Swot Analysis

SWOT ANALYSIS

Prior to going into the details of the proposal, a SWOT analysis is needed to ensure that the company develops an effective business plan or strategy (CITE). A SWOT analysis is relatively simple and direct tool of assessing what the company is currently capable of doing well (strengths) and what they are not doing well (weaknesses), and what positive and negative environmental circumstances presents the firm (opportunities and threats). Either way, the SWOT analysis allows the company to use the findings of the analysis to develop an effective strategy to gain competitive advantage in favor of the firm. The following is a brief analysis of Angel's strengths, weaknesses, opportunities and threats.

Strengths

- Good quality products and services

- Wide variety of choices for swimwear

- Accommodates customized swimwear with matching accessories

- Committed employees

Weaknesses

- No online presence or sales

- Weak brand presence even within its local community

- Poor marketing skills

- Limited distribution

Opportunities

- ¬Market growth (especially in emerging markets)

- Opening of foreign markets through global online expansion

Threats

- Saturated online market

- Fierce competition (cheap products from China)

Online Business Expansion

This section will provide a more detailed analysis of the online business expansion of Angel Swimwear and Accessories.

Viability

Like any business endeavor be it for a new or existing business, such endeavor must be thoroughly studied in order to ensure its success. The following is a brief assessment of the viability of Angel's online business expansion.

ADVANTAGES OF ONLINE BUSINESS EXPANSION

An online business expansion may well provide Angel Swimwear and Accessories many advantages that the traditional business operations cannot give. These advantages are outlined below:

1. Ease and convenience for the company and the customer

One of the many advantages of doing business online is the ease and convenience that it brings not only to the company but to the customer as well. The customer has the option to transact the business at the comfort of his/her home, with only come clicks in the computer. The business owner, on the other hand, can easily check on his business, specifically its sales and inventory, in real time, at whatever time of day or wherever he currently is.

2. 24/7 business operations

An online business expansion will allow Angel Swimwear and Accessories to be open for business 24 hours a day, 7 days a week with virtually no labor costs associated with it. Such business operations will eliminate any time zone barriers that may exist.

3. Global reach

As the internet is widely open to the public, the company will be able to serve any location around the world so long as that location has an internet connection. This means that even if the company is based in Florida, the company will still be able to serve customers coming all the way from Asia or Europe even without having physical presence in any of these locations.

4. Minimized overhead costs

As stated earlier, the 24/7 business operations of Angel Swimwear and Accessories does not incur significant labor costs. In addition to that, the company also benefits from minimized overhead costs due to the fact that the website in itself becomes the portal for a business transaction, with no physical store required nor any person to facilitate the transaction since the system already makes this possible and, eliminating a wide range of expenses in operating the business (i.e., rent, labor, etc.).

5. Equal playing level field for all

As the internet becomes an open market to all, each business is given the chance to compete with one another head-on. This means that despite being a new entrant in the online marketplace, the company still has an equal opportunity of success.

DISADVANTAGES OF ONLINE BUSINESS EXPANSION

While an online business expansion provides the company advantages, to provide a more comprehensive view of the viability of the online expansion, it is also important to study the different advantages that the online business expansion brings. The following are the different disadvantages and how they can be addressed:

1. Highly dependent on technology (requires internet connection, fast servers, secured website platform)

Because technically all of the business transactions are done in the online system, this calls for a high dependence on technology, especially on a stable internet connection, fast servers and a secured website platform. The business operations will not be possible without such technology. For this reason, to ensure that the company does not lose money in case any of these fail, it must have a backup plan to buffer any failure.

2. Increased security risks for customers

While online businesses continue to thrive and many consumers do transact online, there are still plenty of risks associated with online transactions. There have been many cases of fraud or scam reported from online transactions. Compared to the traditional physical transaction, an online transaction significantly increases the security risks of customers. It is for this reason that it might take some time and effort to gain credibility as an online business. Thus, it is highly recommended that the company use a secure platform for their payment processing. Otherwise, the company will lose