SWOT analysis is a process used in evaluating the strengths, weaknesses, opportunities and threats that occur in any business entity (Phla & Richter, 2009). It comprises of specific objectives of the business venture and identifies both the internal and external factors that are favorable and unfavorable to achieve the set targets and objectives of any given firm (Phla & Richter, 2009).
Variety kind of Safe guard Soap. (bathing, Showering, washing etc soaps)
Lack of means to access remote areas.
New market place & identification of a market gap.
High competition in the market I.e.
Delta soap, Medisoft, Pz cussons, Lifebuoy, dettol.
We will have to come up with a strategy through which we will penetrate in the market by either selling at a low price than the competitors who are already established.
Low start-up costs thus reducing profit margin of products
New products for consumers
Changes in the prices in the market.
Expensive at the in the short run due to purchase of the equipment needed and feed for upkeep but economical in the long run
Effective and efficiency in production process.
High costs involved.
It will grab the un explored niches in the City and its surroundings and later expand itself to other towns.
The strategy the firm will use to enter this location is a problem i.e. whether skimming or penetration.
Competition from others
Established customer base
Though we have an established client base i.e. family, schools, hotels etc it
Will be tasking to attract new clients and gain their trust in the market.
Competition from already established firms.
Curiosity of consumers as they venture for new products in the market.
We are a new upcoming venture in the Soap industry; we need to come up with tactics to establish ourselves in a market with organizations that have already built a brand name for themselves.
Good image encourage more partnership.
Bad image may ruin the firm’s image
With the introduction of new productions in the Nigerian market, consumers normally prefer to use new products in the market. This will give the firm an upper hand in setting up their base within the shortest time possible. With the usage of modern technology in the production market of Nigeria, the firm will be able to produce soap products of high quality that will fully meet the needs of the customers in the market. The firm will also lay strategies that will enable them to penetrate in the new market by either selling their products at either low price to attract more customers compared to other prices of the competitors in the market (Fine, 2009). The application of modern tactics in the marketing like sales promotion, where they sell their products at attractive prices to encourage the consumers to purchase more and participating in random and regular promotions activities throughout the city and its outskirts. The production of good and quality products will create a good image of the firm that will create a good rapport with the customers in the market. With production of quality products, the firm will be able to export some of its soap products that will earn the country foreign exchange in the long run. The exchange will have a positive impact on the growth of the Nigerian economy as most of the employee’s living standards will be greatly improved.
Some of the market niches in this city have not yet been exploited and there is a high demand for these products. Most of the areas in the city and the outskirts have not yet been fully reached. The firm will carry door-to-door advertisement that will create more awareness of the new product (soaps) in the market (Bohm, 2009). Since it’s still an emerging industry, the opportunities increases our market share as the consumers are optimistic of the new types of soaps in our firm. The firm will set billboards on strategic location to clearly highlight their new products in the entire Nigerian market. With the use of current world of technology we have a big opportunity to use this technology to market ourselves through websites and increase our market share as we widen over to other cities and towns in Nigeria (Dealtry, 1992). With the establishment of a new firm, more funds will inject into the economy that will eventually lead to the growth in the Gross Domestic Product (GDP) of Nigeria. The firm will also create more job opportunities in the markets as more people will be employed resulting to improvement of their living standards.
Threats & weakness
The starting capital is a big threat to the establishment of the new firm since the business needs large sum of capital to construct the firm’s premises structure and purchasing the equipment and machinery to be used in soap manufacturing process (Manja, 2007). The firm needs more money to carry out the advertisement and promotion process as the process will consume much of the firm’s capital.
Competition from other soap manufacturing firms like O2 Nigeria, B. Galaxy, Harrowmatic Pharmacy industry and others form a major threat to the success of the firm as they have already established their products in the market and have set specific markets as they have won the customer relation thus we should make sure we attain a competitive advantage once we have established ourselves in the market (Wied & Ebers, 2007) . With the presence of other types of soaps like Delta soap, Medisoft, Pz cussons, Lifebuoy, dettol are key competitors that threaten the firm’s products. Provision of a relatively high income to the new employees of the firm will attract qualified personnel’s to the firm; this will eventually lead to effectiveness in the production process.
With the price of the soaps being determined by the market movement, the already established firms will set prices that best suit their demands. With the variance of prices depending on the customers demand and the wholesalers, customers have a chance to bargain and opt for the soap being sold at lower price (Ferrell & Hartline, 2008). This will eventually affect the returns realized as the firm will gain less profit as it struggles to adapt fully to the market.
Inaccessibility of some areas
There are certain remote areas that cannot be reached due to the distance and the level of security therein. Such areas require thorough consultation before making a decision on whether to make a move or not. The infrastructure is also a factor that influences accessibility of some regions (Wylie, 2009).
Soap (P& G) firm will make advances to members of the target market through the phone and making of regular visits to their premises. Sales strategies aim at increasing the turnover of the firm’s output, which will have a direct impact of increasing the revenue and profit margin.
We will also request the perspective customers of our competitors to provide us with information about our competitors and also to notify their neighbors and associates before we approach those. This will result in trustworthiness and pre-qualify loyal customers who are in need of our products based on their familiarity with the products. We shall inform them about our present products and ask them for more suggestions regarding what is required of us in order to win them over. To make our product unique, the recommendation requested by customers during market research regarding improvement of the product to satisfy their needs will be implemented. Finally we will form an individualized sales plan with their detailed needs about the products, volumes of sale, regularity, price and other services like on time delivery to win their trust fully (Brennan, 2009).
The SWOT forms a brief analysis if all the new firms need to put in place and observe for the entire life of its existence in the market (Wylie, 2009). All the necessary requirements for the setting up of Safe guard soap are highlighted and taken care of fully using the SWOT analysis diagram. The firm through the set strategies will be able to develop and suit properly in the Nigerian market.
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