SecretSales.com Case Study: SWOT Analysis and Recommendations

This case study provides a SWOT analysis of SecretSales.com, a flash sales company, examining its strengths, weaknesses, opportunities, and threats across three business functions: Human Resources Management, Accounting and Finance, and Marketing. The analysis identifies the company's reliance on data-driven decision-making, successful partnerships, and advertising strategies as strengths, while highlighting the long time to profitability and high discount rates as weaknesses. Opportunities include leveraging membership growth, utilizing light entertainment channels, and capitalizing on the flash sales market. Threats include competition from high street retailers and potential customer trust issues. The study recommends that SecretSales.com adjust its discount strategy, improve profit timelines, diversify advertising methods, and carefully assess new product introductions to maintain customer trust and address competitive pressures. The case study concludes by suggesting that SecretSales.com should focus on market demand and competitor analysis to maximize opportunities for growth and profitability. The assignment is contributed by a student to be published on the website Desklib, a platform which provides all the necessary AI based study tools for students.

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Case study analysis
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Course:
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1. What is the SWOT analysis and how can it be useful for organizations? (20 marks)
SWOT analysis is an abbreviation for strengths, weaknesses, opportunities, and threats and
it is a structured method of planning used in organizations to estimate the four elements of a
business venture or project. It is a useful tool which helps the managers to identify and
understand the key issues and situations which are affecting the business. The managers are
able to analyze the environmental information and data for both external factors mostly the
threats and opportunities and internal factors which are the strengths and weaknesses
(Mapulanga, 2013, pg. 88). This knowledge helps to minimize the effects of business
weaknesses and maximize the strengths of the business. It helps the organization to predict
the changes in the market trends and help them make firm decisions. The managers are able
to take care of their strengths and identify the weaknesses and get an opportunity to converse
or deal with them. SWOT analysis helps to identify available opportunities and take
advantage of them to maximize profits. The potential threats are well-addressed by finding a
feasible solution to avoid losses. It also helps in the strategic planning process and in
matching the company’s resources and capabilities against the competitive business
environment surrounding its operations. The managers are able to analyze the past, present
and the future so that the information can be used to improve the organization’s future
productivity (Idahosa 2016, pg 98).
2. 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)
Human Resource
Management
Accounting and
Finance
Marketing
Strengths The company has
spent a lot to gather
data whereby it
analyses the
Partnering with Bose
and Dyson brands
has helped
SecretSales to drive
The company
focuses on
advertising the
products mostly on

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decisions of the
customers. This has
enhanced the ways
for choosing stock
and how they are
presented to the
customers.
the gadgets’ sales up
by 177pc. The three
venture capital funds
helped to raise
$6.3m which
boosted the
marketing of the
products.
TVs which
guarantees high
coverage.
Employees have
smartphones hence
able to respond to
ads quickly.
Weaknesses It has taken too long
to make profits.
Selling the excess
stock at a high
discount plays a role
in drawing down the
business.
Depending on TVs
only for
advertisements
limits the market
reach for the
business.
Opportunities The need to boost
membership
numbers gives an
opportunity to bring
in new investment.
This will increase
the number of
customers and
brands. Light
entertainment
channels provide a
good basis to fetch
customers and the
use of dual screening
is helpful as a
customer can watch
an ad and register
for the site
immediately.
The flash sales
sector is worth $3bn
in the UK alone
which provides a
good chance for
further development.
The business focuses
to start fundraising
in order to raise
capital.
The company has
rolled out a “click
and collect” service
which will enable
the customers to
pick up their items
any time they want.
The company is also
opting for texting the
customers to alert
them of new flash
sales come online.
Threats The evolution of the
high street and the
unresolved customer
service by the
multichannel
retailers have posed
a threat to
SecretSales. This has
been a threat to the
company.
Spending a lot to a
tune of 70 pc on TV
advertisement poses
a threat
Adding alternative
categories on the
already known
brands may
challenge the trust of
the customers.
3. Based on your SWOT analysis, which are the most important issues that you think
SecretSales.com need to address? Explain the reasons for your answer. (20 marks)

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SecretSales disposes off its surplus at a discount of around 30pc to 70pc and this is
considered too high. I recommend that the business considers offering a relatively lower
discount on the surplus sales since the costs of production remain the same and the high
discounts offered risks the business incurring losses. The business has taken almost a
decade before making profits and this has dragged it behind. The management team should
be keen to assess the progress of the business and identify any form of stagnation or loss-
making and come up with strategies to address them and avoid wasting time and grow the
business (De Miranda, 2016, pg 81). The marketing team should use various means of
advertising to ensure that there is flexibility and that they reach as many customers as
possible.
4. How do you think SecretSales.com should respond to the most important issues arising
from the SWOT analysis? Explain your recommendation. (10 marks)
As the business introduces new products in the market, there should be a thorough
investigation on the market demand and the effectiveness of the new products being
introduced thereof. The products should be designed in a way that they will serve better than
the previous ones and aim at improving the customer experience taking into consideration the
need to maintain the customer trust (Paton & Johnston, 2017, pg 90). The managers should be
aware of the existing competitors and identify their weaknesses so that they grab the
opportunity to fill the gap.

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References
Mapulanga, P., 2013. SWOT analysis in the planning of information services and systems in
university libraries: The case of the University of Malawi strategic plans. The Bottom
Line, 26(2), pp.70-84.
Paton, D. and Johnston, D., 2017. Disaster resilience: an integrated approach. Charles C
Thomas Publisher.
Thirlway, F., 2016. Everyday tactics in local moral worlds: E-cigarette practices in a
working-class area of the UK. Social Science & Medicine, 170, pp.106-113.
Robinson, J., 2016. What's the category got to do with it: investigation of retailer
performance at the category level in the UK market.
Idahosa, I., 2016. Creating Social Value in Societies. In Incorporating Business Models and
Strategies into Social Entrepreneurship (pp. 21-38). IGI Global.
De Miranda, A., 2016. The Economic Power of the Olympic Brand and the Legacy of
London 2012. Mega-event Cities: Urban Legacies of Global Sports Events, p.47.