SWOT Analysis Examples: Strengths

Possible Strengths

Response

Is it a strength?

Tangible Strengths

Consider your assets including plant and equipment

Assets are really only shop fittings and stock with two computers and software.

No

Do you have long-term rental contracts for your business locations?

3 + 3 + 3 year lease in major shopping center, location within the shop is at the will of the center, poor sales will result in a shift to a low foot traffic location.

No, same as our competitors

Are your products unique or market leading?

No, stock is the same as our competitors. We can pick and choose what styles to stock.

No

Have you got sufficient financial resources to fund any changes you would like to make?

No, we do trade profitably, but are not able to fund an expansion to a larger footprint store.

No

Do you have any cost advantages over your competitors?

No, rents are all pretty standard, you can save on rent but loose the foot traffic, so it is all relative.

No

Do you use superior technology in your business?

No

No

Is your business high volume?

No. We do sell a lot, but not as much as some of the larger retail stores. Our product is high quality, high margin and low volume in comparison

No

Can your scale up your volume if you need to?

Not really, orders are placed in advance, shop size is restrictive.

No

Intangible Strengths

Do you have or stock strong recognizable brands

Yes, though the brand space is becoming cluttered with more and more recognizable brands. Depleting the value of any one brand.

Yes

Your reputation - are you considered a market leader? or an expert in your filed?

No

No

Do you have good relationship with your customers? (Goodwill)

Yes, we have a good connection with our customers, our email list grows and many customers advise they were referred to us by their mates.
We get a lot of repeat customers.

Yes

Do you have strong relationships with your suppliers

Yes, though we are just another supplier to them. We are able to differentiate from our competitors. We have long term agreements in place with some suppliers to be their sole representative in this region.

Yes

Do you have a positive relationship with your employees

Yes, though we only have a few employees

No, our competitors also have good employee relations

Do you have any unique alliances with other businesses?

No, maybe our territory agreements with some suppliers.

No

Do you own any patents or proprietary technology?

No

No

Do you have a proven advertising process that works well?

Email news letter with specials and new stock, seems to work for retaining customers.
Most new customers were attracted to the shopping complex.

Yes

Do you have more experience in your field?

No

No

Are you managers highly experienced?

No

No

Do you have superior industry knowledge?

No, though we do have a good set of sales skills, particularly up selling and forming relationships. People feel good coming by and seeing us.

No

Are you involved with industry associations?

No

No

Is your business Innovative?

No, only in sales and relationship building.

No

Other Strengths

Current location

Current location in the center has high traffic, in an area with several other shops targeting the same market which draws people to the area

No

Our innovation is in our sales technique and point of sale displays

Yes

Summary

The key strengths for the business are

1. Unique brands protected by sole supply agreements
2. Successful relationship marketing, and
3. Innovative sales techniques

SWOT Analysis Examples: Weaknesses

Tangible Weaknesses

Is your plant and equipment old or outdated?

N/A

N/A

Is your product line too narrow?

Maybe, we only sell a few of brands of men clothing, we could stock more accessories, but we don’t want to confuse the customer about what line of business we are in.

Maybe

Have you got insufficient financial resources to fund any changes you would like to make?

Yes, we often think about opening a bigger store, but the rent would be an issue if we did not get immediate sales

Yes

Do you have a high overall unit cost relative to your competitors?

No

No

Do you use inferior technology in your business?

No

No

Do you have low volume and are restricted in your ability to scale up?

Yes, it may take a few weeks to replenish stock, less early in the season. But late in the season our suppliers are often out of stock of the quick moving products

No, all retailers are in the same situation

Intangible Weaknesses

Do you have a weak or unrecognizable brand?

Yes, maybe our shop name is not a public recognizable brand but our stock is. Some of our competitors are franchise and everyone knows them

Yes

Do you have a weak or unrecognizable image?

No, our shop frontage tends to draw people in

No

Do you have a poor or impersonal relationship with your customers?

