The situational analysis offers the description of the current marketplace. Therefore, this section provides a detailed description of My Melts strengths, opportunities, weaknesses and threats to determine the best areas to concentrate the marketing effort. SWOT Analysis is the framework of choice since it uses diagnostic information to provide a picture of how My Melts fits within its operating environment. Information gathering has involved the planning decision on the method of data collection from every possible source. Data collected is from secondary data through reading reports, news articles, studying My Melts website and related websites. The SWOT analysis is also supported by the 5 Ms framework and the Political, Economic, Socio-cultural, and Technological (PEST) framework. The PEST provides the bigger picture through categories for exploiting opportunities and reducing threats.
SWOT Analysis
Strengths
Products are freshly made to provide maximum fragrance
Offer a range of beautifully handmade products
The company offers own custom-made My Melts burners.
25857201847850Products are made from superior quality Eco Soy Wax
Possession of an online shopping system
Local and international shipping
Multiple payment options Internal factor Weakness
Family run business
New entrants having established shop in 2013
Products made by hand limiting the potential for servicing large orders
Opportunities
European countries demand candles is higher than its production
European imports of candles are on the increase at an average annual growth rate of 4.3%.
256131416372000Developing countries supply share of European candle imports is predicted to increase slightly in the coming years
European exports of candles mainly regard trade within Europe
Various uses for candles globally External factors Threats
European market requirements
Buyers additional social and environmental sustainability certification requirements
Strict standards requirements for Niche Markets
Competition from other manufacturers in the Maltese market
PEST Analysis Framework
Opportunity major Significant Marginal Threats Major Significant Marginal
Political
Brexit
Decrease in tax X
X Political
Brexit
Increase in tax X X Economic
Lower unemployment rates
Economic policies influence on interest rates X
X Economic
Reduced private consumption expenditure
Cryptocurrencies X
X Socio-Cultural
Marketing platform has become broader
Robust cultural diversity
Homemade candles have become an essential home decor item X
X
X Socio-Cultural
Decreased use of candles for home decor X
Technological
Google searches for homemade candles are concentrated around North America and Western Europe
E-commerce in home decoration is increasing X X
Technological
Cryptocurrencies X Consequently, the table below now presents the results of the SWOT analysis that the marketing plans need to address.
Internal Factors
Strengths
Superior quality Eco Soy Wax used to make candle productsPossession of an online shopping system
Ways to Exploit
Market Eco Soy wax products as excellent choice for both health and nature
Market Eco Soy Wax ability to lock in fragrance for longer
Make conscious effort to have a presence online and to drive web traffic to the website from other platforms
Weakness
Family run business
Ways to reduce
Improve formalize business operations and processes to ensure continuity
External Factors
Opportunities
European imports of candles are on the increase
E-commerce in home decor products is increasing
Cultural diversity Ways to exploit
Improve o the product quality and branding
Create competitive pricing strategies
Meet EU Market standards
Meet transportation EU directive packaging requirements
Promote products using information technology communication tools
Supply My Melt products indiscriminately
Threats
European market requirements
Brexit cannot assure the future of business Ways to reduce
Make the business EU compliant
Forecast and prepare the business for any eventualities because of policy changes.
5 Ms Framework
Men My Melts works with local artists and artisans to develop its hand-crafted products
Money Up to eight modes of payments are applicable
Machinery Products are handmade
Minutes Orders ship within 48 hours
Materials Eco Soy Wax which (Non-toxic and free from any pesticides, herbicides or genetically modified materials.)
Conclusion
By inspection, strengths and opportunities far outweigh the weaknesses and the threats. Situational analysis allowed for identification of vital issues to address before My Melts can expand, penetrate the target markets, and creates niche.
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