SWOT Analysis

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SWOT Analysis

Strengths
Monoply in local market
Proportion of variable cost in the total
cost is much higher
Opportunities
Summers are approaching
Can still sell 8000 coolers.

Weaknesses
Lost a good supplier
Lost all his savings in share market
Material input purchased from supplier
is the most important component of the
material cost, dependence on supplier
Threats
Sales are expected to fall by 20% on
account of expected weather
conditions
Threat of auction if loan not repaid
back
Seasonal fluctuations.

PEST
Economic Factors
1) Bank loans not available, money lender charging high rate of interest
2) Sales are likely to fall
3) Absence of suppliers

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