SWOT Analysis

SWOT analysis examines a mixture of internal and external issues. Strengths and
weaknesses mainly relate to internal issues, while opportunities and threats arise from
external factors, e.g. customers, competitors, market trends, market environment.
a) INTERNAL ISSUES: Strengths and Weaknesses
Marketing
Product / Service
People
Pricing
Promotion
Distribution/distributors
Marketing
information/intelligence
Branding and positioning
People
Sales / After-sales
Wages / benefits
Motivation
Skills / training/development
Methods/conditions/staff
turnover
Distributors
Processing / Customer Service

Product Development & Operations

Sales
Processing orders/transactions
Production
Marketing
R&D
Management
Structures
Philosophies
Company Resources
Finance (Budgets)
People
Communications
Time
Marketing Information
IT Systems

b) EXTERNAL ISSUES: Threats and Opportunities

Social / cultural
Regulatory / legal/political
Technological
Economic conditions
Market / Customer needs

Competition
Intensity of rivalry
Bargaining power of buyers,
suppliers
Pressure from substitutions
Threat of entry

distributors

and

Source: Dibb, S. & Simkin, L. (2001) The Marketing Casebook: Cases and Concepts. London:
Thomson Learning

BFC SWOT Analysis

STRENGTHS

WEAKNESSES

Hand-made furniture is unique

Demand for product is evident
Mr Vines expertise in the field
Experienced craftsmen in workshop
Location of store
Business is profitable, if properly managed

Commission system is problematic

Lack of incentive for employees
Falling sales
Vines unaware of market changes
Inadequate organisational structure
Demand exceeds supply
Current product range is seasonal
Inadequate leadership of staff
Overlapping staff roles
Poor communication at all levels
Lack of regular meetings
Unofficial supervisor
No middle manager
Job descriptions are vague
High staff turnover
New consumers continuously sought and
targeted

OPPORTUNITIES

THREATS

Target market is different to local

competitors (discount store)
Expansion of business and potential for
further growth
Stock new expensive range of goods
Potential of more customers
Extend contracts of craftsmen in workshop
to full-time status so as to increase
production
Create new range of furniture and expand
good quality range
Offer staff training
Group bonus scheme (as incentive)
Revise marketing strategies to promote
awareness of store
Conduct market research

Competition
Further resignations
Use of time and money to train new staff
while there is high staff turnover
Low staff morale could further impact
productivity
Repeat incidents of double-ordering
Loss of customers due to lack of stock
Continued falling sales
Possibility of bankruptcy