DEFINITION OF SWOT
SWOT analysis is an important tool for auditing the overall strategic position of a
business and its environment.
SWAT ANALYSIS IS USE TO ANALYSE WHERE THE ORGANISATION STANDS.
SWOT ANALYSIS:SUMAL AL DUKKAN ( Shop Name)
S- STRENGTH
W- WEAKNESS
O- OPPORTUNITY
T- THREAT
STRENGTHI - CONVENIENCE:
Its biggest advantage is its strategic location. Within a region of 35 km it will be the
only shopping Centre. With the opening of this shopping centre, people are bound to
come.
II - LEADING BRANDS.
Due to an increase in disposable income over years, local residents have more money
to spend on Branded & Luxurious Products. The shop will have powerful brands with
a wide range of products, all in one store. It will be a reputation for value for money.
III - GOOD DISTRIBUTION CHANNELS.
Company has organized a powerful cost efficient network of suppliers & distributors.
IV - GOOD SKILL EMPLOYEE.
A focused strategy will be in place for human resource management and
development. People are key to any business and the shop will invest time and
money in training & development of the new employees & also it will higher highly
skilled professionals.
V -
STRONG MANAGEMENT.
The shop has a management team with different diversified skills, high moral &
dedication. Every individual has a vision to take the shopping centre at the highest
level of success.
VI – Future Leader.
As it will be the first shop in the region, in future with growing market potential of
the region, The Shop will be in a position to define the rule of the market.
WEAKNESSI- DISTANCE.
It is far from the City so it may not be very convenient for the City people, but it wont
have an adverse effect on the shop success, as it will target to the local customers.
II AVALIBILITY OF RESOURCES.
As it is at a distant place from the city, the resources are limited & transportation cost
may cause an increase in the price of the products but due to its strategic location, it
is obvious that the people will be ready to pay the premium as it will save their
traveling cost for atleast 70 kms (35+35).
III Non Flexibility in some products:
As the shop will sell products across many sectors (such as clothing, food, or
stationary etc), it may not have flexibility & competitive advantage in some of the
products, compared to some more focused competitors.
IV Lack of amusement parks & cinema halls near the Shop
It may cause lesser attraction for the families.
OPPORTUNITY- THE MARKET IS NEW SO WE WILL HAVE LOTS OF OPPORTUNITY
1 CHANGE CUSTOMER TASTE.
With the increase in incomes of the local people, they have developed an affection
towards the branded & Luxurious European Products. Company has the opportunity
to encash the opportunity.
II TO GRAB MARKET OPPORTUNITY.
The Population of the region is growing day by day. As a result within few years it
this place will be a big market hub. At that time, as our shopping centre will be the
oldest one, it will definitely have an advantage to penetrate the larger section. Also it
may go for an expansion plan.
III Advertisement
It can sponsor some events (not just in-store events) to increase recognition of the
it’s brand name and make customers more aware of the products & services that it
will offer.
IV CUSTOMER SATISFACTION.
By seeing the future growth potential of the region, shop should win the customers
loyalty by its Products quality & Services.
V Expansion Plan
The shop should start its operations with a future expansion plan in its mind.
THREATIt Being the only shop in the region means it will always be targeted by the
competitors. There will be a high probability of entrance of new competitors in the
market.
II- BUSINESS POLICY CHANGE BY THE GOVERNMENT.
III- INCREASE IN TAX.
CONCLUSION
It is a good opportunity as today it’s a very good unexplored market for the business.
People use to travel more than 70 kms for shopping. If they can get same product in
their own area, they will definitely purchase the product from our shop even at a
premium cost.
We just have to understand their needs & wants and serve them in best manner.
There is a high demand of European products in the region which have a higher
profit margin. We should specialize ourself in the similar products to maximize our
revenue & strengthen out future existence.
With analyzing the future market potential of the region, we should open the shop
now & became the leader tomorrow.