No, we have great relationships with our customers

No

Do you have a poor relationship with your suppliers? 

No

No

Do you have a poor relationship with your employees?

No

No

Is your marketing failing to meet objectives?

No

No

Are your managers inexperienced?

Yes, I have less than 2 years in Retail

Yes

Do you have low R&D?

n/a

N/A

Do you lack industry knowledge?

Yes, maybe

Yes

Do you lack innovative skills?

No

No

Other Weaknesses

Specify

None

Summary

The key weaknesses for the business are

1. Small store size and inability to find an expansion, resulting in stocking a limited product range

2. Shop name is not well known

3. Manager has limited industry experience and industry knowledge

Can you expand your product range?

Yes, there are no contractual restrictions to us adding products to the store, store size is an issue

Yes

Can you diversify your business interests?

Maybe, if we had the funds

No

Can you expand into your customer's field?

No, the customer is the consumer

No

Can you expand into your supplier's field?

Yes, I don’t have the skills to establish an import business

Yes

Can you expand your customer base? (Geographically or through new products)

Maybe, through internet sales and mail order, maybe open another location

Yes

Do you have placid competitors?

Yes, there is not a lot of competitive advertising in our niche, and price is not so much of an issue to our customers

Yes

Do you have any export opportunities?

No, we import

No

Will the total market for your products grow?

Yes, but not significantly

No

Macro Opportunities

Are there any favorable changes to legislation pending

No

No

Will there be any changes to any import/export constraints that will be favorable for your business?

No, almost all clothing is imported there is little domestic production and a lack of ability for domestic producers to scale up. Any changes will impact all retail outlets equally.

No

Is the economic outlook favorable?  

No, however this may play favorably to our business as our target market might postpone larger expenses as a result a greater share of purse may be allocated to clothing – this is yet to be proven.

No

Are there any favorable cultural shifts that will benefit you?

Due to increases in housing prices our target customer has opted to postpone taking on longer term debit. Instead to remain in the “nest” for longer. This trend increases their customer life for our products.

Yes

Are there any changes in the use of technology that your business can utilize such as Ecommerce or Internet sales?

Use of internet to increase marketing and online sales.

Yes

Other Opportunities

Summary

The key opportunities for the business are

1. Backward integration in the supply chain to include importing directly
2. Increased geographic coverage
3. Leverage the growth of the internet to enhance business
4. Increase life of customer was 18 – 24 year old males, now 18 – 29 year old males

Will low cost imports impact your business?

No, our shop appeals to the middle income bracket who are not interested in low cost alternatives.
Though high quality low cost imports will increase our margin.  

No

Do consumers have a choice to use a substitute product?

Yes, many other products in the category

No

Are substitute product sales increasing?

No more than ours, the market share is reasonably consistent

No

Is your market in slow growth or in decline?

No, our market is relatively stable, maybe slight growth

No

Is the power of your customers or suppliers growing, can they dictate price?

No, maybe one supplier is trying to increase prices above CPI, but we can stop selling their stock and shift to another supplier of a similar quality product

No

Are the needs of your buyers changing?

Yes, every season fashion changes, however the need for medium quality products remains unchanged.  

Yes

Macro Threats

Will foreign exchange rate changes affect your imports or exports?

Yes, declining dollar will impact us, and all others in our industry, may also reduce sales if we pass price on to customer

Yes

Are there any changes in demographics that will impact your business

Maybe an increase in awareness about the behavior of governments of low cost producing nations may eventually impact our supply chain.

No

Is regulation in your industry increasing?

No

No

Other Threats 

Rent

Rent can go up reducing our margins

Yes

Location

Our rental contract allows the center to move our business location, if they believe another business will make them more profits.

Yes

Summary

The key threats for the business are

1. Changing fashion trends may shift consumer interest in our product range
2. Exchange rate variation may impact costs
3. Rents increasing above CPI putting pressure on our margins
4. Center owner shifting us within the center