Situational/Competitive Analysis of the Company
Situational analysis is fundamental to the success of every business. It is a step in the marketing plan, which helps to cement relations with customers that will last. When it comes to Just Train Kids Company, a situational analysis will come in handy since the company is still in the growth and expansion stage. What competitive analysis does is that it helps to single out and assess the internal and external environment of a company. From the analysis, the company is better equipped to formulate strategies that will gear the company towards the achievement of the desired objectives. For instance, one of the purposes of Just Train Kids Company is to create more opportunities that will help raise awareness in the society.
Situational analysis is a benchmark for implementing strategic change. With a clear picture of what is at stake, a company can position itself with its competitors. Several strategies can be used to do a situational analysis. Among them, include the 5Cs Analysis, Porters Five Forces analysis model, and the SWOT analysis model. Out of the three mentioned strategies, SWOT analysis provides a more dynamic approach.
SWOT Analysis
According to Williams (2015), a SWOT analysis involves looking into the internal strengths and weaknesses of a company against the external threats and opportunities. In other words, the company learns to maximize on the internal strengths and external opportunities. It should also minimize the internal weaknesses and external threats. This balance is a necessary form of evaluation that is essential for every enterprise (Hill, 2012).
In this case, when Just Train Kids Company identifies the strengths and weaknesses, it will be better placed to understand its particular market niche. Identifying one’s market niche should be with the understanding that there is that one unique thing that will make a company stand out from the rest of its competitors. This uniqueness is what a company needs to identify and maximize on it. By Just Train Kids Company conducting a SWOT analysis, it will be able to weigh the factors for the expansion of the business.
Based on the finding of the analysis, the company will determine whether the factors at hand are worth pursuing. SWOT analysis is not limited to the company alone, but rather the firm should carry out SWOT analysis of its competitors as well (Williams, 2015). That way, the company will be a step ahead. In this analysis, the strengths and weaknesses are internal and the company can exercise some level of control over what happens in the enterprise. On the other hand, threats and opportunities are external, and the company has little or no influence over what happens.
Strengths
When considering the strengths, Just Train Kids Company needs to look at it from three perspectives, which are: that of the company itself, its clientele, and the market. With this broad perspective in mind, the organization can look at its strength from a definite point of view. One of the strengths of the company is that it provides opportunities where the children can learn ways of modifying behavior at their young age (Hill, 2012). Through these opportunities, some interactions and entertainments act as an excellent medium for reaching out. Entertainment especially when it comes to the kids is a sure way of capturing their attention. Given that these young minds are the target audience, it is possible to conclude that the company has identified a strength that guarantees long-term customer relations.
The other strength of the enterprise is the fact that its exclusive service is working towards the eradication of a hazard that affects many children in society today. This hazard is childhood obesity that has claimed the lives of many children through diseases such as heart attacks. Many children especially in America, struggle with obesity. The majority of the people will want to be partakers in this noble task of fighting against the effects of obesity. This objective qualifies to be the firm’s unique selling position (Hill, 2012). Creating awareness of the effects of obesity and ways to prevent it has the following effects: first, it will raise the reputation of the company and secondly the more widely it is known, the more chances are that it will expand. As a result, growth and expansion are guaranteed.
Weaknesses
Identifying a weakness calls for one to be true to themselves. That way, one can avoid uncertainties that may arise shortly. One major weakness of the enterprise is the lack of consistent cash flow. Planning all these events for the children and parents requires finances and given that the goal is to register the company as a non-profit brand, the movement of funds will prove to be quite an uphill task. Expanding its operations into new markets such as Northern California, Chicago, and Philadelphia is one of the aims of Just Train Kids Company. This kind of expansion necessitates the need of having a sufficient amount of cash flow.
Besides cash flow, tackling communication in the enterprise is another common weakness. Rather than going to the stakeholders only when there is a need, the business must come up with ways of being in constant communication. Stakeholders feel more appreciated and valued when they are involved and are made aware of whatever is going on in the enterprise. That way when something that needs their attention arises, the stakeholders will be ready to give their best to the course.
Opportunities
An opportunity is an external factor and as such, the company has no control over it. However, these forces have trends that a firm can emphasize to achieve the common good of the business (Pahl, 2009). Research must be carried out in the environment surrounding Just Train Kids Company to understand the forces in play. Given that the establishment of the subsidiary company was in 2014, the company has not had much time to expand, which makes expansion a viable opportunity to exploit. The new areas targeted for development include Northern California, Philadelphia, Detroit, and Chicago.
Besides the expansion aspect, involving celebrities is an exciting opportunity. Celebrities are always willing to take part in humanitarian work to boost their image and reputation. As a result, if the company reaches out to celebrities, they will in the process market the firm and raise more awareness. Reaching out to influential people in the society is thus one of the opportunities that the company can exploit. It is worth noting that the co-founder of the subsidiary Just Train Kids Company was a former player in the National Football League, thus he qualifies to be a celebrity. His image is a solid strength in reaching out to people. On the other hand, people will want to be associated with him thus bringing business to the enterprise.
Threats
In the current world, so many non-governmental organizations have come up in an attempt to address one issue or another. In this regard, the competition rate is greater today than it was in the past years. Just Train Kids Company will need to come up with plans and strategies that will make the company stand out from its competitors. Secondly, ignorance among the people is a key setback in the success of Just Train Kids Company. People do not give much attention to information passed on to them that is meant to create awareness. Despite this being a challenge, one can devise ways of reaching out to the target audience such that the message is catchy and irresistible (Pahl, 2009). One way of reaching to the target audience can be using entertainment and the use of success stories of people who have conquered this problem of obesity.
Conclusion
In conclusion, besides SWOT analysis is one of many strategies that a company can use in the process of situational analysis, can help to serve other purposes in the process of evaluation. One of the roles is that it acts as the benchmark in aiming to convert weaknesses and threats into strengths and opportunities that will benefit the company. Through the understanding of all of the four components, which are strengths, weaknesses, opportunities, and threats, the business is better equipped in strategy and policy formulation of the enterprise. It is prudent thus that a firm does the SWOT analysis occasionally.
Carrying out this analysis will keep the company at bay and a notch higher from the standard of the competitors. A SWOT analysis is a sure way to invent new solutions and a good foundation for making decisions when deciding the way forward.
References
Hill, C. (2012). Strategic Management: An Integrated Approach. Mason: CENGAGE Learning. Web.
Ommani, A. (2011). Strengths, Weaknesses, Opportunities and Threats (SWOT) Analysis for Farming System Businesses Management. African Journal of Business Management, Vol 5(22): pp. 9448-9454. Web.
Pahl, N. (2009). SWOT Analysis: Idea, Methodology and a Practical Approach. Munich: GRIN Verlag. Web.
William, C. (2015). Effective Management. Mason: CENGAGE Learning. Web.