SWOT Matrix is essential in the business to be able to identify the strength, weakness ( or the internal
business environment factors) opportunities and threats ( the external business environment factors) to
develop strategies that would help the business to achieve the strategic objectives and operate at the right
direction.
"Every big businesses starts small".Sari-Sari store is considered to be one of the simplest and somehow,
the easiest business anyone can start-up today.
BUSINESS BACKGROUND
The business I choose to create a SWOT Matrix analysis is a Sari-Sari store owned and manage by my
grandmother who operates for more than 40 years in the industry.
A SWOT Matrix for a Sari-Sari store (Erlinda Sari-Sari store)
Strengts
Weakness
1. Competitive pricing, selling 1. Competitors can offer similar
most cheap goods among goods.
competitors in the market.
2. Requires high capital.
2. Fast, accommodating, and
3. Customers credit.
good customer service.
3. Demographic area is clean and 4.competiton is tough due to ease
of entry.
accessible.
4. Serves for 40 years in the 5. Old building structure.
industry.
5. Customer loyalty
Opportunities
SO Objectives
WO Objectives
1. Location is near in highway
1. Continue giving quality and 1. Offer new products/goods in
cheap goods.
the market ( like meat, chicken,
2. Crowded neighbor community
hotdogs etc.)
2. Maintain complete stocks.
3. The goods also serves as daily
2. Set limitation on customer
stocks.
3. Granting of discounts with credit.
minimum purchase of 500.
4. Number of neighborhood
3. Repaint and renovate the store.
household increases.
4. Giving of tokens/ gifts for
loyal customers during Christmas 4. Calculate thoroughly the mark5. You are the boss of your own seasons.
ups to increase margin.
business.
Threat
ST Strategies
WT Strategies
1. Many competitors in the area 1. Store expansion meters away 1. Not allowing credit on
selling the same goods.
from the road.
customers
which
have
outstanding existing balance.
2. Threat from natural disaster 2. Be updated in paying
like typhoon.
government obligations.
3. Subject
regulations.
to
government
4. Possibilities of road expansion/
widening.
5. Opening of new competitors.