Is your sari store performing as well as you’d like? If not, it may be time to complete a SWOT analysis of the sari sari store to determine what’s going wrong. In this article, we’ll take a closer look at what SWOT is and how you can use it to improve your store’s fortunes. So, let’s get started!
What Is Sari Sari Store?
A sari-sari store is a type of small, neighborhood convenience store found in the Philippines. Sari-sari stores are typically family-run businesses and are common in Filipino neighborhoods. The business model of a sari-sari store is typical to provide convenience to customers by being located close to their homes. Sari-sari stores usually sell various products, including food, beverages, cigarettes, and household items.
Related: How to Register Your Business as Barangay Micro Business Enterprise (BMBEs)
What Is a SWOT Analysis?
A SWOT analysis is a tool that you can use to assess a company’s strengths, weaknesses, opportunities, and threats.
This SWOT analysis aims to take a closer look at the sari-sari store business and see if it is a viable option for entrepreneurs.
Strengths
Convenient for customers: Sari-sari stores are typically located close to customers’ homes, making them a suitable option.
Family-run businesses: Sari-sari stores are often family-run businesses, providing a more personal touch to customers.
Variety of products: Sari-sari stores usually sell various products, including food, beverages, cigarettes, and household items.
Customer Service: Sari-sari stores typically offer good customer service, as they are often family-run businesses.
Flexible payment options: In addtiion, sari-sari stores usually offer flexible payment options, such as credit or installments.
Clean and Organized Space: Sari-sari stores typically have a clean and organized space.
Weaknesses
Small Businesses: Sari-sari stores are often small businesses, which can limit their growth potential.
Family-run Businesses: Family-run businesses can provide a more personal touch to customers but can also lead to nepotism and favoritism.
Inconsistent quality: The quality of products sold in sari-sari stores can be unpredictable, as they often source from different suppliers.
High Competition: There is high competition in the sari-sari store industry, as many small businesses are vying for customers.
Opportunities
Location: The Philippines is a populous country with a high density of people living in urban areas. This provides opportunities for sari-sari stores to be located close to potential customers.
Necessity Goods: Sari-sari stores typically sell necessity goods, which are items that people need daily. This provides a steady stream of customers for the business.
No Employer: Sari-sari stores do not require employees, as they are typically family-run businesses. This reduces costs and makes the company more profitable.
Enhance Mathematical Skills: Owning a sari-sari store can enhance mathematical skills, as companies must keep track of inventory and sales.
Threats
Theft: One of the biggest threats to sari-sari stores is theft, as many items are small and easy to take.
Burglary: Another threat to sari-sari stores is burglary, as the businesses typically keep cash on hand.
Natural Disasters: Sari-sari stores in the Philippines are also vulnerable to natural disasters like typhoons and earthquakes.
Competition: As mentioned, competition is high in the sari-sari store industry, as many small businesses are vying for customers.
Economic Condition: The financial condition of the Philippines can also impact sari-sari stores, as people may have less money to spend on items.
FAQs SWOT Analysis of Sari Sari Store
What are some of the products sold in a sari-sari store?
Sari-sari stores typically sell food, beverages, cigarettes, and household items.
Related: Carinderia Business: What You Need to Know
What are some of the benefits of owning a sari-sari store?
Some benefits of owning a sari-sari store include the convenient location, variety of products, and flexible payment options.
What are some of the threats to sari-sari stores?
Some threats to sari-sari stores include theft, burglary, natural disasters, and competition.
Conclusion
Therefore,SWOT analysis of sari-sari stores in the Philippines shows that this type of business has both opportunities and threats. Some key strengths of sari-sari stores include their convenient location, variety of products, and flexible payment options. However, some weaknesses include small size, inconsistent quality, and high competition. Also, when considering all factors, owning a sari-sari store could be a viable option for entrepreneurs in the Philippines.
Recommended: How to Start Sari sari Store in the Philippines?
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