Company And Swot Management

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Company and SWOT management

Introduction

Globalization every day is constantly changing, thus generating that the creation of electronic shops is popular in the national market, causing companies to create new trade strategies so as not to fall into decline.

Silvana online store is a microenterprise that starts with an electronic commerce later giving rise to a physical store, this being the innovation that the company has implemented in the sales area. And therefore, it is desired to know what this strategy is changing, being the research question for this monograph?

To answer this question, calculations were made of the profits that this company has generated with its two businesses, as well as the market in which each of them participate, which involves the analysis of the behavior of these consumers, involves the analysis of these consumers,thus detecting the profitability of the company, for this the SWOT matrix and the 5 Porter forces were used.

The calculations and deep study of the company, the local and national market were supported thanks to the secondary sources obtained from web pages and texts related to business management, also primary sources such as physical and virtual surveys, financial accounts and interview. Allowing a correct analysis of the company, giving as a conclusion that the physical trade of this store is the largest source of income, however, the company in general is not as profitable as a company that carries out the two businesses in a globalized market.

Introduction

Silvana online store is an electronic and physical trade company that offers footwear products, clothing, accessories, etc., for men and women . The electronic store is an ecommerce B2C, created in 2017 by Silvana Taisha and Darli Taisha located in the Yantzaza canton, Ecuador. It is associated with the El Empire Hostería, thus being a family business.

These two young women created this venture using the social networks of Facebook and Instagram as a virtual medium, but later a physical store was created by their customers. Miss Darli Taisha is in charge of selling the products in physical and publishes the product on social networks, while Miss Silvana Taisha provides products from the United States.

Goals:

Analyze and detect the profitability between the virtual store and the Silvana Store Store online store, studying the factors linked to the sales of these shops.

Methodology.

This monographic work will be supported with information from primary sources such as: Silvana Financial State. In addition, secondary sources will be: the book Business Management-Oxfort, documents and reports of websites related to this topic such as: the reality of online consumers, profitability of online companies, etc.

Physical trade:

It is all that activity of sale of goods and services in person, in which a purchased and a seller intervene, who interact on the product or service. They generally offer a variety of products, in which the consumer has the option of seeing the product before buying it, according to their taste.

Electronic commerce:

Electronic commerce is all that operation that is carried out through the Internet, in which physical intervention is not needed. In addition, it is one that distributes information, products, services or financial transactions, through electronic networks, forming virtual business structures.

Analysis and comparison of results.

The results obtained from the calculations of the profitability indices allowed to evaluate the financial statement in which Silvana is online store, which resulted in the following:

The gross profit margin is 21.4%, referring to the fact that for the sale of $ 100 it has a gross gain of $ 21.40, meaning that the company does not have good profits despite using the two shops. The possible influential factors of the low gross gain can arise from the high competition rate that exists in the local and national market, since most customers return to the month those that mean that they may acquire their products in other places, such asAlso the costs that arise from the purchase of the different suppliers and import payments from them from the United States to Ecuador, or in the same way, the lack of physical advertising to increase their participation in the local market.

Although publications on social networks tell as advertising, not all people review their accounts every day. However, a certain of their clients met the Gracia store to their friends or on their own, but this recommendations are usually slow to attract customers. On the other hand, the net profit is 15.8%, which is a percentage of less than 50% that is the minimum that a company must have to be stable, meaning that the company does not control its general expenses correctly.

These factors may come from the mismanagement of the owner since it is a freshly positioned company in the market, also the mixture of financial accounts with the restaurant to which it is associated since it is a family business generating expenses when acquiring products orarrangements for this which are not properly measured. These being the possible factors that generate low profits for Silvana online store, and which should optimize to increase its usefulness.

During the comparison of sales between the two businesses, it was assimilated that the income of electronic commerce represents only 37.8% of the total income, while the physical trade 62.2%, which means that the largest source ofSilvana’s income online store is physical trade, this being its innovation area.

With respect to the above, Figure 1 presents the sales that electronic commerce has been generated, in which irregular sales are observed during this period, certain months has presented sales greater than $ 7000, and a few months sales smaller than $ 4000. While graph 2, which presents electronic commerce, has more frequency sales up to $ 4200, and of which one month has exceeded $ 7000, however, its trend for sale is low.

STRENGTHS.

Silvana online store performs electronic and physical commerce and therefore share the same imported products from the United States which guarantees their quality and their customers have express satisfaction towards the product . The warehouse in which online sales products are organized became the place of sale in physical being an own place reducing rental expenses.

The owner of the store has used a payment technique (bonds) for their customers who buy products and cannot pay in cash, since their customers spend between $ 250 to $ 300 thus benefiting the customer. A store strength is the use of social networks in the country, such as Facebook with 12 m of users, and Instagram with 3.9 m. In addition, make discounts, raffles, offers and gifts to its customers and users to maintain their faithfulness towards the company.

OPPORTUNITIES

In the country, it has been estimated that the national population presents a tendency to buy clothes, both physical and electronic. Despite being a percentage of 35%, globalization and innovation are taking power in the region and the consumer rate is increasing, being a great opportunity for Silvana online store.

The fashion world is increasing. Physical trade has the opportunity to expand its business by opening a store in the city, allowing accessibility to new customers. In addition, it can expand its product portfolio, which increases the profitability of electronic and physical commerce.

Weaknesses

Physical trade does not have its own name that identifies it and the company’s name only highlights electronic commerce, thus making it difficult to enter new customers. In addition, the company has a bad product organization, it does not present an adequate furniture to expose its products to the customer.

The company does not hire workers, either to serve customers or to package the shipping product, causing laborious work for the owner in days with high demand rate, rotting this the cause of good and regular customer service. The physical trade is located at the end of the city and is located on the back and lower of the El Empire restaurant, where it is not in view of the public, preventing the entry of new customers.

Most of the products offered by Silvana online store are centered for women, with few male products, thus losing customers of this sector. The product that Silvana imports online store are limited, so they are exhausted and other people cannot access the same product, in addition, the import and late process causing economic loss to the company.

Threats

The physical store has a high competition rate in the market, who have a greater competitive advantage. Likewise, electronic commerce competition is much higher since it competes nationally and internationally

The creation of a bad image for its customers is very high, since it is not organized correctly, which would cause bad advertising by its customers.

conclusion

On the other hand, there is the possibility of government problems in the supplier country or ours such as, for example, conflicts between regions or nationally as manifestations against the government. Another threat may be natural disasters or climate changes, harming the sending of the orders to the consumer or during importing the products. 

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