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SWOT Analysis

BeesWax engaged the services of organic hair removal business that can favorably compete in the highly
competitive industry in the Philippines.

We know that if we get things right before starting our organic hair removal salon, we will not have to
struggle to attract loyal clients

Here is a summary from the result of the SWOT analysis that was conducted on behalf of BeesWax
Organic Hair removal services;

STRENGTHS WEAKNESSES OPPORTUNITIES THREATS


 Organic and  Competitors  Continued  Intense
High Quality can offer similar expansion for Competition
Material used services quickly online market  Changes in the
for Hair  Limited presence industry’s laws
Removal flexibility in  Ability to and regulations
Services pricing establish  Increases in
 Service cost is  Customer’s additional price inputs can
reasonable extensive branches cause upward
 High Traffic awareness on  Acquisition of pricing
Location organic additional
 Well trained products rounds of
personnel  Low marketing capital
 Loyal initiatives to  Market
Customers as promote the Potential for
manifested use of organic Health
from excellent product on hair Conscious
feedback from removal customers
clients

Strengths

Organic and High Quality Material used for Hair Removal Services

There are a variety of hair removal methods on the market, some of which you can do yourself at home
and others of which need to be done by a professional such as organic hair removal procedure using all
natural wax.

Waxing is a very delicate, sometimes painful, process that opens up your skin’s pores—which means it
can leave you very exposed to harmful chemicals that can wreak havoc on your skin. By choosing an
establishment that offers all-natural and organic hair-removal solutions, you minimize the chances of
experiencing irritation or allergies. Anything that you put on your skin will eventually end up in your
blood, which we all know, travels throughout your body. Thus, the less interaction your skin has with
chemicals, means healthier blood and a healthier body.
Unlike with other hair removal procedure, BeesWax uses all organic and all natural way of hair removal
which assures that clients will not be exposed to harmful chemicals and side effects as well.

Service cost is reasonable

BeesWax uses high quality and organic material for their hair removal services and according to analysis
this is one of the strength of this business enterprise. Aside from that they charge their clients at a
reasonable cost and widely acceptable within the market. With a reasonable price can tapped wide
array of clients ranging from different levels of status in the society which would be an advantage for the
business.

High Traffic Location

High traffic location will somehow help the business get walk in customers by means of attracting them
with new offers and promos. Most business owners don’t realize the importance of location. Location
cannot be overemphasized because your location should be thought of as part of your marketing
budget. Quite literally, your location is your marketing.

A smart business owner will then take the advantage of the high traffic location to be able to promote
their products and services using several marketing and advertising activities. All in all, your location is
extremely important to your success in business. It could just be the most important factor. So, you have
to look at your location cost as coming from your marketing budget.

Well trained personnel

Well-trained employees are the key to your small business success. Studies have shown that the most
successful, productive employees are those who have received extensive training. They’re the cream of
the crop, often having the strongest stake in the company’s future. The reason is that some businesses
know how to take good care of their employees and provide a working environment that helps them
retain their identity, while proving themselves and growing along with the company.

Having staff that are well trained in their roles makes a business far better in many different ways. It’s a
fact that any manager should know, because it is extremely beneficial to a company, whatever industry
it’s in. If a business has a poorly trained workforce, then it’s missing out on a relatively low cost way of
overall improvement. Learning management systems can make the process very easy, too. So what are
the exact benefits of making sure your staff are properly trained?

Loyal Customers as manifested from excellent feedback from clients

No matter the size of the business, customer loyalty is incredibly important. Repeat customers spend up
to 67 percent more than new customers. Plus, it’s up to ten times more expensive to try to attract new
customers than it is to keep the ones already doing business with you.
Building customer loyalty gives you a high return on the time, effort and money you invest in providing
good customer service. Loyal customers buy more, more regularly, and the cost of selling to them is low.
And they will frequently recommend your business to others.

Understanding customer needs, providing good service; handling customer complaints well and staying
in regular touch all help improve customer loyalty.

Weaknesses

Competitors can offer similar services quickly

Your competitor could be a new business offering a substitute or similar product that makes your own
redundant.

Competition is not just another business that might take money away from you. It can be another
product or service that's being developed and which you ought to be selling or looking to license before
somebody else takes it up.

Knowing who your competitors are, and what they are offering, can help you to make your products,
services and marketing stand out. It will enable you to set your prices competitively and help you to
respond to rival marketing campaigns with your own initiatives.

You can use this knowledge to create marketing strategies that take advantage of your competitors'
weaknesses, and improve your own business performance. You can also assess any threats posed by
both new entrants to your market and current competitors. This knowledge will help you to be realistic
about how successful you can be.

Competition is an inevitable part of the business world, for businesses of any size. It is not a necessary
evil, but rather an important part of the business ecosystem. In fact, competition can be an effective
tool for growing and improving your business.

Limited flexibility in pricing

Flexible pricing is a business strategy in which a product’s final price is open for negotiation. In other
words, buyers and sellers can get together and try to knock the price down or push it up. Flexible pricing
does not only apply to the price of products but services too. In fact, it is a common strategy in tailor-
made services.

