Free essay on SWOT Analysis:
Based on the idea of “SWOT” analysis we can look at Bancroft’s dry cleaning in four aspects. First its strength, as this is a traditional family business and now into its 3rd generation it is relatively well know around the area of South Yarra which is one of the most wealthy suburb in Melbourne. One of the most obvious advantage of Bancroft is its location, it locates in South Yarra with the majority of the customers are wealthy therefore they don’t have to compete on price as much as other similar dry cleaning services in different areas. Also due to the demographic of the residents the demand for dry cleaning would be higher than most other suburbs, as professionals and business people requires a lot of attention to their clothing.
In this area one of the most important competency for a business to strive on is reputation for quality and Bancroft’s mainly focused on its level of service quality to maintain customer satisfaction. The business also tries to provide as much as service to the customers for their own convenience, in addition to dry cleaning it also offers repairs and alterations, as well as leather garment cleaning, wedding and formal gown cleaning. All this would add up to their strength as customers can fix their entire garment cleaning needs in one go. The variety of service is not matched by any other dry cleaning business in the area. The business also incorporates a computerized system to track transactions, orders and customer record all this would reduce waiting time and avoid confusion between customers and staffs; the end result is to improve efficiency. The staffs are also well trained with basic dry cleaning knowledge and can answer most of the customers enquire on the spot this also add to the level of service it provides.
For its weakness one of the most apparent one is that there is no parking space available for customers, and many customers are concerned with it every time they come in. Most of the time they just use the place in front of the shop which is a no parking area, and they often rushes into the shop and leave, this would add to their dissatisfaction and if they get a parking ticket then questions would arise for them to come back next time. Also within the operation of the business the lack of communication between managers and staffs can also has a negative impact on the efficiency of the business. As sometimes one manager asks one staff to do this task but another come in and ask the same staff to perform another task this would really confuse the staff hence increase the chance of mistake or waste of time. This lack of communication is also costly to the business as some mistakes are hard to fix e.g. misplace of clothing, and damage customers relationship with the business. Also the pricing is quite high and some customers have complained about this, as other businesses in the area provide cheaper alternatives so it has to work on other areas to keep customer loyalty.
There are also several potential threats facing Bancroft dry cleaning. Firstly threats from new entrants, if there is some other dry cleaning business set up a shop in somewhere close and provide similar level of service at a cheaper price then some of the customers would move to the other business without any doubt. In fact there is a Brown Gouge franchise dry cleaning service nearby however they are not providing similar service as to Bancroft but it is a potential threat if they are trying to occupy some of Bancroft’s market share. Also due to the limitations of resources the business also facing uncertainties, such as the breakdown of machines and absence of skilled labors. The breakdowns would result in loss time and production and if the skilled labor leaves then new staffs need training.
As for new opportunities there are several ways it can improve its service level. Firstly it could add home pick up and delivery service and this not only will fix the problem of shortage of parking space also it reduce customer’s time. Also because this is a relatively wealthy suburb therefore even though there will be a cost for the service but people would choose convenience over price. And the business should expand the function of its web site by creating customer accounts. This would allow customers to make a booking online for pick up, online payment, item tracking as well as feedback. All these can be done 24 hours a day and 7 days a week. Also because of the pick up and delivery service the business could expand into surrounding areas.
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