Performing a SWOT analysis is commonly done today to provide invaluable strategic insights for businesses. It has been found that systematically evaluating a company using SWOT allows one to gain perspective on that company. I decided to do one for newsagencies. Hopefully, this will aid you to look at the newsagency industries and add some points of your own for your particular situation. If you want to know how to do a SWOT, click here.
SWOT is commonly considered a roadmap for a business.
Newsagencies have long been a staple of the Australian retail landscape. However, these beloved community stores face emerging challenges in today's digital era.
SWOT Analysis of Australian newsagencies
Here is a SWOT summary of key factors:
Strengths - This is the pluses that the industry has:
- Established community presence and loyal customer base
- Wide product range catering to diverse needs
- Convenient locations in suburbs and shopping centres
- Personalised customer service with specialised advice on core products
- Strong supplier and distributor relationships
- Family ownership provides flexibility and adaptability
Weaknesses - This is the problems facing the industry as a whole
- Declining core products, for example, newspaper and magazine sales
- Economic factors like current reduced discretionary spending
- Higher costs like rent and wages
- Low and often declining profit margins on core items
- Competition from supermarkets
- Growing online shopping trends
- Owners are consumed with day-to-day operations, leaving little time for long-term planning and execution.
- External risks like theft and disasters
Opportunities - This is what individual businesses should look at
- Diversify into new product ranges, for example, giftware, toys,
- Fast decision-making ability
- eCommerce website
- Delivery services
- Leverage low-cost social media marketing
- Tailor products to local demographics
Threats - These are problems an individual newsagency might face
- Move to online shopping
- Lack of a centralised authority limiting group advertising/marketing/buying
- Resource limitations that hinder their ability to implement strategic changes eg with few staff effectively, newsagencies lack specialised expertise in areas like digital marketing and e-commerce. As such, owners wear many hats and may be stretched thin.
- Growing problems legally in running a business
- Failure to adapt to changing customer needs
The Changing Role of Newsagencies
- It is a false perception that newsagencies have not changed over time; a typical newsagency in 1950 was a very different business in 2000 and very different from a newsagency today. Like any other business, it changed.
- Newsagencies must override inertia and actively transform to stay viable
- Those that innovate and find new solutions will be best positioned
- Renewal requires rethinking dated business models and learning from industry innovators
If you have any comments or suggestions, let me know.