Small Business Marketing - Threats |
|
By: Marc Mays Posted: 2010-10-27 07:43:33 |
|
In the last of this four-part series, we will consider the final of the most important considerations for analysis of the marketing efforts of a small business. The threats a small business faces are the last part of a SWOT (strengths, weaknesses, opportunities, and threats) analysis, and reveal potential emerging challenges to the business. To be successful, these challenges should be considered in advance, planned for with contingency plans, and if necessary, dealt with. Threats can take many different forms, and the business landscape needs to be examined and periodically reviewed, as threats can quickly appear, but can also disappear again with no ill effects just as quickly. Nevertheless, when they do not disappear they can cause havoc, and so here are some of the changes to the environment which can pose significant threats to a small business:
Adverse emerging trends, meaning that current customers will either not make use of your products and services, or they may decide to use you as a provider far less often New technological changes, which decrease the demand the product or service you provide. Totally new offerings by competitors, which make your products and service obsolete. Major changes in seemingly unrelated markets, which can eliminate the use of your products and services when they are not essential (or are no longer so) Unfavorable reviews by key independent reviewers Unfavorable alterations to current customer qualities (age, location, buying habits, etc.) which influence purchasing patterns Increased cost of raw materials, which then either increases the costs of your products or services (or reduces your profit margins) Other adverse changes in previously established customer desires, thoughts, whims, or habits Weak economic conditions in general Poor past performance by your firm (causing dissatisfied customers to seek out the competition) The discovery of undesirable side effects which have occurred to previous customers Newly unsatisfied customer desires, which your firm either does not recognize, or does not address adequately Undesirable alterations to the current legal environment, which now prohibit certain opportunities from being realized Problems or gaps in your firm's existing offerings, which are not realized or fixed Inappropriate pricing strategies, given competitor's offerings and market conditions Completely new desires by customers, which your firm neglects to meet More competition, as newer competitors enter the market, or other firms expand into your industry Competitors who discover expanded usage for their older products and services, which your firm cannot match Poor communication with shareholders, hostile takeover attempts, or other outside owner influence attempts Reductions in the number of offerings of products and services by your firm, especially profitable ones Charges of illegal action (price fixing, collusion, etc.) by regulatory and legal entities Reductions in the number of offerings of products and services by businesses which complement your own firm's products and services Patent, trademark, or copyright infringement claims by competitors Other changes which can make substitute goods and services more desirable than they were in the past Undesirable alterations to current contracts (with suppliers, customers, lenders or other key partners) Adverse changes to a supplier's agreement with you, or existing suppliers going out of business Poor business decisions Loss of key employees, or limits in the supplies of human capital who could benefit your firm Employee wrongdoing, or questionable ethical activities, which are later exposed Undesired changes to foreign markets where business is transacted, which can include some (or all) of the above Put differently, more threats exist when more of the above patterns are present. These should be duly considered before the attempt is made to launch a new venture, or even continue existing business operations. Even when a business environment includes many threats, a highly successful business can still be launched, however, significantly more skill is needed than when these threats are absent. Generally speaking, however, the businesses which respond the best to new threats in rapid, efficient, and effective manner are best positioned for future success.Copyright 2010, by Marc MaysMarc Mays is the creator of http://www.myplatinumparachute.com/, which helps first-time small business owners obtain the critical skills needed for their small business success. |
| Trackback url: https://article.abc-directory.com/article/7787 |