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SWOT #1

SWOT

Strength

Discounts

Proozy offers discounts to its clients to attract clients and make sales. An ecommerce website helps a company to reduce its cost and convert such money for attractive discounts. The discounts offered can assist the company to gain a substantial market share and gain company loyalty. Also, Proozy can get numerous referrals from their program as clients share the information on the cost of items with their relatives and friends.

Specialization

The company has specialized itself in the sale of high-quality brands for clothing and shoes. The company sells original Adidas and other recognizable brands. The client will prefer a company that sells one product than one that is a jack of all trades. Proozy prides itself in stocking items that have good quality under one roof.

Weakness

Cost

Proozy offers discounts to its customers making the product price to be cheaper than those found in traditional shops due to low operating costs. However, it has a high shipping cost for orders under $50. The high shipping expenditure can turn clients away and make them shift to a cheap traditional way of shopping. It is essential to standardize the shipping cost to ensure that the product price is appealing to the clients.

Client Mindset

A client can easily purchase items such as electronics from an online shop. However, there are clients who would prefer visiting the market and not to buy products online. Most clients would need to buy goods such as clothing through traditional methods rather than through the portals. The client needs to fit Proozy’s clothing and check the color before they purchase. Also, the company can experience many returns if they fail to adhere to instructions.

Opportunities

High Market Reach

Ecommerce has created a level playing field for even start-ups and small companies as it allows affordable access to the online population (Thakur, 2018). Also, the company has the capacity to reach the global market and sells its products beyond America. Proozy can sell their products and compete with giants brands such as Amazon through social media.

Threats

Highly Competitive Market

Cheap cost of developing an e-commerce portal enables people to create it increase the level of competition. Also, the low barriers to entry result in increased competition and reduction of both profit margins and prices. However, companies such as Amazon and eBay can advertise on different platforms to achieve target sales and profits. Thus, Proozy will have to compete with established brands to gain a substantial market share.

Digital Fraud

Clients will pay through an online payment structure such as PayPal. Fraudsters can easily penetrate the system and make away with the cash. There have been numerous instances where a client pays for an item, and they don’t receive the goods. Also, there are fraudsters who can steal financial information of clients and make away with their money. Therefore, the company should prepare it for such challenges.

References

Thakur, B. (2018). Analysis Of Business To Business E-Commerce. International Journal of Scientific Research and Management, 6(01).