Are you about writing a soap making business plan? If YES, here is a sample SWOT analysis for a soap making company to help you form a competitive strategy.
Soap Making Business Plan – Economic Analysis
The Soap and Cleaning Compound Manufacturing industry is in the mature stage of its economic life cycle. Revenue growth is slowing, product innovation is moderate and the number of industry establishments is declining. During the 10 years to 2021, industry value added (IVA), which measures the industry’s contribution to the economy, is expected to increase at an annualized rate of 0.2%.
GDP is anticipated to increase at an annualized rate of 2.3%. Although IVA growth is expected to be significantly slower than that of the overall economy, most of this decline is due to dropping industry wages. The industry itself exhibits many characteristics of a mature industry.
A Sample Soap Making Business Plan SWOT Analysis
We are quite aware that there are several soap production companies both large and small in America, whose products can be found in every nooks and crannies of the country, which is why we are following the due process of establishing a business so as to compete favorable with them.
We know that if a proper SWOT analysis is conducted for our business, we will be able to position our business to maximize our strength, leverage on the opportunities that will be available to us, mitigate our risks and be welled equipped to confront our threats.
Cites® Soap Production Company employed the services of an expert HR and Business Analyst with bias in start – up business to help us conduct a thorough SWOT analysis and to help us create a business model that will help us achieve our business goals and objectives. This is the summary of the SWOT analysis that was conducted for Cites® Soap Production Company;
Aside from quality and variety of soaps and detergents that we make, part of what is going to count as positives for Cites® Soap Production Company is the vast experience of our management team, we have people on board who are highly experienced and understands how to grow business from the scratch to becoming a national phenomenon.
So also our large national distribution network and of course our excellent customer service culture will definitely count as a strong strength for the business.
A major weakness that may count against us is the fact that we are a new soap production company and we don’t have the financial capacity to engage in the kind of publicity that we intend giving the business.
The opportunities for soap production companies are enormous. This is due to the fact that soap is a universal product that can be found in all homes, canteen, laundries, hotels and toilets et al.
As a result of that, we were able to conduct a thorough market survey and feasibility studies so as to position our business to take advantage of the existing market for soaps and detergents and also to create our own new market. We know that it is going to requires hard work, and we are ready to give all it will take to achieve it.
We are quite aware that just like any other business, one of the major threats that we are likely going to face is economic downturn and unfavorable government policies. It is a fact that economic downturn affects purchasing power. Another threat that may likely confront us is the arrival of a new soap production company in same location where ours is located.