SWOT Analysis for SecretSales.com : Assignment
Added on 2020-04-15
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Finance
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SWOT ANALYSIS FOR SECRETSALES.COM 1SWOT Analysis for SecretSales.comName:Course:Tutor:College:Date:
SWOT ANALYSIS FOR SECRETSALES.COM 2Question 1: What is a SWOT analysis and its usefulness to the organization?SWOT analysis is a useful tool used to assess the strengths and the weaknesses of an organization and identify the potential opportunities and the threats that may be faced by an organization. The tool enables the managers to come up with solid and valid strategic plans for the growth of the business. It is essential in making valid decisions for short-term and long-term plans. Knowing the company strengths helps the managers to concentrate more on them and utilize them maximally through determining the internal and external factors that may influence the performance of a company (Kangas et al 2016, p. 84). It helps to use plan and use the resources efficiently and improve the company operations. Identifying the weaknesses also helpsthe organization to avoid mistakes such as offering inferior products as opposed to the competitors. The company is able to identify the critical areas which need much attention for improvement.Conduct a SWOT analysis of SecretSales.com, based on the information in the case study. Structure your SWOT according to the three business functions: Human Resources Management, Accounting and Finance, and Marketing. Present your analysis in the form of a SWOT table (40 marks)SecretSales.com is a well-established company dealing with technology-provision. Some of the strengths include being the pioneer in the UK technology market which earns it the customers’ interests and trust. The great efforts made to establish the company have born fruits as the revenues have risen 20pc annually which saw the company attain a gross of £47m in 2015. Partnering with brands such as Dyson is a great move which has increased the sales volume of the gadgets. Some weaknesses include being a low-margin business which means if its sales volume are low, then it incurs great loses. The introduction of new products in the market that
SWOT ANALYSIS FOR SECRETSALES.COM 3the customers are not used to may foster loses as the customers have not gained the trust in those new products. The money spend on advertising is too much accounting to 70% of the company spending and this may pose a financial imbalance for the company. Having to offer too many discounts to the customers in order to win more of them and retain them and also maintain the integrity of the brand is a challenge to the financial position of the company. The opportunities include investing in the marketing of the products using the capital funds raised as most of the products are not well-known in the market. The business is focusing on informing the customers on any new arrivals of flash sales by texting them. The threats include; most of the high street brands have developed their own websites which they use to access the online audience. This poses a threat to the SecretSales.com Company as it is its main business hence fostering a loss ofcustomers. The outstanding services offered to the customers by the multichannel retailers also poses a threat to the company.StrengthsWeaknessesOpportunitiesThreats Human Resources Management,Well-developed repeat custom which yields about 80% company revenue.-offering many discountsRolling out the “click and collect” service to increase the customer-convenience.Building up repeat customers-evolution of thehigh street-good customer service by the multichannel retailersAccounting and FinanceOverspending onTV advertisementThe value of the flash sales is worth £3bn in the UK which presents a great potential for growth.MarketingThe use of tongue-in-cheek advertisingTexting customers when new flash sales come online.
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