Retail business owners can easily learn many things about their marketplace with business research. SWOT analysis for industry analysis is an ideal way to find out the basics about the marketplace, customers and overall situation of the existing competitors. SWOT is an acronym that stands for strengths, weaknesses, opportunities and threats to a business venture. These four are inseparable factors for a retail business. Amongst these factors, strengths and weaknesses are internal factors, while opportunities and threats are the external factors that affect your retail business. Careful analysis of these factors helps you come to term with reality and actual behavior of the customers in your target market.
SWOT Analysis for Retail Business Ventures
Any successful business venture including retail needs to capitalize on their strengths, improvise on their weaknesses, advance on their opportunities and find solutions for the threats. SWOT analysis is useful for effective competitor evaluation, strategic planning, product development, business expansion and overall marketing. This type of industry analysis provides you insight about the basic aspects of a business that include product, process, customer, finance, distribution and administration. When a retail owner or manager hires a business research firm, they create careful reports about all these factors affecting your business in both positive and negative ways.
How to Use SWOT Analysis
First, you need to determine the purpose of your analysis. Once you figure out the aim of the SWOT analysis project, create lists of all the possible strengths, weaknesses, opportunities and strengths for your business venture.
Strengths: strengths of your retail business are the resource capacities that you can use for competitive advantage. Consider all the positive aspects about your store, products and employees and create a list accordingly.
Weaknesses: all the areas that require improvement and more attention are your weaknesses. These areas could be the pricing, employee motivation and weaknesses in product development.
Opportunities: Uncover all the areas that you neglected before for being unimportant. Seek out new business opportunities and areas that you can use you build reputation. Think of innovative ways to attract more customers.
Threats: Similar to weaknesses, threats could be both inside and outside of your business environment. Find out threats in the departments like finance, administration, distribution, etc.
Since you are not sure about most of these aspects, create questionnaires that provide you all the possible answers of these basic questions. Keep the questionnaire, easy, realistic, practical and logical. Avoid including highly technical terminology, hence it is better judging the target employees and customers before creating questionnaires.
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