Diploma in Commerce Business Environment Introduction
There are a variety of factors that will affect how a business will operate, and decision implement that will change a business. Using SWOT analysis and Porter’s forces we will be able to better dealt with the problem that a business is facing. SWOT stands for strength, weakness, opportunities and threats. Understanding these 4 points in SWOT analysis will enable us the knowledge of business environment we are dealing with, thus allow a better strategy to form. Porter’s five forces include newcomers that could draw away customers, bargaining power of suppliers, bargaining power of buyers, threat of substitute product and lastly the constant rivalry among competitors. Understanding these five forces will help to determine market attractiveness providing us with information of when we can enter or exit certain industry Company Profile Spectacle hut has more than 40 stores throughout the whole Singapore Island. It is consider being the largest local operating optical retail chain in Singapore. Founders Gary Khoo and wife Sara Hay started with the shop in Clementi during 1997. Although working with only theirs saving and met with lots of challenges during the company infancy period, during their last fiscal of 2011 they have cash in about $40 million in revenue. The company main brand, Spectacle Hut, is targeted towards the middle to upper class shopper, carrying high-end brands such as Cartier, Channel and Gucci. They have also a subsidiary brand name, Blue Eyes, aimed towards the middle to low-end consumers. They have been actively branching out over the past five years, including opening branches overseas like Beijing and Kuala Lumpur. During the year 2008, Spectacle hut was give a grant of $125000 under Spring’s Technology Innovation Programmed, to improve on its existing point of sales system, improvement with stock management. And during the year of 2011, the company has also started with fingerprint-punched system, which will tracked the attendance of the staff, punctuality with ease and effectively. The company has since reduced the expansion rate, after reaching a reasonable spread of branch across the island (The Straits Times (Singapore) , 2011; Spectacle Hut, 2008).
Diploma in Commerce Business Environment SWOT Analysis
We start with finding out the strength, weakness, opportunities and threat.
(Figure 1) There are two stages in SWOT analysis, internal and external. Internal consist of analysis consist of the strength and weaknesses within the internal working of the business organization such as Spectacle Hut. While external are the opportunities and threats that affect a business externally. As (Berry, n.d.) explained, the first and foremost things to do in SWOT analysis is to recongized and sort them to their own factors, positive or negative, one of the four factor in (Figure 1). Strength Usually a positive attribute that is either tangible or intangible. One of the key components that make Spectacle Hut able to come out from larger competitors during their infant years is the ability in sourcing out cheaper source of product, removing the middle thus making the price of their product cheaper. Have strong brand names like Gucci and Channel allows them to be able to cater to upper-class people. Weakness As Spectacle Hut is still considered as a young company having their doors open in the later 1990s, many of their competitors still have many loyal customers as compare to. Their reputation in Singapore is less recognizes then other company, Capitol or Paris Miki, which both are MNCs. Opportunities
Diploma in Commerce Business Environment
In recent years Singapore children suffering from myopia, they will need to have a pair of prescription glass. Since young children prescription would be stable till a much older age, they will tend to replacement...
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