Swot Analysis

I selected Southeast Racing Parts (SRP) as my business plan for my SWOT analysis. I have reviewed the business plan for Southeast Racing Parts which seems like it could become a successful business. I will explain the opportunities, strengths, weaknesses, threats, and sum the business plan with a thorough summary.

This company has many great opportunities. The customer demand will increase as the business starts advertising at the local tracks and become involved in the local racing community. The products will be appealing to NASCAR racing, which is responsible for about 2,000 jobs producing more than $200 million in expenditures annually -- figures that many in the industry consider conservative in 1998. Many of the people employed within the industry along with their children, other relatives, and friends, take up racing as a hobby. With people taking up racing as a hobby, this will increase sells furthermore. The company at its early stages can not create new or improved products. A research and development department does not exist at this time. Another benefit of the area is that it is centrally located on the East Coast. The Carolinas and parts of Virginia and Georgia will have the benefit of overnight UPS ground service. A large portion of the East Coast and Southeastern United States would be serviced in two days by UPS ground service.

This company has many strengths, the founders have well developed ideas which includes extensive research. SRP has provided a business that supports the largest growing sport in America. It will provide superior customer service by providing quality parts at a reasonable price. To maintain a presence within the racing community and close relationships to customers, Southeast Racing Parts will be an active member of the local racing scene through participation and sponsorship. The business will be evolved within the local community as well as offering a catalog with a mail order service. The catalog will be a four-color edition and subsequent editions will be analyzed to determine the cost effectiveness of publishing in this format.

Despite how well planned this company may be it does have its weaknesses. The company will start out with about three months' inventory on hand which does not provide adequate inventory to maintain a great stock. With the lack of inventory, I don't project the company being able to keep up the high demand of product flow. Availability of a product is of utmost importance. The lack of inventory will also cause an inconvenience to customers for having to wait till the product is delivered from the manufacturer which could cause loss of business. SRP does not have a sufficient management staff. The management staff includes Tim and Molly Jones which are the founders. This company has not put much effort in designing a proper staff. The business plan did not provide enough