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180 PART 2 • STRATEGY FORMULATION
FIGURE 6-3
A SWOT Matrix for a Retail Computer Store
Strengths Weaknesses
1. Inventory turnover up 5.8 to 6.7 1. Software revenues in store
down 12%
2. Average customer purchase 2. Location of store hurt by new
up $97 to $128 Hwy 34
3. Employee morale is excellent 3. Carpet and paint in store
in disrepair
4. In-store promotions = 20% 4. Bathroom in store needs
increase in sales refurbishing
5. Newspaper advertising 5. Total store revenues down 8%
expenditures down 10%
6. Revenues from repair/service 6. Store has no Web site
in-store up 16%
7. In-store technical support 7. Supplier on-time-delivery up to
persons have MIS degrees 2.4 days
8. Store’s debt-to-total assets ratio 8. Customer checkout process
down 34% too slow
9. Revenues per employee
up 19%
Opportunities SO Strategies WO Strategies
1. Population of city growing 10% 1. Add 4 new in-store promotions 1. Purchase land to build new
monthly (S4,O3) store (W2, O2)
2. Rival computer store opening 2. Add 2 new repair/service 2. Install new carpet/paint/bath
1 mile away persons (S6, O5) (W3, W4, O1)
3. Vehicle traffic passing store up 12% 3. Send flyer to all seniors over 3. Up Web site services by 50%
age 55 (S5, O5) (W6, O7, O8)
4. Vendors average six new products/yr 4. Launch mailout to all
Realtors in city (W5, O7)
5. Senior citizen use of computers
up 8%
6. Small business growth in area up 10%
7. Desire for Web sites up 18%
by Realtors
8. Desire for Web sites up 12%
by small firms
Threats ST Strategies WT Strategies
1. Best Buy opening new store 1. Hire two more repair persons 1. Hire 2 new cashiers
in 1yr nearby and market these new services (W8, T1, T4)
(S6, S7, T1)
2. Local university offers computer 2. Purchase land to build new 2. Install new carpet/paint/
repair store (S8, T3) bath (W3, W4, T1)
3. New bypass Hwy 34 in 1 yr will 3. Raise out-of-store service calls
divert traffic from $60 to $80 (S6, T5)
4. New mall being built nearby
5. Gas prices up 14%
6. Vendors raising prices 8%
