SWOT

Analysis
Southeast racing parts(SRP) is a small auto parts brick and mortar mail Southeast
order organization based in North Carolina
Racing Parts
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Introduction:

Southeast Racing Parts is a small based auto parts brick and mortar and mail order
organization located in North Carolina. This company’s niche in the parts industry is working in
a centrally located area close to many of the top automotive teams in all forms of motorsports.
This market has been on the rise for the last five years with a 25% increase in population. A
recent survey has indicated that 385,000 people have competed in organized events while
more people have modified their cars to compete in these events. The products and services
offered will define us as an up and coming leader in customer service and exceptional delivery
to our clients and customers. We believe that an investment in SRP is a high growth, reasonable
risk opportunity.
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The auto parts industry historically has steady and reliable growth and profit margins. The
strengths of SRP are as follows. The company’s primary location in North Carolina will afford us
good visibility along with convenient access for traveling race teams wishing to stop and shop at
our store. Another advantage is the recent announcement to add a go-cart/entertainment
complex, which will be directly located across the street. Many new potential customers will be
attracted to our facility. Being located in Charlotte, SRP can enjoy a built-in customer base. The
recent explosion of NASCAR Sprint cup and nationwide series events in the last 15 years has
strengthened its role as the hub for most race teams and related businesses. We are currently
in the East Coast, which is centrally located. The Carolinas along with parts of Virginia and
Georgia will benefit from overnight UPS ground service. NASCAR racing is responsible for $200
million in expenditures annually. Many of the people employed in the industry along with their
children, relatives and friends take up racing as a hobby.
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The weaknesses for this company will be outlined in this section. First, the automotive business
can be volatile at times. The economy can make this industry which is largely dependent on the
automobile manufacturers being unreliable and difficult to predict. Since we are a mail-order
based company we will be subject to freight and shipping restrictions with fuel as our biggest
deterrent. The rise in fuel charges will take from our overall profit margin and overhead. We
will also be faced with the recent change in credit card purchases with the credit card reform
act being put into place. We will have to charge a surcharge to our customers to help offset
these additional charges that are passed on to us the supplier. Future competition can also be
considered a weakness as new and hungry start-ups will try and take a portion of the growing
market.
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SRP has several opportunities to build a strong customer base and solidify our place in the
market. New and exciting styles of racing are developed every year. Each new style represents
an opportunity to add customers to our organization. We will also have a chance to provide and
industry first technology which is based on computer generated graphs and vehicle upgrades
from any computer, cell phone or other electronic devise. A potential opportunity to expand
into other higher level motorsports is possible as our name and reputation increase.
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Every business plan should include possible threats and we will define them in this section.
Competition from large retailers can be considered a threat as their ability to purchase for
quantity can give them market power. Advertising tactics could threaten our business from a
negative standpoint. How will technology affect us in a positive way or a negative way? Can we
depend on the future of the sport and the media to continue our growth into the future of?
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Conclusion:

In conclusion, we at SRP have several strengths opposed to very few weaknesses. The
automotive industry while being sometimes unreliable and accustomed to peaks and valleys
can be seen as a strong point or our overall business plan. We will provide unmatched customer
service and the knowledge, expertise and drive to become the company our investors can be
proud of. People will know Southeast Racing Parts as the perfect place to get safe, reliable,
dependable and cost effective parts for their racing and personal needs.
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Racing. Will the taste of our customers change to portray us in a negative light?
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