Hal’s Woodworking SWOT Analysis
| – | Strengths | – | Weaknesses |
| • | Family-owned business | • | Local presence |
| • | Local community presence | • | Limited Internet website |
| • | Service-oriented tradition. | • | Small online selection |
| • | Established tradition | • | No internet business knowledge |
| • | Has an established customer base. | • | Limited staff |
| • | Management is committed to the company. | • | Limited budget |
| • | Qualified and knowledgeable staff | • | Don’t have a detailed plan yet. |
| – | – | • | We would be a small player. |
| • | SWOT | ||
| – | Opportunities | – | Threats |
| • | Increased internet exposure | • | Increased competition from brick and mortar stores like Home Depot. |
| • | Increased sales | • | Increased competition from online retailers such as Amazon. |
| • | Larger customer base | • | Competition can easily enter the market. |
| • | Profit margins will be good. | • | Vulnerable to reactive attacks by major competitors. |
| • | Could seek better supplier deals. | • | Price competition |
| • | Opportunity to expand | • | Risk of losing family-owned reputation |
Introduction
This SWOT (strengths, weaknesses, opportunities, threats) analysis evaluates the desirability of expanding Hal’s Woodworking website beyond its current state. The current website includes information about the company and some store information, such as locations and hours. Management is considering expanding the web site to include online shopping.
Through the analysis of the strengths, weaknesses, opportunities, and threats I have determined that expanding Hal’s Woodworking is a good idea since it has many strengths that will overcome its weaknesses. Expanding will be necessary for the company to stay in business for the long term. But Hal’s Woodworking also needs to focus on their weaknesses and threats to avoid being run out of business by large chain retailers such as Home Depot and Amazon.
Strengths
Hal’s Woodworking has various strengths that could make the expansion of selling products on a website successful.
Hal’s Woodworking has a strong local community presence that through the expansion of the website will allow the company to reach customers who they can’t reach now by moving from local to worldwide. The company also has a strong reputation of being providing high qualified service through knowledgeable staff. That strength could be translated to the website if the inventory that the company offers on the website is tailored by the staff that knows the product. In doing that the customer could either buy it from the online store or go to the store with the knowledge of what they want.
That could lead to a no-hassle experience for their valued customers and new customers.
Weaknesses
Hal’s Woodworking has various weaknesses that could hinder the success of expanding to shopping on their website. The store is local and will only showcase a limited selection of its products online. Being a local presence the price points for the products will not compete with bigger websites like Amazon and Home Depot. But if the company wants to compete, lower prices will be needed which will cause a decline in profit margins for the products offered by the company.
With no solid plan in place, Hal’s Woodworking needs some expert advice before entering the e-commerce world.
Opportunities
Hal’s Woodworking will have various opportunities that could help the company succeed in expanding its website. Currently, the company offers classes and workshops for the homeowner and hobbyists each month and regularly schedules seminars that are underwritten and taught by manufacturers. If the company could offer those videos on the website it could add even more value to high-end specialty tools currently being considered for the website.
In expanding to selling online it will lead to increased exposure and the increased web presence which could lead to increased sales that could help the company to eventually expand.
Threats
Hal’s Woodworking will have various threats that could threaten the company expansion of its website. In order to reach their valued customers, it will be a threat for them to compete with big-time companies like Amazon and Home Depot since these big companies already promote products at low prices. This will leave Hal’s woodworking susceptible to price changes and could leave the company with low-profit margins if Hal’s decides to compete on price.
Lastly, Hal’s Woodworking risks losing their family-owned reputation if it strays from what has made them successful.
Conclusion and Recommendations
In order for Hal’s Woodworking to succeed the company could create and expand partnerships with other tool manufacturers. This could allow the company to be able to bid for lower prices of products and eventually sell those products to consumers at a lower cost. Another recommendation includes having promotions, free products, or loyalty discounts for regular costumers that visit the website.
This will help retain current customers and help gain new customers. Lastly, online membership could help the company monitor customer trends. With a solid plan in place and expert advice, Hal’s Woodworking could successfully sell products on a website if the company uses its established reputation. Although the company can’t compete with the cheap prices from big companies it can offer superior service which the company is known for.
References:
- Schneider, Gary P. Electronic Commerce. Boston, MA: Course Technology Cengage Learning, 2013. Print.
