Business

SWOT analysis refers to the identification and analysis of an entitys strengths, weaknesses, opportunities and threats. It takes into account the internal and external factors and becomes an integral part of the planning process.

CaNoga is an online retail business that sells a variety of products and services. The most popular amongst them is the online gaming service. A SWOT analysis has been performed on it and is presented as follows

Strengths
Mass spread of the internet in the most remote areas of the world has made it more accessible for the masses. This means that this online retailing business will have adequate exposure and will be available to most people.

Online retailing is much faster and efficient than conventional retailing. It allows consumers to sit at home and make their purchases hence granting them extensive flexibility to use this service at their own convenience.

Since online gaming is the most popular product being sold through this service, it already has a well established demand. This demand is growing exponentially and so far doesnt seem to be in any dangers of being saturated.

Weaknesses
There is high dependency on the internet and prospective consumers who do not have a command over the use of internet may not be able to access this retailing service.

While making purchases from local retailers has no delivery cost, CaNoga charges a shipping delivery cost which is an additional cost over and above the price of the purchases. This could pose to be a great weakness to CaNoga and may even require it to eventually erode its shipping charges although this would put a huge burden of cost on the company.

CaNoga needs to be careful of not adding to many categories to its retailing business as that could contribute to diluting its brand equity and image.

Opportunities
As the use of internet grows wider, the potential and opportunities for online retailing would also be growing with it. This brings more opportunity for the business to flourish and expand.
Since online gaming is its most popular product, CaNoga could work on partnerships with Hollywood in the long run and have a joint venture for these games. This would expand the market for the games extensively and make it more appealing to a wider category of people.

Threats
Since internet businesses are becoming the new fad, they undoubtedly attract competition. Hence CaNoga faces immense competition from websites like Amazon.com, Ebay.com, etc. And these are already established online retailers hence they have already created their value for the consumers. Being a new entrant would mean that CaNoga would have to work twice as hard to attract customers.

Information Technology has been rapidly advancing in the recent few years and is expected to continue to do so. This means that for all we know, 5 years down the road internet may just become a depleted technology. This means that CaNogas existence well into the future will become threatened by technological advancements.