Questions: Strengths• What is my business good at?• What is going right?• What gives me a unique edge over my competition?• Decide how you are going to build and enhance them. This can be the basis of your sales strategy.
Questions: Weaknesses• What is my business not so good at?• What are areas of improvement I can pursue?• What do my competitors say about my business when selling against me?• Figure out what you can do to remove these weaknesses or limit their impact.
Questions: Opportunities • What’s new in the industry? • What new feature or technology can grow my business? • Does my competitor have a weakness? • What new pool of customers can I reach? • Prioritize them and put together a plan to capitalize on them.
Questions: Threats• What’s slowing industry growth?• What policy/regulation changes affect us?• What competitor is closing in?• How are customer behaviors changing that might hurt my current business model?• Consider how much control you have over each. Decide which are worth addressing.
E-Commerce: Strengths• 24-7 operation• Global business from anywhere• Products reach to customers directly from producers at lower price than market value• Fast and effective• Comparison shopping
E-Commerce: Strengths• More affordable advertising• Low staff cost• Financial transaction through electronic fund transfer is fast• Can be started with very low investment
E-Commerce: Weaknesses• No direct customer-seller interaction• Some customers prefer buying by reaching personally to the market• Sometimes, transportation cost increases product cost• No. of potential customers who can buy through Internet is still not enough
E-Commerce: Opportunities• Internet users rapidly increasing• More are feeling comfortable buying through Internet exclusively• Big companies already in the ﬁeld blaze the path and bear the cost of developing a market
E-Commerce: Threats• Dishonest online businesses damage consumers’ conﬁdence and faith in the entire enterprise of Internet marketing
Example 1: Strengths• Cost advantages• Financial resources• Customer loyalty• Wide recognition for social responsibility
Example 1: Weaknesses• Need for experienced managers to help growth• Inadequate ﬁnancing capabilities• Weak market image
Example 1: Opportunities • Growing demand for quality • Enter new markets • Acquire ﬁrms with needed technology
Example 1: Threats• Changing buyer tastes• Likely entry of new competitors• Adverse government policies
Example 2: Strengths• Global reach of business• Low cost to maintain and enhance site; not restricted by footprint• Stock is recognized brands• Purchase price less than ofﬂine shops• Strong competition for warehousing and distribution keeps costs down
Example 2: Strengths• Easy to remain in touch and build relationships with customers (email, texting, social media)• Use existing distribution networks (USPS, FedEx, UPS)
Example 2: Weaknesses• No shopfront to accept returns• People need to ﬁnd our site; there is no other marketing• Lack of shop brand recognition• Hard to scale up to respond to peaks and troughs in demand
Example 2: Weaknesses• Limited ﬁnancial capital to fund website optimization• Larger or heavy products have high delivery cost, diminishing online price advantage• Low web development skills in-house; reliant on outsourcing
Example 2: Opportunities • Established trafﬁc and high number of repeat customers may enable increased sales through the addition of complimentary product lines • Increased use of online shopping among 18-35 suggests additional sales may come from stocking product for this age group
Example 2: Opportunities • Improve organic search ranking to reduce advertising costs
Example 2: Threats• Internet has no barriers to entry, which means a better ﬁnanced business or established retail business might seek to compete in this niche• Other online shops selling similar products• Buyer reluctance to shop online (diminishing)
Example 2: Threats• Quality issues from overseas suppliers damage reputation of brands we sell• Larger business with greater buying power may undercut our prices to gain online market share