Why SWOT Analysis is Needed
The SWOT analysis is your key to setting up a stable organization. The S stands for strength, the W stands for Weaknesses, the O stands for Opportunities while the T stands for threats.
An analysis of such kind is of great use to your business. It helps you to understand your aims, goals, and ambitions. At the same time, you get a clear image of the pros and cons related to your business. Based on that image, you can capitalize on advantages or avoid the disadvantages.
If you are an executive at a delivery service company, then the SWOT analysis is mandatory for your company’s success. However, keep in mind that the SWOT analysis for a delivery service company is often quite different from that of other companies. Not everything can be brushed with the same paint.
SWOT Analysis for Competitive Edge
Delivery service companies can be quite similar and quite different at the same time. They are similar in the sense that they have a homogeneous working mechanism. Each company is based on the same concept of transferring items from one place to the other. Each company strives to provide the fastest delivery possible. Each company puts emphasis on keeping the items to be delivered as secure as possible. From this description, you may think that there is barely any difference between the various delivery service companies in the world.
However, that perception of yours will change as soon as you conduct a thorough SWOT analysis of each individual company. The results of your analysis will clearly highlight the unique cards that each company brings to the table.
The companies may have the same missions and visions. It’s how they plan to carry out those missions and visions that make them unique. The path that they choose will determine the limitations of their strengths, the vulnerability of their weaknesses, the frequency of their opportunities and the danger of their threats.
SWOT Exclusives for Delivery Service
As an executive of a delivery service company, it is your duty to pay the utmost importance to SWOT analysis of your company. This is one of the simplest and most basic ways of setting your company apart from the rest. If you want to edge ahead of others in the competition, then start employing your resources into SWOT analysis.
This begs the question, how will you be able to identify the strengths, weaknesses, opportunities and threats? The following is a brief description to help you out.
Delivery service companies have certain strengths that they can always take advantage of. But first, your SWOT analyst needs to pinpoint these strengths.
The biggest among them is customer loyalty. A person does not require the services of a delivery company every day. Do you order a pizza every night? Most probably not. You only order it when you friends come over for a game night. When you do order it, however, you probably call up the same delivery guys who brought in your previous pizza. When it comes to deliveries, customers don’t like to experiment or explore much. Sticking with the same brand gives them a sense of assurance. As a result, as an executive of a delivery company, you can be sure to almost always retain your customers unless you make a major mistake.
Another huge strength of a delivery service company is that they are always available. Most of the delivery service companies allow their customers to order products 24/7, usually through their website. This means that the customers can reach out to your delivery service company at any time and from anywhere. Unlike other companies, which are shut down for a certain time of the day or the week or the month, your company’s business will roll on continuously and the influx of orders should not die down.
Every delivery company has its own set of weaknesses. Make sure that your SWOT analyst takes them into consideration.
The world has become technology based. Delivery service companies are trying their best to adapt to new technology. Those who can’t adapt, end up lagging behind.
For instance, if your delivery service company does not have a proper IT department, then your delivery service website is likely to crash from time to time. Every minute that is it out of service you lose a huge amount of orders from your customers. Also, most delivery services have their own smartphone apps now. If your delivery service doesn’t have one of its own, then this will be a huge weakness for your company.
Another area, where delivery service companies can often suffer a drawback, is research and development. Once again, delivery services need to adapt and evolve constantly. Without proper research and development, you cannot take your delivery company to the next level. You will soon see your rivals outdo you in sales and revenue simply because they reaped the rewards of having done thorough research on their internal system and external services.
The opportunities that you are presented in a delivery service company are often due to external factors. Acquisition synergies can be a potential game changer for delivery service companies. Your SWOT analyst needs to pay as much attention as possible to this particular topic.
Furthermore, opportunities will also come your way in the form of innovations. This is kind of similar to the evolution factor that was mentioned above. Your ability to invent and innovate will propel your delivery service company to new heights. Innovate products and services are always in demand. Making these available to the customers gives you the opportunity to out-muscle your opponents.
There is danger lurking in every corner for delivery service companies. It is imperative for you SWOT analyst to anticipate these dangers and measure the damage they can cause.
Take, for example, a political unrest. Delivering goods from one part of the country to the other when you have hundreds and thousands of people protesting and rioting in the streets becomes a steep task. You even run the risk of endangering your life and jeopardizing the safety of the goods to be delivered. The last thing you need is an injured delivery boy and tarnished goods.
Then there’s the threat of international competition. If you are running a local delivery service, you are always vulnerable to being overpowered by a foreign company. So make sure that your SWOT analyst keeps tabs on the intentions of the major league players in the business.
Last but not the least, take into account the changing taste of your consumers. You could make a ton of money delivering a certain type of good that is in trend. However, the moment that item goes out of fashion, your orders will decline and your business will suffer. So keep an eye on what’s trending and what’s not.
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