Most customers like flexible pricing. When we can influence prices, we can more easily find what we are
looking for at an affordable price.

Customer’s extensive awareness on organic products

Organically produced alternatives have shown remarkable industry growth. Even with strict adherence
to the production practices and increasing availability, the majority of consumers are still not aware of
organically produced alternatives. Awareness of organics does not necessarily translate into actual
consumption. Achieving awareness and understanding the linkage between awareness and purchasing
organics is fundamental to impacting the demand for organically grown products.

Low marketing initiatives to promote the use of organic product on hair removal

The business should conduct marketing and awareness campaign in order to increase the knowledge
and consciousness of the consumers on the organic alternatives to be utilized on hair removal services.
If the business want to reach the most potential customers possible, they need to speak in a way that all
of them can understand. The good news is that if they speak simply, they will reach both the unaware
and the gung-ho consumers and connect with all.

Opportunities

Continued expansion for online market presence

As the technology advances every business must be able to adapt with the changes specifically the
utilization of online resources such as websites, apps and social media. BeesWax has a Facebook Page
and other social media accounts to cater online customers regarding the services they need and also to
answer their queries and concerns. The business will to continue to increase its online presence for the
benefit of its customers.

Websites and Apps for mobile devices can be used to increase the awareness of the potential customers
regarding organic alternatives as well as the pertinent information about the business.

Positioning the business as the expert in hair removal using organic alternatives and reaching clients and
prospective clients in the places where they spend time today is becoming increasingly important for
enhancing your credibility, reputation, professional relevance, and referral power.

Ability to establish additional branches

As the business grows and become established it will have the ability to establish new branches based
on a careful research and planning from the management. BeesWax, currently has six (6) branches
strategically located in the heart of Metro Manila. This will also require extensive information drive
regarding the essential benefits of using organic alternatives on hair removal services in order to acquire
more prospective clients who will patronize the additional branches for BeesWax.

Acquisition of additional rounds of capital

Every business can always use more cash. Ideally, that cash will come from profits, but there will be
times when you need to turn to financing routes to increase your available capital. Taking on debt or
new investors can spur your company to greater growth and stability, but it also comes with downsides.

This is probably the number one reason businesses raise capital. BeesWax have an exciting growth
opportunity, but they need more money to pursue it. Maybe you want to expand your successful local
business to a regional or national scale and you need cash to open new locations, hire new people, and
advertise in new markets.
Market Potential for Health Conscious customers

Many consumers are under the impression that components found in "organic" or "natural" hair
products make them inherently safer. Consumers cited health and the environment as the top two
motivations for choosing organic alternatives when it comes to hair removal services. With this
potential, BeesWax must consider this as one opportunity to dig deeper and promote wide
consciousness among consumers regarding the essential benefit of using organic, non-toxic and all
natural alternatives.

Threats

Intense Competition

Today’s world all businesses around the world become intense competition. Companies have to find
their own strongest strategies by using effective marketing tools in order to survive in the business
competition. The way I see it, competitors are everywhere.

Understanding what your customers want and reacting to their needs quicker than your competitors
can give you a crucial advantage in a tough market. To be competitive, you must ensure the main focus
of your business is on your customers.

You must also understand your competitors' strengths and weaknesses and how they will react to
customer needs and changes in the industry, so you can stay one step ahead. At the same time you must
make sure your business complies with relevant competition laws.

Changes in the industry’s laws and regulations

It is also important to know that the government can change the rules and regulations concerning
businesses from time to time. Therefore, to be on the good side of the law, ensure that you are up to
date with your government laws.

Change in business laws means changes in the way businesses operate. Taxation policy is one the
government policies that affect businesses directly because taxation is based on the amount of money
earned by all businesses. For example, increase in corporation taxes which focus on the businesses
profits has an effect similar to increase in costs.

Business laws affect employer to employee relationships and vice-versa. For instance, it is mandatory for
employers to follow government regulations regarding the way they treat their employees and their
hiring mechanism.

Lastly, governments impose business rules and regulations to ensure that all businesses are run in line
with codes of ethics, good health and safety of the consumers.
Increases in price inputs can cause upward pricing

An increasing-cost industry is an industry whose costs for production go up as more companies


compete. When there are just a few players in that industry, the costs for production are low. However,
when many newcomers enter the scene, demand for resources rises. In this industry, resources are
limited, i.e., finite. Subsequently, the costs of these resources rise. This situation creates an increasing-
cost industry.

Put simply; an increasing-cost industry is one that results from an increase in competitors. The greater
number of competitors or producers pushes up the prices of the limited resources. Specifically, they
push up the prices of the resources that companies need for production.

Any industry where supplies become scarce risks becoming an increasing-cost industry. If the number of
firms in that industry rises, the cost of materials for production will rise. They will rise because more
firms mean greater demand. Greater demand, if supply remains constant, results in rising prices.

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