Strengths Weaknesses Of SWOT Analysis

A SWOT analysis is a strategy that is used to perform an environmental scan in the internal environment, in order to identify possible strengths and weaknesses. And to investigate, possible opportunities and threats in the external business environment. Using a SWOT analysis can help to asses a changing environment and how to respond proactively.

Strengths Weaknesses

Affordable trendy fashion garments.

On par with international trends with regards to clothing garments.

Well known business and well established in malls.

Customer loyalty brand.

Offers sales, promotions and discounts regularly to customers.

Retails sales keep growing each year, which increase profit amounts. Selected demographic to which target market the business

This is useful as it helps understand both the strength of the business’s current competitive position and the strength of the position a business may want to move into. The Five Force Model assumes there are five important forces that determine competitive power in a business situation. These forces are ; supplier power , buyer power , competitive rivalry , threat of substitution , threat of new entry.

Supplier power

This is driven by the number of suppliers, the uniqueness of their product or service and their strength and control. The fewer supplier choices you have and the more the business needs the supplier, the more powerful the supplier is. In order to be successful, the supplier has to provide good quality products as well as to deliver the product on time at reasonable prices. Miladys needs ensure they have good relationships with their suppliers. The business needs to have the ability to obtain new stock at reasonable prices in a short space of time. The suppliers need to deliver clothing garments of the highest quality to please customer satisfaction. In order to function at an optimal level, Miladys need to have multiple suppliers at disposal, in case of one supplier not having stock, the business can look to another supplier to obtain their

If the buyers are not respected and offered good value for their money, they may choose to support a different business and thus this may have a detrimental effect on customer loyalty. The customers at Miladys are influenced by the types of fashion garments that is being offered, which suit their taste and style. Most buyers are price cautious which is why they choose Miladys as the products are affordable to most income brackets. Buyers associate Miladys as a brand of mature woman fashion, a specific target market. This results in the buyers being comfortable with Miladys specific style and clothing, resulting in them returning to buy more