threats for any business in case of market penetration and Totto is also faced with huge difficulties regarding competitiveness for monitoring product diversification and market penetration. To dilute the intensity of the competitiveness, the firm must ensure collaboration with local producers and partnership of Asian companies for advancing technologies. Competitiveness is an ornament of market analysis which can be diminished by innovations, accessible technological aspects, and improved supply chain management.

  • Ansoff matrix

Ansoff matrix analysis would help to improve the market analysis of the firm in order to improve the sales and marketing as well as market penetration. This would also help in taking strategic decisions in order to improve market penetration, product development, market development, and diversification. Entrance in the new market can also be facilitated with the strategic decision making and in this case Totto has utilized a variety of methods for strategic decision making in market expansion and sustainability.

Market penetration

This section of the ansoff matrix analysis would help to ensure the market penetration by increasing sales and marketing with existing products in the existing market (Dawes, 2018). This is a low risk factor in managing market penetration but this must be maintained by ensuring sophisticated ways of monitoring those attributes.

Market penetration can be defined as the entrance inside an existing market with the existing products. This would help to improve the sale and marketing and also provide sophisticated ideas for monitoring market penetration in a new market and product diversification. Totto has utilized an effective method for maintaining market penetration with the existing product line up as well as the ensure paths for product diversification and product development.

Figure 2: Ansoff matrix


Product development

Product development is related to the market entrance with the developed product in the existing market. Such a case would register moderate risk for the market entrance of the new products. Product development can also be facilitated by developing new products using technological advances, advanced theories, and others in an attempt to sell their products in the existing market (Adoli and Kilika, 2020). This may enhance the business operation if the business analyst inside the organization maintains a sophisticated way for product development.

Totto manufactures significant and diverse products and sells those in the Latin American provinces which also help to improve new market entrance by evaluating customer responses with the new products. The firm always works for product improvement and this is one of the biggest strengths for the firm because it would help to improve the brand popularity and enhance market expansion further in different other continents.

Market development

Market development is also a component of market entrance which is related to the market entrance with an existing product inside a new market. This is a significant step in order to maintain the marketing aspects for enhancing sales and marketing. This analysis would help to determine the customer motivation as well as response to the new products in the existing market. This can help to initiate the path for product diversification. Risk is always associated in such cases as we don't know how the new market would demand or evolve with time.

Totto already has a huge product line up including backpacks, bags, clothing, accessories, and many others which are associated with the advanced technology and innovations. Therefore it possesses a huge opportunity for market penetration in the new market with the existing products and would face less difficulties each time. One of the most important potential for the company is to expand into European nations and other continents with existing products. It also helps in product diversification and product development also in future.


Diversification is also a component of market entrance with new products and this may produce huge risk for the business operations. But, proper analysis of the whole circumstances would help to improve this product diversification. This is always associated with the high risk if the new product cannot fit in the new market. It is always dependent on the customer's motivation or customer demands. Demographic, geographic, and community analysis should be done in order to improve the sales and marketing as well as monitoring the diversification in a sophisticated manner.

Totto is continuously working to improve the product efficacy with the technology usages to capture market in the existing markets as well as new markets. Facilitating entrance in the new market with the new products would help to expand the business as well as sustainability.

  • Three-dimensional strategic analysis

This chapter would help to highlight the three dimensional strategic plan and analysis regarding financial strength, relative market share, relative market strength, and future trends and contingent action plan. Company’s market share, revenue collection, and market penetration can also be analyzed in order to forecast the future revenue collection and growth.

Financial strength

Financial strength of the company can be determined by considering each and every aspect for the business functions including financial statement analysis, stock equity, sales statistics, net profit, gross margin, etc. These descriptions would help to analyze the market capture, business forecast, and opportunities for market expansion. For discussing the financial strength for a company, it is very important to know the market share and revenue collection through enhanced sales and marketing (Sukma 2019). Promotional strategies are also described in order to improve the sales revenue followed by increasing marketing strategies. The company is facing sustainability by expanding its business operations in the different continents including European nations, African, and Asian markets. Technology driven methodology can also be adopted in order to improve the brand reputation and customer loyalty.

Relative market share

This section of the description would help to demonstrate the market share of the company defining different aspects which may help to analyze the profit share, market capture, etc. In the Colombian market, it has a market share of 5% maximum as it crossed the 20m USD in the current year. In the e-commerce platform it sells a huge quantity of products in different online platforms including Amazon, Flipkart, Meesho, etc. Total global sales in the last year accounted for 33.9 m USD and the global rank is 3502. In the Latin American market this brand has a reputation for manufacturing fashion goods related products for children and young adolescents.

