Running head: SWOT ANALYSIS 1
SWOT,Analysis"Wish You Would Toy Store"
"WishYou Would Toy Store"
Thebusiness location near the local state park as well as its range ofwares makes it easy for the families having fun in the nearby parkhave easy access to the store. The partnership with Amazon is a greatstrength to the business as this opens the business to wider market.In the same line, by optimizing on online marketing as well as retailshop near the busy holiday park enables the business have a widermarket thereby eliminating risks of low sales associated withreliance on one market(Hill&Jones, 2013).
Themain weakness of the business is its heavy reliance on holidayvacationers which could limit the business sales. In the same line,the business has less physical retail shops in other geographiclocations. The store website traffic has also been a great hindrancein realizing effective customer service. Over reliance on other firmswebsites for marketing, advertising and selling items could adverselyaffect the business margins.
Inparticular, Amazon has similar products (Toy trains) just as thosesold by ‘Would Toy Store’ at cheaper prices. This benefits Amazonmore as ‘Would Toy Store’ customers select Amazons products whichare less cheap. This reliance on Amazon marketing website is harmfulto the business due to product and price similarities. Furthermore,changes in Amazon online marketing practices would affect the “WishYou Would Toy Store” business fortunes. In addition, it is alsoexpensive paying monthly fee and commission for each sale of businessproducts than managing own online marketing website.
Sellingtoys and other products online has the potential of expanding thebusiness returns and enlarging the business customer base. In thisrespect the business has more market and sales opportunities byselling or advertising its wares online through emails, Facebook andother social sites. The partnership between "WishYou Would Toy Store"and Amazon is a great opportunity as this exposes the business tounlimited market sales and advertisement opportunities due to Amazonpopularity.
Although"Wish You Would Toy Store" partnership with Amazon is agreat idea, this partnership leads to unhealthy competition betweenAmazon and ‘Would Toy Store’ products. However, similar productsthe low prices offered by Amazons makes its products more competitivethan those of Would Wish Store. In this way, the store has a lowmarket bargaining power compared to Amazon. Another, threat is that,online marketing has more competition threats than physical marketretail outlets. As such, Would Wish Toys needs to optimize theirsales thorough more physical and other online sites (Hill&Jones, 2013).
Thestore needs to withdraw all the products that are similar to those ofAmazon in the online market and rethink which products will be lefton Amazons site. Similarly, the "Wish You Would Toy Store”management needs to look for other firms with effective onlinemarketing sites that do not offer similar products to those of the‘Would Wish Store.’ Alternatively, "Wish You Would ToyStore" should develop their own online website in collaborationwith Amazon or other large online marketers. In this case, thesepartners would assist the store in the management and as a referralsite for customers by the firms rather than placing the "WishYou Would Toy Store” products alongside the partnering firms’websites.
Additionally,the store should consider using the less expensive online marketingplatforms like Facebook, Twitter, Linked in or other social sitesthat have wide coverage. Lastly, the management of the store shouldconsider increasing their physical retail shops network in differentgeographical regions to have an added leverage in marketing andincreasing the business returns(Hill&Jones, 2013).
Hill,C., & Jones, G. R. (2013). Strategicmanagement: An integrated approach(10th Ed.). Independence, KY: Cengage Publishers.