SWOT Analysis

SWOT analysis is what every business needs to do while it is developing its business plan.  The book defines it as,” The marketer should conduct a SWOT analysis, by which it evaluates the company’s overall strengths (S), weaknesses (W), opportunities (O), and threats (T). Strengths include internal capabilities, resources, positive situational factors that may help the company to serve its customers and achieve its objectives.(Marketing An Introduction, Armstrong/Kotler, 55) Weaknesses include internal limitations and negative situational factors that may interfere with the company’s performance. Opportunities are favorable factors or trends in the external environment that the company may be able to exploit to its advantage. And threats are unfavorable external factors or trends that may present challenges to performance(.Marketing An Introduction, Armstrong/Kotler, 55)”  So here we will determine all of those things for my bar called “House of Brews”.

S:  Strengths are beer making knowledge, also people skills and training my employees with this knowledge.  Also my resources with knowledgeable professional beer makers that I have contacts with; finally my own knowledge having bartended for 4 years in my younger days.  There’s the fact that people are going to drink beer and alcohol no matter what it costs some people are addicts.

W:  Weakesses include myself being too nice and doing whatever it takes to get people to come in, even I that means lowering prices or happy hour prices.  Also I have never run a business before just worked for one so I have no idea everything that goes along with that.

O:  Oppourtunities included being that we are in an alcohol friendly city, people who live here hate going to the strip so if they can find that sort of atmosphere elsewhere in the city they will come back over and over again. 

T:  The biggest threat being the strip itself.  I cannot compete with the amount of money and resources that the hotels on the strip have.  Also there are many other brew houses in the area that already have established clients so how will I pull them away from those places and into mine.