Recommendations for a Business Competing with Amazon

Wish You Wood

SWOT Analysis

Strengths

Wish You Wood has several strengths, including its unique and high-quality wooden toys that are personally selected by the store owners. The store is also located in a resort town near Piney Lake, which attracts visitors who associate the store with family and fun. Additionally, Wish You Wood has an established loyal customer base. It is good at keeping customers coming back.

Weaknesses

Despite these strengths, the store has several weaknesses. Wish You Wood's growth has been limited due to its reliance on vacationers and in-store sales, as well as unimpressive online traffic to the store's website. The small size of the business also limits the ability to negotiate better prices from suppliers. When it comes to getting the supplies it needs, it does not have much purchasing power.

Threats

The store also faces threats, including competition from other toy retailers, including direct competition with Amazon for sales. Amazon has put many brick-and-mortar businesses out of business. Plus, fluctuating demand for wooden toys due to changes in consumer preferences and economic conditions is also a threat that the store must consider.

Opportunities

There are numerous opportunities for the store, such as expanding into online sales through partnerships with Amazon and diversifying its toy offerings to attract a wider range of customers.

Overall, the SWOT analysis shows that Wish You Wood has a strong foundation with unique and high-quality products and an established customer base. However, the store's reliance on in-store sales and limited ability to negotiate better prices from suppliers are weaknesses. The partnership with Amazon presents an opportunity for expansion into online sales, but also creates competition from the same partner. To address these issues, Wish You Wood may need to diversify its toy offerings and consider adjusting its pricing strategy or negotiating with suppliers.

General Corporate Strategy Recommendation

Based on the SWOT analysis, I would recommend that Wish You Wood adopt a diversification strategy to reduce its dependence on Amazon and vacationers. This strategy involves expanding the product line to include other types of toys that appeal to a wider customer base beyond vacationers. Wish You Wood can also target its marketing efforts to reach more customers outside the resort town.

To implement this strategy, Wish You Wood can partner with other online marketplaces, in addition to Amazon, to increase its online presence and sales. The store can also explore ways to negotiate better prices from its suppliers by forming partnerships with other toy stores or co-ops to buy in bulk.