Ingenious Africa Media Sample Business

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Sample business plan
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6.    SWOT Analysis

The SWOT analysis is a summary of the entity’s findings with regard to the external and internal environment analysis.
6.1    Strengths
  • The passion and commitment for the business demonstrated by the business owners
  • The business owners have the necessary skills and competencies necessary to start and manage the business venture
  • The good credit standing of the business owners
  • The participative and democratic leadership style of the Managing Director
  • The strategic thinking of the business owner
  • The good understanding of the industry and market as demonstrated by management

6.2    Weaknesses
The weaknesses indentified in the business included the following:
  • The low owners’ contribution as compared to the required external borrowing from potential funding providers outlooks a high gearing ratio. Management will plough back profits generated until the gearing is less than 50%.
  • The lack of separation between ownership and management may create problems in terms of control and accountability of the business
  • There is a general lack of a clear market strategy and plan. A comprehensive marketing strategy and plan will therefore be developed in addition to this plan
  • The lack of a strong brand image. A substantial portion of the funds requested in this business plan will be used to create brand equity for Ingenious Africa Media
  • The lack of advanced financial management, accounting and business management skills are a weakness for the business. The entity will employ a skilled, competent and experienced Financial Manager to address this weakness.

6.3    Opportunities
  • Opportunities resulting from South Africa’s growth strategies such as Broad Based Black Economic Empowerment
  • Upcoming soccer and tourism events are likely to stimulate growth in the tourism industry
  • Opportunity for skills development and training though SETA
  • The availability of support and development for businesses through agencies such as Small Enterprise Development Agency, The National Youth Development Agency and other institutions
  • The growing demand in online advertising in South Africa
  • The reduced interest rates
  • The existing Competition Act responsible for the promotion of free and fair competition
  • The advent of technology opening up opportunities to market the business online and have a nation wide and international presence
  • The high rate of emerging new businesses – most of which are likely to require marketing and advertising solutions

6.4    Threats
The main threats emanate from the following factors:
  • The unemployment rates remain high
  • Poverty levels are currently at a high level 
  • The prevalence of diseases such as HIV/ Aids 
  • Social ills such as the current high crime rate
  • Direct and indirect competition as a result of existing firms that provide advertising and media solutions
  • The bargaining power of customers
  • The bargaining power of suppliers
  • The threat from substitute services or alternatives
  • The intensity of rivalry in the advertising arena is relatively high 

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