This paper will discuss the Strengths, Weaknesses, Opportunities, Treats and Trends (SWOTT) analysis for the small business that I would like to start, a small dogs Pet Shop. The Pet Shop will sell and deliver small breed dogs, and will also sell pet food, supplies and personalized gift baskets for birthdays and holiday occasions. The Pet shop will provide its customers with small dog's spa, canine obedience training and routine vaccinations. This pet shop will be open 24 hours a day, seven days a week. The SWOTT analysis is a tool that one can use before launching a venture as well as throughout the life of a company. It will help the management focus on all the issues that affect the company internally or externally. (Entrepreneur, 2008)Strengths, Weaknesses, Opportunities, Threats and TrendsTechnologicalStrength. Technology in the Pet shop business is very important because it will provide the organization with better methods to control customer's accounts and inventory.
English: An illustration of competitive advantage
Weakness of attitude becomes weakness of character
GeoTech Global MiningThe company technological structure will be formed by computers, telecommunication devices, and other office devices such as fax, and printer. The computer system, will organize the data in a traditional file environment so that information can be access and retrieve instantly. A scheduling client database program will be utilized to maintain appointments and client information in an organized manner. The telecommunication devices will consist of cellular, 2-way radios and telephones. This will allow for immediate communication with dog walkers and will offer instant communication assistance if any problems should arise.
Weakness. Dependence on technology can be a problem, if the system or systems fails operation of the business can come to a halt. In order to minimize this weakness a manual back up system needs to be available in order to continue operations while the main system is down.
Opportunities. As new technologies evolve keeping track of appointments, customer records and the overall efficiency of the business operation will improve.
Threats. Security threats pose a serious problem for any organization and specially ours that use current technology as the internet to do business. Reliance in technology could expose the organization to the following threats:â¢Private information could be received and withheldâ¢Private e-mails could be read.
â¢Private records could be obtained and released.
â¢Private Usernames and passwords could be acquired by the unauthorized userTrends. The technology trend for this type of business is to offer merchandize and services through the internet. This trend is geared to the customers who prefer doing business over the internet. Following this trend will increase the business competitive advantage.
GlobalStrengths. One of the strengths that the company has is the personalized services that it offers to its customers. This strength will give the company a competitive advantage once the company grows and penetrate the global market.
Weaknesses. There are many weaknesses that the company will face or confront in the global market such as lack of cultural understanding or lack of local legal systems knowledge and so forth. In order to minimize this weakness an organization needs to conduct an environmental analysis to understand the political risks, legal environment, economics, and cultural analysis of the country selected for expansion.
Opportunities. The overseas Pet market is wide open to new comers; therefore the organization should seriously analyze the opportunity that expansion offers. The overseas market offers the opportunity to expand sales, acquire resources, and minimize competitive riskThreats. All the main forms of political risk such as the danger of political violence, protectionism, geopolitical tensions and government instability need to be taken into consideration in order to expand operations. Environmental forces overseas pose a threat for the organization's marketing and operational plans, foreign tariffs, currency fluctuations, government, and language barriers need to be taken into consideration also. Strengthening community partnerships and developing local resources is imperative for the company to be successful in the global market.
Trends. Many companies are joining the global market in order to seek better opportunities for growth and expansion.
Legal and regulatoryStrengths. There is not a strong regulatory climate for the canine pet shop business. The organization will form a partnership with a few associations that offer guidance, standards, training and certifications for the business in the pet industry. All the company employees are credited pet service professionals.
Weaknesses. While the company has relatively safe products and services, there is no legal team to protect the organization from lawsuits and unlawful claims.
Opportunities. The company will seek every opportunity to continue training their staff to meet the legal credentials required for the business. The company will also seek to strengthen its legal standing be seeking advice from local legal firms.
Threats. In any type of business there is always the treat of a lawsuits or unlawful claims.
Trends. Even though the Pet shop market is not strongly regulated at this time, the trend is heading towards increased regulations by the government due to new safety and health requirements.
EnvironmentalStrengths. The organization is constantly assessing the business environment in order to make changes to the business strategies accordingly and improve business performance and profitability.
Weaknesses. Even though the internal business environment is typically more subject to the firm's influence and control, the external business environment is not. Therefore, the organization is more reactive than proactive when dealing with the external environment.
Opportunities. The external environmental can bring new opportunities for expansion and development which in turn translate to higher profits due to financial growth.
Threats. The organization needs to be ready to face environmental threats such as new comers that enter the market, government changes in business and health regulations, and changes in the market supply and demand. The downturns in the economy can also affect the business directly as customers will hesitate to use their resources for anything other than their present needs. The organization will also face legal issues such as lawsuits from customers or unscrupulous individuals.
Trends. Customers are using more the internet to acquire supplies and services for their pets and they are increasingly treating their pets as part of the family, therefore they want more special services for their dogs, such as individual clothing items, birthday or holiday supplies and grooming/spa services.
LeadershipStrengths. The organization has a very strong chain of command whose leaders are competent and knowledgeable.
Weaknesses. At this time the organization does not seem to have any weaknesses in the leadership department.
Opportunities. The company takes every opportunity to develop and train their leaders so that they can be ready for increase responsibility in the future.
Threats. Competition stealing the organization's leaders, is a major threat for the organization. In order to minimize this threat the organization will offer an outstanding benefit package to its employees.
Trends. Current trends show that there is a shortage of leaders in most of the companies across the market spectrum..
StrategyStrengths. The company provides outstanding customer service and customer retention programs. In addition, the company has a very strong competitive advantage as it offers unique services to the target market that the competition does not offer. Another strength is the organization's well trained and motivated workforce. In addition the organization will develop strong ties with the local community.
Weaknesses. The uncertain of the competition's market strategies and how these strategies will affect the company's own strategies in the long run is a major concern.
Opportunities. The organization needs to be aware of environmental changes to capitalize on any market opportunity afforded.
Threats. The three major threats that the organization is facing are environmental changes, competitors stealing customers from the company and increase regulatory measures.
Trends. Current trends in the market are customers opting to buy small breaded dogs instead of big dogs. This trend is favorable to the company as the company only sells small breaded dogs.
In conclusion, this SWOTT analysis will help the organization to understand its competitive and financial advantages, the organization needs to analyze the current market trends as well as the competition strategies in order be competitive in the pet market. The organization also needs to look at its weaknesses in order to avoid them or minimize them. Opportunities such as developing new services for the target market, expanding operations and forming alliances need to be part of the business strategy. In addition the organization needs to remain open minded about the customers needs, and continue to strengthen its partnership with the community. These recommendations will allow the organization to remain on the cutting edge of the competition and become the number one canine pet shop in the country. (Vebsite, 2008)ReferencesEntrepreneur (2008). Leadership: SWOTT your way to success. Retrieved on September 29, 2008From http://www.entrepreneur.com/management/leadership/leadershipcolumnistpattyvogan/article83052.htmlVebsite (2008). SWOTT analysis. Retrieved on September 29, 2008 from the website,http://vebsite.com/swot-analysis.php