SWOT Analysis of Shellys Business - Case Study Example

? Case Analysis Table of Contents Background 3 Situation Analysis 4 SWOT Analysis of Shelly’s business 4 Analysis of Alternatives 5 Purchasing Shelly’s Business 6 Starting a business from scratch 7 Opening a franchise 8 Recommendations 9 Conclusion 9 Works cited 10 Name of student: Name of Professor: Course Number: Date of Paper: Case Analysis: Conrad’s Photographer’s Supplies Background “Professional photography is a highly competitive market, but you can help yourself stand out in a crowded space by knowing your craft and gaining the right experience” (“Life through a Lens: How to Start a Successful Photography Business”). Thus, it is true for the people who want to live their dreams and want to rule their own creative world. Clicking few pictures are a negligible part of a photographer’s life, professionalism comes with the thought of creating their own business. There are numerous aspects that need to be addressed when one is looking for setting a successful photography business. It forms a highly competitive market where every individual can own a camera and call themselves photographers. However, it depends on the credibility and acumen of the individual to make themselves different from the others (“Life through a Lens: How to Start a Successful Photography Business”). Conrad’s Photographer’s Supplies is situated in north end of Winnipeg in Canada. The owner of the business, Shelly Conrad is a photographer who has the desire to devote her time to professional photography by selling the business to the Bingley couple. Since the beginning of the business an ago, the owner has received positive response from the market and hence her business was doing well. However, the owner is much eager to lead her professional life as a photographer rather than a business woman. So, she is interested in selling the business to the couple. Richard and Karen Conrad are much interested in going into photography business since it is related to their hobby. SWOT analysis is done in order to identify the current situation of the business which will help the couple to make a positive decision. A comparison is drawn in this case to evaluate the different alternatives of the methods of setting up a business. It is done to identify whether the couple will be profitable and successful in purchasing Shelly’s business, starting a new business or opening a franchise. Situation Analysis Shelly’s photography business has been doing well in the Canadian market since inception. Irrespective of that the owner is eager to sell the business so that she can continue her career as a professional photographer. She is willing to sell the business to Bingleys, who are interested to start a photography business. The Bingleys are quite impressed with the operation of Shelly’s business. They are happy with the type of equipments and fixtures that are owned by Shelly. But a SWOT analysis of the business will help the Bingleys to take the decision of purchasing the business from Shelly effectively. SWOT Analysis of Shelly’s business SWOT analysis is conducted in order to identify the state of the business. Strength The main strength of Conrad’s Photographer’s Supplies is the customer base. Shelly, the owner of the business has maintained a good relation with the customers so they naturally trust her with their photographs. The business has got well acquainted in the community. Weakness The main weakness of the business is that it is taking much more time to run than expected by the owner. Thus, the business needs new improved ways for attracting customers. The business is operating from a shop which is taken in lease for three years. After the purchase of the business, if it fails to perform then the burden of the lease will be a problem for the Bingleys. Opportunity More and more people are getting into the photography profession which is making it more competitive with time. With the inception of digital cameras, the industry is expanding at a remarkable rate. Thus, there is opportunity for Conrad’s Photographer’s Supplies to sustain in the market and earn profit to a great extent by exploiting the new opportunities. Threat The market has become competitive as more and more people are taking up photography as their profession and later, opening their own business. The increasing level of competition is a threat for the Bingleys. Analysis of Alternatives The Bingleys want to start a photography business since it is related to their hobby and they are ready to purchase the business from Shelly as well. However, there are other alternatives apart from purchasing the business i.e. starting their own business from the scratch and opening a franchise. In both the cases, they will be facing some advantages and limitations which will guide them to take the right decision. In this section of the case, the two alternatives are compared with the purchasing plan of Shelly’s business to evaluate which option is appropriate for them. Purchasing Shelly’s Business If the Bingleys are deciding to purchase Shelly’s business, then they can experience the following advantages and disadvantages: Advantages 1) The Bingleys will be receiving the details of the customers of Shelly. That will help them to get hold of all the necessary information that is required for running the photography business. Thus, it will assist the couple in maintaining the same stature of the business which had been created by Shelly. 