An Analysis over Opportunities and Threats of Mow More Supplies

机会和威胁，如SWOT分析的主要外部条件，在评价企业经营绩效的收获更多的供应起着至关重要的作用。在SWOT矩阵，机会是外部因素，积极与条件，同时，威胁是对环境产生反应的因素。机会和威胁，共同贡献的外部业务分析。外部环境分析的意义是帮助一家公司预测并与周围的变化保持同步。通过与商业环境的发展，该公司能够维持和加强其竞争优势，并避免潜在的陷阱，这最终可能提供良好的财务业绩。

1. The Significance of Analysis over Opportunities and Threats
  Opportunities and threats, as major external conditions of SWOT analysis, play a vital role in evaluating the business performance of Mow More Supplies. In the matrix of SWOT, opportunities are the external factors which positively interacts with the conditions, meanwhile, threats are factors which negatively respond to the environment. Opportunities and threats together contribute to an external business analysis. The significance of analyzing the external environment is to help one company predict and keep pace with the surrounding changes. By developing alongside the business environment, the company is able to sustain and strengthen its competitive advantages and avoid underlying pitfalls, which finally could deliver favorable financial results.

To conduct a general and comprehensive evaluation over the external environment, the following six factors ，which are demographic, sociocultural, political and legal, technological, economic and global aspects are often taken into consideration.

To have a comprehensive business judgment of Mow More Supplies, influencing factors are to be discussed to make a clearer view of the opportunities and threats it encounters in the current situation.

2. The Opportunities Analysis

From the perspective of demographics, due to its focused marketing campaign in the east Mississippi, Mow More Supplies could keep its current market share in the east of Mississippi and at the same time expand its business to the neighboring area and states around Mississippi, for example, Alabama. Concentrating the marketing activities in the east of Mississippi only could maintain its competitive advantages in the short term, however, for the longer term, to sustain a healthy financial performance, it is advisable to expand its marketing coverage to the neighboring areas. It is because lawnmower spare parts are standardized hard wares which can be applied on the common machines no matter where they are produced and consumed. Therefore enlarging the covering area can be a good way to circulate its stock and amortize its high expenses on the storage and shipping.

From the aspect of sociocultural, American residents have a habit of regularly mowing their lawns for the beautification of their living environment. In this case, high frequency use of lawn mowers directly leads to an increasing demand of spare parts. Seizing this opportunity, Mow More Supplies could target the lawn mower owners and offer service packages which include the spare parts often used and the repair service as well. In this way, customer loyalty could be quickly established through purchasing a comprehensive service at one time.

From the point of technology, in order to run a smooth and efficient delivery system, Mow More Supplies adopts an advanced storage system into its working system. By keeping a full range of stock in hand, Mow More Supplies can fill the demands of its clients. In other words, through abundant spare parts storage, it can fulfill the needs of the clients timely which could keep and develop more clients.

In regard of the economic factors, GDP of the targeted market plays a key role in the business performance. At present, the United States is experiencing a slow but steady economic recovery. At the same time, unemployment rate is declining gradually. Therefore, the overall economic situation is developing upwards which lead to a higher net disposable income among American households. With more disposable income in hand, it is an opportunity to Mow More Supplies to promote its products among households and lawnmower proprietors.

3. The Threat Analysis
Changing society often brings forward negative uncertainties to one company, which often leads to misjudgments to the current situation or poor financial performance.

Considering political and legal factors, the minimum wage is an influencing factor which might contribute to the decline of the profit. The fluctuation of the minimum wage level has a direct impact on the expenditure of one company. An increase of minimum wages not only pushes up the operation cost, but also forces an increase of the price which results in a runoff of the customers. The profitability of the company cannot be easily predicted and controlled which might lead to a less favorable financial performance.

Furthermore, Porter’s Five Forces Model is also often adopted to evaluate the external environment.

In the lawnmowers spare parts industry, due to its instinct of low technology and low capital requirements, there is no high market access to business starters. Thus, the business model of Mow More Supplies can be easily copied by new entrants which is an underlying threat to it.

In this industry, although there are no big companies who monopolize the market, there are many small and medium companies. These competitors forms an intense competitive environment which might threat or hinder the future development of Mow More Supplies. In this situation, it is impossible for Mow More Supplies to raise or even maintain the present pricing strategy which will cause it losing the bargaining power of buyers.

Although Mow More Supplies procures spare parts from manufacturers in bulk, its competitors also do the similar kind of procurement. In this circumstance, it still does not enjoy a competitive edge in the industry.

  As mentioned above, Mow More Supplies is involved in a fierce competition in this industry. Many competitors in this business makes it difficult to stand out unless it break through the norms. Otherwise, it is just a company which can sustain its operation but have no chance to move further forward.

4. Suggestions to Mow More Supplies.

In order to outperform in lawnmower high wear parts industry, a multi-faceted strategy should be proposed to pull the business to a sound rail.

Concluded from the previous analysis, Mow More Supplies could expand its business coverage to larger and wealthier residential areas. Having a wider presence in the southeast of the US could help it seize more business opportunities, meanwhile doing a wider range of marketing campaign in the neighboring areas can minimize the risks of consumption habit differences.

Second, Mow More Supplies keeps a high fill rate of the stock in Alden, NY and distributes when orders received. To keep an efficient and economical logistics system, the company could move its stock sites to somewhere near Mississippi and introduce a computer-aided storage system. In this way, Mow More Supplies could reduce the cost on the physical stock site, accelerate the circulation speed and cut the delivery cost and time.

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