Swot Analysis for Sift Cupcake and Dessert Bar

SWOT Analysis for Sift Cupcake and Dessert Bar

Sift Cupcake and Dessert Bar is a unique shop that specializes in creative cupcakes and desserts. It began when Andrea Ballus had a vision for a shop that offered unique, creative cupcakes for her wedding. She noticed there was a void in this market in her area. Eventually Andrea decided to open up her own shop. The SWOT analysis is used to evaluate the progress, success, and faults of the company. The SWOT analysis is a strategic planning tool that evaluates the strengths, weaknesses, opportunities, and threats of an organization. It is used to help identify internal and external areas that need improvement and internal and external areas that prove to be successful.

Strengths:

Sift Cupcake and Dessert Bar was able to effectively use market research and their own surveys to identify their target market. By using the information gathered by the Bureau of Labor Statistics, Ballus was able determine the age group that spent the most on bakery products similar to hers was between the ages of 35 and 54. It was also determined that nearly 80% of Sift's customers were between 25 and 54.

Now that Sift's had an idea of the age range for their target market they wanted to take it one step further. More information was gathered to further define a target market. Most of Sift's customers were upper middle to upper class, and could afford to spend the money on the specialized product. Another survey provided by Sift's showed that most customers either had no children or were parents of young children. With this information Ballus determined there was a niche for this market. With a clear and defined target market Ballus was ready take that step to become a small business owner.

Weaknesses:

By being a new small business Sift's did not have the line of credit that more established businesses possess. The company was started mostly with the use of personal and family money. This can be risky because if the investment is not successful that money is gone with nothing to show for it. Although the company was profitable in its first year, Sift's would need more operating income to expand to other locations.

Sift's also had some staffing issues. The company originally began Andrea and her husband Jeff. Ballus also hired her best friend Corey to be the first manager. By expanding and opening up new stores there was a need for more employees. Once again Sift's found itself coming up short on cash flow. Sift's could pay the staff slightly above minimum wage, but could not offer competitive salary for managers. Andrea could not do it all and found it difficult to hire experienced managers. This, along with not being able to provide competitive salary made for some very tough staffing issues.

Opportunities:

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