2) Shelly has developed a strong customer base in one year and has maintained a good relationship with them and the suppliers. Shelly has made the business well acquainted with the community by spreading its business information to every corner of Winnipeg inspite of operating from a small shop. Thus, the good reputation of the business will help the couple to expand it more successfully. Disadvantages 1) The main disadvantage of this method is that there is no freedom of structuring one’s own business like the way he wants. It is because the previous owner has already made a structure for the business. Thus, if Bingleys are purchasing Shelly’s business, then they would have to follow the structure that was already formed by Shelly and cannot induce any creative method in it fearing negative customer response. 2) There is always a risk associated with the purchase of an existing business. If the previous owner has a bad reputation in the market, then the new owner will face difficulty in running the business. Then again in this case, if Bingleys do purchase Shelly’s business, then they can face difficulty as Shelly might have a bad business history. However, it is seen in the case that Shelly has a good reputation in the market and has maintained a cordial relationship with her customers. Starting a business from scratch If the Bingleys decide to start the photography business from scratch, then they can experience the following advantages and disadvantages: Advantages 1) The main advantage of this method is that there is full independence of structuring your business. The owner is the master of his own business and do not have to take into account the principles that are set by the previous owners like in the case of buying an existing business. They can exercise their own practices and create rules and standards as per their wish. They can design their own business by seeking innovation. Thus, if the Bingleys decide to create their own business, then they can have the full freedom to frame it as per their convenience. 2) For starting a business from the scratch, owners have to conduct a serious market research which will give them information about the market in which they are setting up their venture. Thus, if the Bingleys start their business from the scratch, they will have to conduct the market study all by themselves. These will help them in understanding the market minutely and help them in developing their business so as to facilitate sustenance in the prevailing market (Cleaver 189). Disadvantages 1) When Bingleys are starting their business from scratch, they have to bear the risk of failure. As there is no built up reputation for their business, people may not recognize or accept them. Thus, they can lose the money that they have invested in starting up the business (Waters 40). Therefore, it is very risky to start up a business from the scratch where there is an uncertainty of success. Opening a franchise If the Bingleys are deciding to open a franchise, then they can experience the following advantages and disadvantages: Advantages 1) The franchisors provide training and development programs to the franchisees, so that they can establish their business successfully. They even provide the franchisees with the necessary information that are required for the daily operation of the franchise. If Bingleys are operating the franchise, then they will receive all the information required from Shelly, the franchisor. Shelly will provide them with all the business tactics and train them to locate the valuable customers and gain their trust (Barringer 81). Disadvantages 1) The main risk of opening a franchise is that if the business is encountering loss, then the franchisee needs to be answerable to the franchiser, as the reputation of the franchisor comes to stake. Thus, if the Bingleys are going into a contractual agreement with Shelly and open a franchise, then they have to provide justification in case of failure (Morris 164). 2) In these method, there is no independence of the franchisee to take any emphatic decision as the franchisor is the actual owner of the business. Thus, Bingleys will have no authority to take any decision for restructuring or improving the business if they are going into the contractual agreement with Shelly (Pinson and Jinnett 45). Thus, it can be portrayed that if the Bingleys are eager to start a business through one of the above mentioned ways, they has to face some limitations. By comparing the three, it can be said that the Bingleys will be successful if they start a new business on their own. Recommendations It can be recommended that instead of purchasing Shelly’s business, Bingley can plan for setting up their own business from scratch as it will be more profitable for them. Shelly’s business does not have enough cash in hand. Thus, during any emergency, the business will not be provided with financial support. So, it is suggested that the Bingleys should set up a new business. Conclusion Thus, it is seen that photography business is booming well in the Canadian market which has helped Shelly to establish a successful business. Shelly has formed an appreciable customer base but due to lack of interest in business and the desire to continue her career as a photographer, she is eager to sell the business to Bingleys. It is recommended that the couple must start a new business so that they can successfully fulfill their desire for a new venture. Works cited Barringer, Bruce. The Truth about Starting a Business. New Jersey: Pearson Education, 2009. Print. Cleaver, Joanne. Starting a Business. New York: Barnes & Nobel Inc., 2003. Print. “Life Through a Lens: How to Start a Successful Photography Business.” Guardian News and Media Limited. The Guardian, 2013. Web. 26 Jun. 2013. Morris, Michael. Starting a Successful Business: Start Up and Grow Your Own Company. London: Kogan Page, 2008. Print. Pinson, Linda and Jerry Jinnett. Steps to Small Business Start-Up. New Jersey: Kaplan Publishing, 2006. Print. Waters, Mary. Guide to Starting a Business. Bloomington: Author House, 2012. Print. Read More