 Market strength of Totto


Relative market strength

This section of the strategic action plan would help to describe the market strength of the company as well as its future opportunities for entering into a new market. Relative market strength would help to compare the product and market share with the similar business giants, and others. Total global sales in the previous year amounted to 33.9 million USD, and the company's global ranking is 3502. Therefore, it can be said that the company is in the developing stage and improving continuously. Because it is one of the most popular brands among children and young people, product variety would assist to increase customer accommodation if properly managed. Therefore, the target community of the brand is children and young people and the company should maintain its product line up quite properly in developing technological aspects and others. If proper strategies and action plan can be administered then, the company would rise to attain 2.5 billion USD market revenue in the coming five years. Sophisticated strategies and implications plan would help to improve the firm’s operations to a great extent.

Future trends and contingent action plan

The purpose of this research is to present empirical validation of a conceptual framework of brand equity as well as its correlations with company loyalty and repeat purchase. The selection of the product under consideration is endorsed by such a report proffered by “Semana magazine” (2016) inside its editorial as the most loved brand in Columbia which showcases Totto as one of the greatest adored manufacturers by domestic buyers, particularly children and adolescents from relatively low and medium socioeconomic strata. Totto is indeed a Colombian manufacturer and exporter of knapsack, baggage, backpacks, shopping bags, purses, clothing, and accessories.

Future trends and contingent action plans for the firm would help to improve the activities and operations for sustainability. Strategic plan and business operations can also be improved through the practices of contingent action plan. As it is one of the most loved brands for the children and young community then product diversification would help to improve the customer accommodation if it is maintained properly.

 Forecast of the market revenue in the coming five years


Strategies including action plan, sales and marketing operations, promotion of brands, and others must be ensured for improving business functions and activities. The target community must be analyzed properly to determine the motivation in an attempt to improve product development and market development.

The above figure would help to describe the market revenue in the coming five years which would help to expand the business as well improve the brand quality. Sales and marketing of the company would rise to a great extent so that it can attain 2.5 billion USD within 2025.

Competitive advantages of TOTTO

This chapter of the discussion would help to describe the competitive advantages that a firm gets from the strategic analysis of decision making and sustainability. Competitiveness throughout an organization can be experienced by many ways and those are dependent on the nature and level of competitiveness. If one penetrates in a new marketing horizon then different strategic factors are dependent on the market penetration.

This section of the report would help to determine the competitiveness which may help to compete with the other similar business giants. It is a way or method by which a firm can get more benefits regarding manufacturing, processing, materials supply, etc to reduce the cost and enhance the quality in a cheap price compared to the other entities (Distanont and Khongmalai, 2020). Competitiveness may help to reduce the price of any products or maintain the quality at an affordable market price. Innovation is one of the key factors which may facilitate competitive advantages in a firm’s operations.

Totto has felt a distinctive and significant competitiveness in the existing market as well as new market. Totto has a market rivalry with Luxury Vegan Handbags, Manhattan Portage, Urban Carrier, and others in the US market and many others in the other market also. In the UK markets, it has also a variant group of competitors which are also competing with Totto and other UK companies. In Columbia it is a renowned brand for manufacturing bags, backpacks, and other fashion goods for younger people. Therefore, it experiences a market facility for entrance not only inside the Columbian market but also other markets too.

Recommendations and conclusions

This chapter of the discussions would help to describe the recommendations for future implementation and conclusions. The recommendations would help to improve the market share, revenue collection, sales and marketing etc which further would help to facilitate sustainability.

The recommendations are

  • Managing supply chain: Supply chain management would help to deliver products to the customer in time as well as maintaining the resource management also (Hossain et al. 2021). Supplying resources in time as well as transferring to the other hubs and outlets properly. Totto must follow this supply chain management for enhancing revenue and profit share in future. Ensuring the raw materials by vertical integration with suppliers would help to manage the resources and hence the supply chain of the firm can also be maintained properly.
  • Enhancing investments in brand promotion: Enhancing investments in advertising the brand and products would help to improve the sales and marketing of the firm as well as gear up the sales and marketing eventually.
  • Partnership with local manufacturers: Collaborative approaches would help to manage the resource supply as well as transferring of materials from one hub to another easily. It would also assist to enhance production and manufacturing techniques.
  • Designing exclusive line up for European market: Enhanced designing and product improvements would help to facilitate the brand expansion in the other continents including Europe, Africa, and others. Market expansion and sustainability can also be facilitated through these practices.

Totto is a backpacks manufacturing company majorly but also focuses on fashion goods and accessories for expanding their businesses in other territories. It produces suitcases, backpacks, briefcases, travel bags, and many others advocating advanced technology. Company’s main target group is the young community and a famous brand in the Latin American provinces including Columbia. Market share, future contingent plan, strategic analysis including SWOT and Ansoff matrix are also provided with detailed description. Strategic decision making can help to expand the business growth towards sustainability.



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