Establishing a skydiving business can be expensive because the start-up kits and the private planes are truly expensive, and also maintenance cost and even fuelling can also be expensive as well. Licensing and permits can also be very expensive.
Because we want to become the leader in our line of business, Silver Line® Sky Dive Group, Inc. engaged the services of a core professional in the area of business consulting and structuring to assist our organization in building a well – structured skydiving business that can favorably compete in the highly competitive Skydiving industry in the United States.
Part of what the business consultant did was to work with the management of our organization in conducting a comprehensive SWOT analysis for Silver Line® Sky Dive Group, Inc. Here is a summary of the SWOT analysis that was conducted on behalf of Silver Line® Sky Dive Group, Inc.;
Table of Content
A Sample SWOT Analysis Template
1. Economic Analysis
Skydiving is performed as a recreational activity and a competitive sport. It’s widely considered an extreme sport due to the risks involved. In 2018, there were 3.3 million jumps in the US. Skydiving can be practiced without jumping. Vertical wind tunnels are used to practice for free fall (“indoor skydiving” or “bodyflight”), while virtual reality parachute simulators are used to practice parachute control.
A recent report published shows that over the five years to 2021, the Skydiving industry has experienced moderate growth. Industry revenue has increased at an annualized rate of 2.9 percent to reach $371.1 million, including an anticipated 2.4 percent rise in 2018 alone. During the five-year period, the industry recovered from a sharp decline that began with the 2008 recession and bottomed out in 2009.
Falling per capita disposable income and poor national economic performance forced consumers and businesses to reduce recreational services such as skydiving. So also, within the said period, the Skydiving industry has grown by 2.9 percent to reach revenue of $371m in 2018. In the same time frame, the number of businesses has grown by 0.8 percent and the number of employees has grown by 1.5 percent.
We can boast of having some of the latest skydiving safety equipment and of course experienced tandem skydivers under our payroll. Our services will be guided by international best practices. Another strength that counts for us in the location of our skydiving business; it is located in one of the most ideal locations for such business in Honolulu – Hawaii.
As a new skydiving business in Honolulu – Hawaii, it might take some time for our skydiving company to break into the market and gain acceptance especially from top profile clients in the fast – growing industry; that is perhaps our major weakness.
Another weakness is that we may not have the required cash to purchase our aircraft for now and also to pump into promoting our business the way we would want to especially as it relates to placing adverts in mainstream media.
The opportunities in the skydiving business are massive considering the number of residents and tourists who would want to skydive either for fun or sport. As a skydiving company, we are ready to take advantage of any opportunity that is available in the industry.
Just like any other business, one of the major threats that we are likely going to face is economic downturn. It is a fact that economic downturn affects purchasing / spending power especially as it relates to recreational activities such as skydiving. Another threat that may likely confront us is the arrival of a new skydiving company in same location where our target market exists and who may want to adopt same business model like us.