Swot Analysis - Auto Parts Store

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Auto Parts Store Business Plan Analysis July 18, 2010 Southeast Racing Parts (SRP) is a proposed specialty auto parts retailer focusing on the amateur car racing set. SRP is an imaginative business venture with a positive prospect for growth and expansion. The business plan demonstrates a majority of strengths and opportunities with only a minimum of discernable weaknesses and threats. Most of the potential negatives in this business plan are small, manageable, and can be overcome. After careful analysis, it appears that SRP is a good business risk with the potential for significant success. One of the most important opportunities for SRP is its proximity to its customers—both physically and idealistically. The husband and wife team…show more content…
The Internet provides an excellent opportunity to create brand awareness and should not be overlooked as a key selling tool for the own-brand parts as well as their other products. Although there are respectable margins in many of the types of products that SRP is looking to sell, the initial investment is likely to be high. Quality race parts are expensive, and due to the fact that there are numerous applications for parts and accessories, SRP will be required to create a substantial inventory from the beginning. A large variety of makes, models, years, and custom jobs means many different parts to serve the same purpose. Parts also quickly become obsolete, so there will need to be a plan in place to get rid of unsellable merchandise by returning it to the distributor or manufacturer, or selling to another vendor. Either way, a better plan must be in place for purchasing and managing inventory to mitigate this potentially costly threat that was not addressed in the business plan. SRP did address the fact that they have established solid relationships with numerous vendors who are willing to offer incentives and deals to get the new business off the ground. Of course doing this will be advantageous to the manufacturers and distributors in the long run, because if SRP does well, they will grow and order more from the vendors. Large vendors are not always willing to extend

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