SWOT Analysis - Example - Sungen Ltd

Strengths:

• Solar equipment is a niche market in Australia.
• JIT(Just In Time) production method and hence minimum risk.
• Sungen Ltd estimates it has 65 % of the market.
• Desirable product range.
• Products produced per customers’ specification.
• Eco-friendly company image.
• Strong sales growth.
• Departmental specialists to carry out the specialist functions.

Weaknesses:

• Unreliable suppliers.
• Demotivated employees.
• Conflicting management styles (Catherine & Tony)
• Unclear leadership.
• Delayed delivery.
• Weak financial situation (Negative gross profit margin, net profit margin and ROCE)
• Little working capital.
• Quality problems.
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Opportunities:

• Potential High market growth.
• Weak distribution channels.
• Market research says that 45 % of those questioned would consider fitting some sort of renewable energy generation system.
• Opportunity to enter new market segment.
• If the government accepts Sungen Ltd proposals (lines 88-90), it may lead to good business opportunity.
• Increasing consumers’ awareness (Global warming and rising energy prices)

Threats:
• Trade union is threatening strike action.
• Unstable state of economy.
• Housing prices are set to fall.
• Increasing inflation and decreasing GDP