SWOT ANALYSIS

SWOT Analysis is a comparison of strengths, weakness , opportunity and threat .The

central purpose is to identify the strategies that will create a firm’s specific business
model that will best designs, fit or match company’s resources and capabilities to the
demands of the environment in which it operates.

Once they become aware of the threats and opportunities in the external environment
and the strength and weakness in the internal environment of the organization at
comprehensive analysis of these elements. This comprehensive analysis is known as
SWOT Analysis

SWOT Analysis is such a Systematic Study and identification of those aspects and
strategy that best suit the individual company’s position in a given situation . It should
be based on logic and rational thinking. Khadi and village industries are also their
strength, weakness, opportunities and threats .

STRENGTH

Every organisation has certain strong points which are known as its strength.Khadi
and village industries are also has strong points.

1. Skilled Labours.

The company have the service of persons having more than 20 to 27 years
of experience in this field.

2. Adequate resourses

The association have a dye house and Mini warp Unit , honey unit in
Avinissery complex.

3. Quality raw material

Good quality raw material available from central silver,Kuttur.
4. Steady Market
There is a very good and steady market for the Khadi products.

5. Good Maintenance System

The association have manufacturing facility of charkas and loans for
repairs in Avinissery complex.

6. Flexibility
There is flexibility in production volumes and product designs.

7. Quickness
There is quick decision making.

8. Efficient employer-employee relationship.

There is an efficient and healthy relationship between employers and
employees.

WEAKNESS

Weakness is the capability , limitation and deficiency in resourses such

as technical , financial, manpower, skill, brand image and distribution pattern.
The factors tend to decrease the competenues of the firm.

1. Lack of artisans
The company lacks the service of adequate number of artisans. This creates
difficulties in loading and uploading of materials.

2. Low wage
It creates dissatification among workers and hence it reflects in
productivity.
3. The charkas and looms are very old it create delays in production and affect
quality.

4. Lack of fund

The company lacks adequate funds further expansion.

5. Lacks of promotional activities

Khadi village industries do not provide any promotional activities.

6. Some other weakness include technological obselesence, in efficient

management and marketing inability.

OPPORTUNITIES

Opportunities are entirely external to the organization and they are

present in the environmental situation in which the corporation functions.

An opportunity is a major favourable advantage to a company;

provide the same can be availed strategically . The external environment analysis
may reveal concern certain new opportunities include.

1.Skilled and experienced spinners and weavers.

2.Growing demand of its products .
3.Demand for readymade Khadi products of new designs and quality.
4.Judicious purchase of materials.
5.Out sourcing by large units.
6.Overseas market.
7.Expansion and Modernization of all units/high investment.
 THREATS

Threats are also external to the organization. Threats are danger signals and
these signals should be properly observed . For this the management should
revise their strategies and tactic to meet them. Top management should have
the capacity to foresee the possible threats in the short term and in the policies
and prepare strategies.Threats can be effectively blocked by proper analysis and
reappraisal of the existing policies and by developing strategies suitable to meet
the situation.

1. Price variation
As per prices of raw material changes in accordance of the season, there is
a chance of less demand of the product.
2. Govt. Policies
Sometimes affect the working of the industry.
3. Competition
There is a high competition taking place in the field of cottage industry.
Kerala Khadi and village industries complete with other cottage industry in
Thrissur.