Paper Sample on Importance of SWOT Analysis in Strategic Planning

Introduction

The importance of SWOT analysis is that the analysis will help in developing a strategic plan that will ensure there are increased car sales by identifying the weaknesses and threats that are causing reduced sales. Strategic planning is identifying the right thing to do for the business to succeed (Berman, 2019). The car dealer business operates in an environment with other industrial players; therefore, the strategic plan will help the business meet its goals. The SWOT analysis will help the business come up with ways to utilize its strengths and opportunities that exist to grow.

Is your time best spent reading someone else’s essay? Get a 100% original essay FROM A CERTIFIED WRITER!

Save 25%

Strengths

The strengths of the car dealer include the ability to meet demands, the company has been in operation in a large city, and hence it can consider opening other branches in different locations within the city. The financial strength allows the dealer to identify the challenges that make the consumer to opt-out and deal with the challenges (Berman, 2019). The second strength for the car dealer is that it has many clients that have been buying vehicles from the dealer; hence a relationship between the dealer and the customers has already been created. The relationship is a strength that the car dealer can use to deal with the reducing sales challenge.

Weaknesses

The weaknesses of the car dealer include failure to embrace change with the changes happening in the world and being embraced by competing car dealers. The weakness has made the dealer to lose customers who are now purchasing vehicles from other competing dealers that have embraced change and offer better services (Berman, 2019). The second weakness is that the dealer does not have a strategy to retain its customers, where the customers would give feedback on the areas they would like to improve. The dealer is unable to know his weakness because there is no feedback and changes implemented to improve services.

Opportunities

The opportunities that the car dealer has include selling electric and hybrid vehicles that are modern and environmentally friendly. There are few dealers that specialize in smart and hybrid cars, and the demand is increasing as people and governments encourage people to use environmentally friendly cars (Berman, 2019). The opportunity will grow as electric cars become more popular because of their efficiency and lower operation costs. The second opportunity is to partner with financial institutions that will finance customers who want to purchase the vehicles but lack enough resources. The partnership will increase the number of customers that purchase vehicles from the dealer.

Threats

The threats include increased competition from other dealers that sell cars. More dealers are setting up businesses in the city; hence customers are getting a variety of options to choose from when purchasing vehicles (Berman, 2019). The competition can make the business unviable for the dealer if the profit margin reduces to the extent that the dealer is unable to pay for expenses to keep the business operating. There are also technology threats where technology evolves, giving the buyers the opportunity to purchase vehicles directly from manufacturers efficiently. All sectors are evolving, with technologies increasingly being used to transact.

Use of Gantt Chart for Strategic Planning

The car dealer can use the Gantt chart for strategic planning to ensure the plan to purchase vehicles is done based on demands. Gantt chart will allow the dealer to stock the vehicles depending on demand and avoid unnecessary costs that the business will incur when vehicles at the showroom are not purchased (Ong, Wang & Zainon, 2016). Gantt chart will allow the dealer to plan and determine the resources required to learn the business successfully.

References

Berman, C., 2019. A SWOT Analysis for Car Dealers. [Online] You’re Business. Available at: <https://yourbusiness.azcentral.com/swot-analysis-car-dealers-23361.html> [Accessed 14 September 2020].

Ong, H. Y., Wang, C., & Zainon, N. (2016). Integrated earned value Gantt chart (EV-Gantt) tool for project portfolio planning and monitoring optimization. Engineering Management Journal, 28(1), 39-53.