Company background

The grasp of Rosetta stone inc on social networking is far behind as it has only 100 million

cutomers of language on Rosetta stone inc plus as compared to Berlitz having more than 700

million users. And as they remain overall market leader in the industry, their international

reach in emerging markets such as China leave much to be desired and acquired. With the

increase in growth in industries revolving around technology and the internet in particular,

many opportunities are in front of Rosetta stone inc. Growth in Internet and mobile

promotion lead the way for increasing status of search engines optimization for pushers.

Finally as far as the threats related to the continuous success are concerned, the top threat is

increasing competition. Currently due to expansion in the range of services of Rosetta stone

inc the competition has increased beyond just other search engines.

Issues and challenges

 They major issues are sustainability of Rosetta stone Inc in the market
 Highly vibrant market need changes explicitly
 The language has booming and competitor like Berlitz used innovative ways to

attach customer
 The mobile is application provides language services as cheap as 1.50 USD Dollars.
 SWOT Analysis

SWOT analysis is conducted to find the position of the company in the market place

it cover two internal factors and two external factors the two internal factors are strengths and

weaknesses, and the two external factors are threats and opportunities. In this analysis all the

four factors have been discussed in detail.

Strengths

Following are the major strengths of the Rosetta stone inc incorporation:

The mission of the company is to provide language services of the whole world and

the same is represented in each and every product of Rosetta stone inc which is its top most

strength.

Rosetta stone inc products such as the language program are compatible with any

operating system which shows its openness for everyone.

The products and services offered by Rosetta stone inc language program are quality

products and do not deceive the customers.

 The products are user friendly and are aimed to solve the problem of every costumer

from any area.

Rosetta stone inc is among the most profitable companies in the world this strength

helps the company to hire the talented minds and purchase language program.

Rosetta stone inc is the one service provider that is in access of maximum costumer

of internet and mobile internet.

Rosetta stone inc helps its customers to buy and sell the products language program

of all types at any place to any person.

The portfolio of patents is very strong and the intellectual property is the key to

success for the company.

Rosetta stone inc products are integrated with all other products of the company and

also with the products of other operating systems. .

The organizational culture of Rosetta stone inc is very supportive and all the

employees work in a friendly environment

The innovative culture helps Rosetta stone inc to produce new and innovative

products and services every year.

Rosetta stone inc is the second patient creator in the world which shows its innovative

nature.
Weaknesses

Following are the major weaknesses of Rosetta stone inc incorporation:

Rosetta stone inc is mainly relying on only one income source. Let’s suppose that if

due to any reason advertisement on internet is banned the business of the company will be is

the major threat of sustainability.

Due to only one earning source the growth of the profitability is not sustainable and

may face stagnant position anytime.

The desktops are decreasing due to mobiles and Rosetta stone inc is experiencing

slow growth in the search through desktop so not diversify its earning source is a major

weakness.

Many products of Rosetta stone inc are not profitable but are just for the sake of

capturing the market which in future may cause serious issue as it is relying only on one

earning source.

Non profitable products are the source of continuous losses and are therefore,

decreasing the profits of the company.

Rosetta stone inc has to face litigation of patients due to breach of patents and

copyrights issues.
 The litigation is costly and also affect the business performance as well as the fame of

the business.

Opportunities

Following are the main opportunities for Rosetta stone inc:

User of mobile internet is increasing and the products offered by Rosetta stone inc re

compatible for all the services.

Rosetta stone inc has the ability to purchase maximum patients by acquisitions as the

financial position of the company is very strong.

Rosetta stone inc has introduced language software. This feature can easily be

installed any upcoming car and thus the market of Rosetta stone inc may enhance

significantly by this feature and this feature may also decrease the dependency of Rosetta

stone inc on a single earning source.

Rosetta stone inc has launched few models of notebook, tablets and smartphones and

this market is growing at a rapid speed which is a major opportunity for Rosetta stone inc.
 Fiber cables are used now a days and Rosetta stone inc is testing new Rosetta stone

inc fiber cable which will be 100 times quicker than the current cables if succeeded then it

would be a great source of earning for Rosetta stone inc in the future.

Threats

Mobile users are increasing and due to small screen of mobile it would be difficult to

place ads on it. As the major source of earning of Rosetta stone inc is advertisement so in

future it may be a major threat for the company because if people will start using internet

only on mobile then the earnings of the company will be in jeopardy.

The unprofitable product of Rosetta stone inc are many which are burden on the

company, if the company continue to produce such products that have more cost as compared

to benefits the profitability of the company will fall.

The suit against Rosetta stone inc is a major threat that Rosetta stone inc presents its

products more dominantly as compared to its competitors an if found guilty then the

company has to my sever damages.

.
 TOWS Matrix

TOWS matrix is the same as that of SWOT analysis, but this matrix helps to develop

many strategies for the company. In TOWS matrix strategies are broken down in the

following strategies:

SO strategies: these strategies use internal strengths to take advantages of external

opportunities.

WO strategies: these strategies helps to rectify the internal weaknesses by taking

advantages of external opportunities.

ST strategies: these strategies are used to avoid external threats by the use of threats.

WT strategies: these strategies are used for the defense of the company to avoid

threats and weaknesses.

Internal strengths Internal weaknesses

 Brand strength  Unfavorable

 Market leadership in
TOWS Matrix revenue of mobile
search engines
 Successful in android apps
 Dependence only
market
 Increased revenue on search

though search engine advertising

 Lawsuits of
and low traffic cost
patents and
 copyrights
 Facebook growth

as social media
External Opportunities SO1: WO1:

 Sustainable Strong brand image helps to Display advertising

growth in advertising gain the market growth and mobile

 Growth in
SO 2: advertising but low share
advertising
 Expansion in Growth in mobile advertising like apple

mobile market and reduced cost of acquisition WO2:

 Diversification
SO3: Internet market is

Mobile market is growing and growing but in social

Rosetta stone inc is acquiring media Facebook is more

maximum market through advanced and penetrated

mobile software as compared to Rosetta

stone inc
External Threats ST1: WT1:

 Outcome of Brand strength may help to Competition and

litigation could prove survive in competition unprofitable products

 Competition
ST2: may cause losses
from several sources
 Competition Android market may help to WT2:

may affect revenue face completion from Competition from apple

and profitability competitors like apple and competition from

social media like

 Facebook may also

decrease revenues

WT3:

Law suits and low

profitable products may

cause a major decline in

profits

Strategy Recommendations

As far as the competitive liabilities and resource weaknesses are concerned Rosetta

stone inc has less weaknesses as compared to its strengths. But these weaknesses could have

serious implications in the future for Rosetta stone inc. As the TOWS matrix is showing few

threats and the need for defensive strategies for certain issue. The top most activity the

company should do is to stop the development of unprofitable software to minimize costs of

those applications. Secondly the company should diversify its earning sources as it is a

common saying that never put all the eggs in one basket. So the revenue sources should be

increased to remain safe.

As Microsoft still holds 97% of the market share of office applications. Along with

Microsoft Rosetta stone inc has a strong competition with widely spread mobile phone search

industry. Rosetta stone inc has a pressure from all the five forces of competition, but the

magnitude of forces is not equal perhaps the weakest is buyers bargaining power.
 The company should market its social media to capture the market of Facebook and

should develop Rosetta stone inc plus easier, more friendly, and more attractive so that the

costumer of Facebook may shift to Rosetta stone inc plus.