SWOT Analysis of FirstTouch Soccer Academy - Case Study Example

Heading: Strategic Plan II SWOTT Analysis of FirstTouch Soccer Academy Your name: Course name: Professors’ name: Date Introduction This paper analyses both the external and internal environment of FirstTouch soccer academy in order to determine the extent of effect that these factors have to the business. SWOT analysis is done through a discussion group in order to foster understanding of different factors affecting the business. The other essential considerations discussed in this paper includes the major objectives of the business, major issues facing the business and a proposed hypothesis through research questions on ways to address the issues. External forces and trends Legal and regulatory The business will ensure that it is registered with local Football Association (FA) and pay both insurance and taxes to ensure that it is able to carry out its activities without interfering with the legal system governing football in the state. The name of the business FirstTouch soccer academy will also be registered in order to secure the name. Some of the other regulatory expense that it will ensure to meet includes jersey fees, league fees, and field equipments for practising and salaries for the staff. Economic The external environment favours business start-up since the country’s economic status is conducive and even encouraging for small businesses. The major challenges that FirstTouch soccer academy will face is the source of funds to commence the business. The options available include, admission fees, loans, government funding and so forth. Competitive analysis In order to fully appreciate the competitor’s position which is critical for FirstTouch soccer Academy, it is important to utilize porter’s framework to establish the competitor’s entire profile. To achieve this, the following aspects will be c considered in the framework. One competitor which is Ribet Academy Football in Los Angeles is thus taken to analyse these factors comprehensively. Objectives of the competitor The objectives of Ribet Academy Football are to recruit many students to the school system and promote their aspirations by offering them many competitive games while giving them studying opportunities. Assumptions of the competitor Ribet Academy Football believes that it is one of the biggest soccer academies in Los Angeles and it also believes that is has the highest potential as compared to its rivals. Strategy of the competitor Ribet Academy Football tries to use its focus on educational curriculum and its effective sporting activities to attract many admissions from outside the region. Capabilities of the competitor Ribet Academy Football is strong financially and also with its active sporting activities, it has the potential of attracting even more admissions from the region. Internal forces and trends Strategy FirstTouch soccer academy will use market sensitivity through competitive analysis and SWOT analysis to anticipate any market change or needful organizational change. This will always make the academy ready for change through a planed anticipation strategy. Like any business, change is inevitable despite the potential relaxation of the company’s employees. FirstTouch soccer academy will thus optimize on staff training on the need to undergo an inevitable change as well as to constantly appreciate change as part of business. Continuous employee training will foster readiness for change. The major emphasis that FirstTouch soccer academy will maintain includes self assessment, staying optimistic and awareness of the change in order to mitigate stiffness. Structures FirstTouch soccer academy internal structure is aligned and focused to the visions and the missions of the business. Since FirstTouch soccer academy offers services to youngsters of ages 7-15, its supply chain is more focused on the service delivery which is created by concrete and competent staff mandated the task of nurturing young talents. Quality assurance is thus imperative and core to the organization’s supply chain. This is because of the fundamental fact that quality services increases the demands of the service and thus market growth. Strategic capabilities There are three major issues that the academy faces and they are market opportunities, financial sources and enhancing organizational sustainability. There are however a number of opportunities at the disposal of the academy. Some of these opportunities are its strong internal structure which is focused and thus in a position to grasp any market opportunity that presents itself. FirstTouch soccer academy also relies on its capability to adapt to change as a critical tool of increasing its opportunities in the market as compared with its competitors such as Ribet Academy Football. FirstTouch soccer academy ensures that it assesses its competitor’s capabilities, strategies, assumptions and objectives through a competitive profile management (Nieuwenhuizen, 2009). Technologies FirstTouch soccer academy will optimize on technological advancement to promote the visions and the missions of the academy in order to attract more admissions within and outside Los Angeles. In doing so, FirstTouch soccer academy will specifically use the academy’s website to focus the attention of the visitors to the academy’s services and their benefits. The academy will also optimize on technology in terms of fostering its distribution channel and acquiring of more resources for the academy. Technology providers a shopping place as well as market place. This makes it possible for the academy to acquire its resources like quality Jerseys and other football equipment from distant companies. The academy will at the same time acquire its funding by promotion of its visions and missions. Major issues that FirstTouch Soccer Academy faces The major issues that FirstTouch soccer academy faces as it tries to penetrate through the market includes; acquiring substantial market niche, financing its activities and ensuring its sustainability in the market. All businesses aspire to acquire maximum marker share in their niche, FirstTouch soccer academy too needs to ensure that this is the case by acquiring a substantial admissions of many soccer students within and outside Los Angeles. Incorporating the right strategies will be imperative for the academy in its aspiration of increasing market share. The other major issue that the business faces is financial strength, this is important because the academy cannot run without sufficient funds. It will thus seek for funding from the state government as well as selling its shares through it visions and missions in order to acquire sponsors (Ghuman, 2010). The third and also vital issue that the academy faces is sustainability in its market change. The academy will try to ensure that it is sustainable in its niche through strategies that focuses on better ways of adapting to change as well as working to improve its quality of service delivery with the aim of ensuring that its market is sustainable after acquisition. Opportunities of FirstTouch Soccer Academy FirstTouch soccer academy has an opportunity of increasing its market share especially considering the fact that it concentrates of soccer as its primary sporting game. Focusing on one particular activity will increase the quality and thus the market of the academy in the field of soccer. The other opportunity that FirstTouch soccer academy has is its internal structure consisting of strong, focused and ready to change staff well positioned to grasp any market opportunity that presents itself (Bryson ,2004). The strong economical