Situational Analysis for My Melts - Paper Example

2021-08-27 01:09:23
3 pages
579 words
University/College: 
Vanderbilt University
Type of paper: 
Argumentative essay
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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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