SWOT Analysis for Toyz
* Each partner invested £5000 Capital, and borrowed another £10,000. This is strength because it is a good source of capital for the business.
* Kids love these designs. Designs are appealing, kids buy what they like
* Designs have been really well received. This is a strength because the product has met the customers needs
* Sold 120 toys before last Christmas. This shows the demand for the toys. This could be a weakness as competitors may sell more in the same time.
* Initial order of 400 toys and 100 toys per month after that. This again shows the demand for toys and also how successful it has become.
* Products purchased were original and well-made price was not an issue. Designs are unique. This could become a disadvantage as design ideas could run out.
* Young mothers in the 21-25 age group made nearly all purchases. Majority of which have most disposable income. This could become a disadvantage as the age group is limited and their likes could change.
* November and December busiest months of the year. This brought about a good turnover. However because other months do not match up to this it could seem to stake holders that sales of toys are declining.
* Shaid’s shop attracts wealthy Clientele. Again this is another good source of income. Products can be put at a much higher price, which will not bother the Clientele.
* Retailers urgently need orders. Toyz cannot cope with excessive demand. This puts the reputation of the company down. Prepare early next time round by making toys in advance. If demand is met then it will have the opposite effect.
* TOYZ have to pay higher wages than planned. Negative effect on turnover as money could have been used elsewhere to increase turnover. Higher wages mean that employees are much happier. Therefore they work more efficiently and productivity is increased.
* Company has no clear objectives, agreeable to all. This causes conflicts within the business. Conflicts means less cooperation therefore partners cannot get their views across to improve company. One way around this would be to come up with a mission statement and some objectives, which are agreeable to all.
* 48% of people questioned thought packaging was poor. Bad packaging brings the quality of the product down. Improvements can be made to the packaging by means of different designs or by using different materials for the packaging.
* Product range is too small. Therefore TOYZ does not provide much competition when going in to the market, as range is limited. Designing many Toys and putting them out in the market together can address this. If customers do not like one product they are bound to like another product.
* Sales volume needs to be increased and greater distribution is required. This will allow for a greater chance of potential customers.
* Success depends on Andrea’s success to find new outlets. There is too much pressure one persons head. All partners of the company should make it there responsibility to find new outlets
* There is no marketing support for the product. Potential customers do not know about the product. The product Toyz has is good. It just needs to be promoted well enough for customers to find out about it. This will increase sakes volume.
* Fortnightly product delivery was too long. The company has deadlines if these are not met this jeopardises there reputation. Toyz need more staff or better machinery to improve the productivity so that product is always available at the retailers and never out of stock.
* Competitive product ranges offered better opportunities to build ”Families of Toys”. This influences purchases and limits Toyz potential to grow. Toys should increase their product range.
* No local distributors. Travelling is expensive and time consuming. Toyz needs to find local distributors to cut back on cost and time.
* New machinery and staff. More efficient productivity.
* Negotiations with customers, some promising responses.
* Market share and Niche marketing. Competition is too great. So rather than increasing product range Toyz could target a certain area of the within the market
* Reduce manufacturing costs. Increase profitability. Use this money to buy better machinery.
* Mission statements. A goal to be achieved. Something to motivate you.
* By September they were producing 800/month, John estimated they could produce 2000 toys at this stage. Good returns, increase in market share. Use their position in the market to gain an edge over competitors.
* After the machinery was received, No orders had been received (partners felt uneasy)
* Day to day running was consuming all there time (no time to work out a plan)
* Retailers were too greedy. They put the customers off from buying the product.
* Johns wants to increase price sold to retailers in comparison to shop sale. The other partners knew this would kill sales.
* Similar products sold better. Competition is fierce.