financial status in the world also presents increased opportunities as a result of increased consumer spending as compared to the recent period which had plunged the country into financial crisis. Hypothesis of issues and research question Research question Achieving substantial market niche i. Will both traditional and modern marketing strategies increase the market scope FirstTouch soccer academy? ii. Which marketing strategies will instantly have profound effects on the market niche? Financing its activities i. Will the government funding and admission fees be adequate in increasing financial situation for the business? ii. Should the business consider selling its ownership shares to increase its capital? Ensuring sustainability i. Will increasing the quality of service that the academy offer helps in creating a substantial market niche? ii. Is creating a strong and focused internal structure important in enhancing sustainability? Hypothesis Achieving substantial market niche i. Both traditional and modern marketing strategies will be vital in increasing the market scope of FirstTouch soccer academy. ii. All marketing strategies will have profound effects on increasing market scope of FirstTouch soccer academy. Financing its activities i. Government funding and admission fees will not be adequate in increasing the business financial status. ii. The business should consider selling its ownership to the public in order to attract more capital. Ensuring sustainability i. A sustainable market niche can be achieved by increasing the quality of services that FirstTouch soccer academy offers. ii. Creating strong and focused internal structure important in enhancing sustainability of FirstTouch soccer academy. Circumstances surrounding each issue The circumstances surrounding achieving substantial market includes; the already established competitors in the market, the barriers to market entry and identification of market opportunities. These circumstances can thus be classified as important. The circumstances surrounding financing its activities includes; the low capital strength, the few options to raise more capital and many financial needs by the business. These circumstances can thus be classified as very important. On the other hand, the circumstances surrounding how to ensure market sustainability includes; venturing into a new market, strategies to implement and market changes. These circumstances can thus be classified as important. The testing of the accuracy of each classification is as shown in the table below Issue Classification of the circumstance Accuracy of the attribute Achieving substantial market niche Important It is imperative for the business to acquire substantial market share in order to break-even and make returns on investments to the stakeholders Financing its activities Very Important This is very critical since the business cannot start offering its service in the market if it lacks adequate financial status. Ensuring market sustainability Important This is important because, for a business to survive, it must ensure that it can withstand market changes, implement new strategies and adopt changes. References Bryson , J.M. (2004). Strategic planning for public and nonprofit organizations: a guide to strengthening and sustaining organizational achievement. New York, NY: John Wiley and Sons. Ghuman, K.(2010). Management: Concepts, Practice & Cases. Michigan, MA: Tata McGraw-Hill Education. Nieuwenhuizen, C., & Rossouw, D.(2009). Business Management: A Contemporary Approach. New York, NY: Juta and Company Ltd. SWOT Table External forces and trends considerations: Legal and regulatory Strength The business complies with all regulations Weakness The high cost of meeting the regulations Threat Increasing legal regulations may hamper the business Opportunity Future legal requirements may be adjusted to encourage soccer in U.S. Global Strength The financial stability of the business may improve its global presence Weakness The cost of reaching global position is high Threat Global competition from other soccer Academies in Europe Opportunity Global presence may be achieved by increased sponsorship. Economic Strength The country’s economy is sound and hence conducive for business Weakness Unforeseen global changes may limit business prosperity Threat Global financial crisis may increase competitors strength Opportunity There are signs of economic improvement in the world Technological Strength The business has a competent technological background Weakness Usage of technology increases expenses Threat There are loopholes that competitors may exploit in technologies Opportunity Increased technologies increases market scope Innovation Strength The business has innovative human resource Weakness The cost of innovation is high Threat Other firms innovations threaten the business market Opportunity Innovative human resources increases the market scope Social Strength The business aligns with the social atmosphere Weakness Increased social activities increases costs Threat Increased social participations increases the number of competitors Opportunity Social activities increases business image Environmental Strength The environment is conducive for business Weakness Environment issues increases cost of doing business Threat The environment also increases competitors Opportunity The conducive environment increases the number of market niches. Competitive analysis Strength The competitive analysis helps in creating strong strategies Weakness competitive analysis is costly to the business Threat competitive analysis shows an increase in number of competitors Opportunity The competitive analysis shows market gaps Internal forces and trends considerations: Strategy Strength The business strategy focuses on long-term benefits Weakness Formulation of strategy is based on assumed factors Threat Wrong strategy leads to increased competitors Opportunity Good strategy leads to increased market niches Structures Strength Strong internal structure shows strong business Weakness Weak internal strategy increases vulnerability Threat Weak strategy gives competitors an upper hand Opportunity Strong strategy increases opportunities in the market Processes and systems Strength Creates a strong and workable business Weakness Weak processes and systems increase cost of doing business Threat Weak processes and systems increases competitors options Opportunity Well aligned processes and systems increase market opportunities Resources Strength The business has many resource and hence stronger in the market Weakness Marketing increases resource depletion Threat Resource depletion gives competitors more room. Opportunity The business has resources important in increasing marketing opportunities. Goals Strength Weakness Threat Opportunity Strategic capabilities Strength The business has sound strategic capabilities that increases its strategic position Weakness Weak strategies may result in market failure Threat Weak strategies may result in competitor exploitation Opportunity Strategic capabilities increases market opportunities Culture Strength The business has a sound culture fostered by its visions and missions Weakness Culture may result in conflict of interest in the market Threat Culture may be obstacle to change and hence giving competitor an advantage. Opportunity Sound culture increases market opportunities Technologies Strength The business has a competent technological background Weakness Usage of technology increases expenses Threat There are loopholes that competitors may exploit in technologies Opportunity Increased technologies increases market scope Read More