SWOT stands for:
The SWOT Analysis is the process you undertake once you have the results of your market research. It lets you know what the potential strengths, weaknesses, opportunitiesand threats to your business are.
Strengths & weaknesses are usually things within your business over which you have some control e.g. staffing, pricing etc.
Opportunities & Threats are usually things outside your business over which you have no control e.g. market changes, changes in legislation etc.
SWOT Analysis for ‘Pot Luck’
When Kate completed her research she then did a SWOT analysis
She used her SWOT analysis to discover potential problems they might have to deal with in their business and the things which will be of benefit to them if dealt with correctly.
Strengths …..Pot Luck’s products are very popular as they are hand painted and are very unique. They are not perishable, therefore, they have a long shelf life and will not go out of date. Seasonal bowls for Christmas or Easter can be stencilled and painted in advance by Jane thus reducing delivery times to customers.
Weaknesses……Some of Pot Luck’s bowls are hand painted individual designs which are time consuming to paint. However, as a result of market research, non personalised bowls are also offered to customers. Bowls with acrylic paint can be used for decorative purposes only but bowls with glazed finishes can be used for foodstuffs.
Opportunities…..Pot Luck availed of a local potter to give their business any cast-offs which were surplus to his requirements as well as purchasing plain ceramic bowls. A friend of Kate’s mother has a local craft shop where their products can be displayed and sold. This opportunity provided the team with experience of selling somewhere other than school and it gave them a chance to learn about trading with the general public.
Threats…..Pot Luck has competition from other shops in the area where lighter, less expensive mass produced coloured bowls are on sale taking some of their market share, however, the group examine their products constantly for quality and regularly review their designs as sale trends dictate. They managed to find a niche in the market.
Perform A SWOT Analysis
Now that you understand how to do a SWOT analysis, try doing one for your mini-company. Download PDF document