SWOT Analysis Table 1 SWOT Analysis Strengths Weaknesses Subscription – Based Low operational costs User-friendly platform Low barriers to entry for competitors Customer retention Opportunities Threats On-going trend of entrepreneurship Huge Market Growth of e-commerce Great competitors such as Amazon International economic relations Strengths As was mentioned earlier, the company is subscription based and it can predict its annual earnings much easier. Therefore, it can offer much detailed financial information to the market to attract investors. The operational costs are low as Shopfiy only has a total of five small offices.
SHOPIFY MARKETING PLAN 4 Shopify offers a friendly platform that allows the consumer to design a website with no web development background. Their customer service is strong and is always there to help. Weaknesses There are no barriers to entry and the company is sensitive to competition. Shopify was the very first company that started in this industry. However, there are no barriers present to stop other competitors from entering. As was mentioned earlier, Shopify is depended on its customer’s success. If the customer is not making any sales through his or her website, they will give up and Shopify will lose a subscriber. Opportunities Today’s on-going trend of entrepreneurship is a boost to Shopify’s business. Owning an online business is a dream for many people. Being successful in it; however, is one true challenge. Shopify can also do business around the globe, and easily reach foreign markets. Threats Companies such as Amazon can easily enter Shopify’s market as soon as they see a potential for growth. E-commerce is already at the core of Amazon’s business, providing a service like Shopify is not that hard. Many merchants who own a Shopify store are sourcing their products from overseas countries like China. International economic relations such as the recent U.S trade war with China can and will affect the merchant’s business (Phadermrod, Crowder, & Wills, 2016). Objectives and Goals
SHOPIFY MARKETING PLAN 5 Shopify’s goal is to see the next century (Baldwin, 2017). There many challenges that it needs to face. If the business model is viable enough to keep up and see the next century, then the companies such as Amazon will see the potential and they will enter the market. Shopify must create a better community among its users. The customers are not as loyal as loyal as they should be. Shopify is just the engine for merchants, Amazon and eBay can also offer such engine to merchants. Shopify should start a program that increases the customer loyalty. Lack of a reward system can be seen in Shopify’s platform, offering a valuable reward once a merchant hits a certain volume can be a good way of achieving customer loyalty.
- Spring '16
- Marketing, Shopify