Toy stores are engaged in a unique business because of the nature of their business and the product. They serve a unique section of the market because toys are a comfort product. However, depending on the strategies employed, there may be needed to perform a complete analysis of the business operations to make sure efficiency is sustained.
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SWOT analysis provides the easiest means of understanding both the internal and external factors which affect the operations of a business. The internal factors include the strengths and weaknesses while threats and opportunities make up the external environment (Phadermrod, Crowder, and Wills, 2019). In order to change the current situation where profits are minimal, there is need to come upward with a SWOT analysis and then determine what can be done.
Key words: SWOT analysis, threats, opportunities, weaknesses, strengths
Question one: Prepare a SWOT analysis for Wish You Wood toy store
- The loyal customers of the store who are a key pillar for the sales
- Unique and attractive wooden toys selling is a strong point.
- The strategic location of the store, they still stand a high chance of getting customer traffic each day
- Lack of an aggressive marketing team with multiple marketing options
- Lack of ability to compete in online selling
- Depending more on profit-based Marketing strategy rather than need based
- Time to make the next big move to maintain the current market share and control even more.
- Can invest more on product differentiation and get more traffic based on Amazon listing a same item for low price.
- The Internet can provide wide variety of marketing options and one of them is social media marketing. Social media marketing can become a cornerstone in the sales of the store.
- Without investing on customer feedback and provide the preferences of customers could become a big risk to the store. Competitors are likely to look for better ways of doing what you do better and eventually kicking you out of market (Wagenblatt, 2019).
- The store has not established other physical branches to reach out to customers who have not tapped into the digital way of shopping. Competitors are likely to strategize and capitalize on this option to corner the store.
Question two: Using the SWOT analysis, what general corporate strategy would you recommend for Wish You Wood? Should the store continue or change its current approach?
When you are in business and the strategy you put in place does not seem to be working properly, there is need to determine properly what exactly you can do differently. From the SWOT analysis above, it is clear that the store owners need a change of strategy. The current state of operations focuses majorly on making profits and ensuring that the toys move in the market without clearly determining whether customer needs are being met or what would be their preferences.
My key recommendation is that the store must change strategy to make sure they become customer oriented. Their greatest focus should be on developing a product that solves a need in the market and they will no longer need to invest much in partnering and similar strategies (Wagenblatt, 2019). Looking at the product marketing strategy adopted, the situation that resulted after listing with Amazon was expected. This is because of the competition out there and the fact that investors are willing to go the extra mile to make profit. If they pool out of Amazon partnership, they may lose their online market share because most customers will still buy from Amazon and they will choose the cheaper product unless the more expensive one has extra qualities which command the extra expense. In my opinion, therefore, they should invest in market research, feedback, and customer preferences.
From the SWOT analysis provided, the internal factors for the toy store have been identified by analysing strengths and weaknesses while the external factors have also been listed by looking into threats and opportunities. A corporate strategy which focuses the customer is required. Customer needs and preferences must be given priority for the store to revive its sales and get a sustainable way of doing things.
- Bateman, T., Snell, S., & Konopaske, R. (2019). Management: Leading & Collaborating in a Competitive World. New York: McGraw-Hill.
- Phadermrod, B., Crowder, R. M., & Wills, G. B. (2019). Importance-performance analysis based
- SWOT analysis. International Journal of Information Management, 44, 194-203.
- Wagenblatt, T. (2019). Go-to-Market/Product Marketing. In Software Product
- Management (pp. 315-347). Springer, Cham.