SWOT ANALYSIS

Strength
● The products included in the bundle are in demand and are relevant to the
current world situation
● The business has the capability nationwide as long as it is in the range of the
selected delivery service
● Helps in promoting local business since the supplies are being bought from them
● The mixed bundling selling strategy applied by the business has been proven to
be effective

Weaknesses
● The preset designs of the tote bags may not be satisfactory since there is a wide
range of consumers with different tastes and preferences
● There might be defects in products because the acquisition of supplies are
mostly wholesale which will in turn result to a waste in capital
● The partners involved in the business do not live closely to each other so there
might be issues in terms of communication

Opportunities
● The business might gain in popularity since the main operation and advertising
mediums are in social media
● There will be an option for customizable designs for the tote bags to suit
consumer preferences
● The bundles are customizable to further gain the attention and persuade the
consumers to buy the products
● New products/bundles may be introduced if the business goes well

Threats
● There are a decent amount of competition especially those that use the same
selling strategy of bundling
● There is a large market for online selling and more business are opening
 Microenvironment: Porter Model

Strengths Weaknesses

● Affordable products at a ● Highly competitive market for

profitable individual products
● Inexperienced staff
price ● Being new in the market thus
having a weak market image
● Customization to fit consumers ● Gaps in bundle (product)
taste production
● Variety of choices from individual
products to bundles
● Products fit the current trends and
needs
● Staff have high interpersonal skills,
effective for attracting consumers
● Staff are knowledgeable in
maximizing social media marketing
● Efficient and convenient mode of
purchasing and delivery for
consumers
● High integrity and accountability for
staff and pleasant attitudes
PEST Analysis

Political:

Opportunities
Concerning the political sector, OUT Home Essentials’ owners will follow the rules and
regulations (those under RA 9501) set by the government for micro businesses. The
Department of Trade and Industry (DTI) also said that small online sellers are exempted
from registering their business with the Bureau of Internal Revenue (BIR) if the business
has an annual earning of P250, 000 and below, which applies in our case. The
government implemented protocols may affect the demands of the products as it is still
necessary amidst pandemic.

Threats
Strict community quarantines in some regions set by the government may affect the
delivery time of our products.

Economic:

Opportunities
In terms of the economic sector, OUT Home essentials considers the purchasing power
of their target consumers and will offer quality products at an affordable price that is
worth the money of their budget-conscious customers. Government protocols result in
making OUT Home essential products at peak season for the buying of consumers as it
is considered a necessity at present time.

Threats
Since the start of the pandemic, inflation rate has continuously increased and this can
affect the product’s price if the manufacturers will also increase their prices. Some
people might think of it as unjustifiable if they are on a tight budget and leaving with only
the people with petty cash as the possible customers. There would be lots of
competitors with different strategies and promos as these products are not exclusive for
OUT Home essentials.

Sociological:

Opportunities
The target consumers of the business are teenagers to young adults which, based on
statistics, holds the highest rate in online shopping which is beneficial to OUT Home
Essentials. The business has a goal to distribute the products to them safely and for the
customers to find it essential. Not only that, but the business caters new trends and
ideas that will attract customers and is helpful for the increase in sales. The products
are also available not only for that specific demographic but are open for everyone
interested to gain it. With the goal of impacting the market’s safety it can be used in day
to day life, in their workplace or other activities, while following the latest lifestyle trends.

Threats
Due to its target market, which are teenager, it is also critical for the business to be
successful in its own area. Teenagers are more sharp and wise with the products they
buy and since there are still numerous competitors, it would be a threat for the business
who is starting and blooming. Also, the brand name is a key marketing strategy. As the
OUT Home Essential is locally based, not many teenagers and other customers are
familiar with it. The customers are also good at examining if the products are worth
buying thus, it is a great reminder for this business to remember these kinds of threats.

Technological:

Opportunities
During the worldwide pandemic, many businesses are limited to working through online.
The founders and creators of the business are teenage undergraduates who are good
at using technology in various forms. Social media is also an easy way of marketing for
the business since it is composed of partnered students which open to a wider mass of
marketers. The management of the business have accomplished and are undergoing
business courses which is beneficial to their market awareness and acceptance during
the entrepreneurial process. The management of the business is also technology
literate which opens more opportunities in selling and advertising the business.

Threats
Technology is emerging and more updates are created. It is a need for adaptability in
the business so that it can expand and continue. Another threat is that technology may
be limited to some of the workers in the business. Solving technological problems are
much complicated since the team is far away from each other.
Strategy Formulation

Market Penetration

● The Out Home Essentials have mixed set bundles wherein its price may vary
depending on the consumers’ chosen bundles, they can also choose to bundle products
together or buy them individually.
● The prices of the bundles are affordable. Customers can save money if they choose
bundles instead of buying it one by one.
● Entrepreneurs of Out Home Essentials will make use of consumer feedbacks to
develop and improve the bundles and individual products to develop a good product
reputation and attract more consumers.

Market Development

● The products of Out Home Essentials have a nationwide delivery through GoGo
Express.
● This will be promoted using different Social Media Marketing Platform wherein
entrepreneurs of Out Home Essentials will make use of different social media platforms
to spread news and invite people to purchase from the bundles.
● There is also an option where consumers can customize their bundles and pick the
products that they want to include. There will be a freebie which is the scrunchy for
every bundle the consumers will buy.

Product or Service Development

● The products are affordable, convenient, and trendy bundles that will protect
consumers from the Covid-19 virus while they are out from home, while also living up to
its corporate social responsibility by minimizing its carbon footprint.
● The Out Home Essentials offers mixed bundling of their products.
● In mixed bundling, consumers are given an option to choose and personalize
products from a variation of products
● Consumers have the option to customize the design of the tote bags.
● There will be a special freebie which is the scrunchy that will be given on each bundle
that you choose.