SWOT Analysis of the Product
The SWOT analysis encompasses the strengths, weaknesses, threats, and opportunities. SWOT analysis is critical in evaluating the strengths, weaknesses, opportunities, and threats of an organization from which informed decisions are made. The SWOT analysis for the proposed Smart Shopping Cart is discussed below.
Strengths
Being a new concept, the innovative nature of this product is a primary strength that may help it achieve massive success in the targeted market across the U.S. and beyond. The technological aspects of the Smart Shopping Cart will receive massive acceptance in the U.S. market because of its uniqueness and efficiency in shopping. This will help in improving its popularity in the market as more and more clients will quickly embrace the concept. The ability of the Smart Shopping Cart to meet the customer’s shopping demands by quickening the checkout time will help the company retailing this product to be successful in the U.S. market. Because the proposed Smart Shopping Cart integrates several technological applications, such as a scanner, smartphone charging port, and phone clip, it is predicted that customers will not only embrace the new idea but will internalize its usage as a new innovation to make their shopping experience easier and more convenient. In addition, the image of the Smart Shopping Cart, especially the strength of its brand as being a futuristic concept, will also help in promoting its acceptance. There is good scope for scalability of the product acceptance, which would enhance the brand image and market share. The product promises convenience and time management for shoppers.
Weaknesses
The main weakness that the product may face in the market is the inability to come up with applications or user manuals that are incorruptible by the competitors. In addition, since the Smart Shopping Cart will be a collection of several ideas that are already patented, the product might face legal battles with some of its fiercest competitors over breach of copyright. This is because most of the technology-based products have designs that can easily be copied by competitors. Moreover, some clients might face difficulty in using the Smart Shopping Cart, especially the barcode scanners. For instance, senior citizen shoppers might find the product too complex and intimidating. In addition, technological failures might render the product useless to a user.
Opportunities
Technology-based shopping support devices have been rapidly expanding over the years. Mobile phone usage in the supermarket has almost become a basic need both in the developed and developing economies. This means that the Smart Shopping Cart has a massive market that needs this product to facilitate usage. The rise in the population of the middle class in the U.S. has also offered an opportunity for the company retailing the Smart Shopping Cart. Specifically, the increasing number of shoppers across the U.S. will increase the demand for the Smart Shopping Cart, which promises to make the shopping experience convenient and save time. The emerging technologies have offered various opportunities to the Smart Shopping Cart product, especially in terms of potential multiple uses. Technology has improved the speed, efficiency, and effectiveness of the shopping experience.
Threats
The massive competition, especially from the potential arch-rivals, should be evaluated and corrected immediately. This competition may force the firm retailing the Smart Shopping Cart to engage in price wars that may erode its profitability. The legal battles that the Smart Shopping Cart might face over patent issues may also affect the operations and image of the product. The electronic market is so dynamic that it may not be possible to predict what consumers will demand tomorrow. Additionally, product improvement and development requires a lot of financial and human resources to conduct research to come up with new superior upgrades. However, sometimes the products do not last in the market before they are considered old fashioned. These threats might reduce product acceptance and penetration in the dynamic market. The SWOT analysis is summarized in the table below.
Summary of the Smart Shopping Cart’s SWOT
Competitive Market for the Product
Marketing strategy is essential before actualizing projections of a blueprint of a marketing plan. As a matter of fact, this plan functions on the margins of informed decision making based on comprehensive research on viability and sustainability. In the overcrowded cosmetics industry, product positioning is directly linked to success in the short and long term, especially for a new product such as the Smart Shopping Cart. Adopting a First-Mover Strategy, the retailer of the Smart Shopping Cart should position this product as the first of its kind in the market. Through a defined delivery channel and strong media marketing, the company should revolve on quality maintenance to support the leading marketer status. In the process, the focus will be directed to the most competitive price and convenience to gain a competitive advantage over the traditional carts. In addition, the company may develop multiple brands of the product that target different types of customers in terms of their technological literacy levels.
Potential End Customer’s Behavior
Since the targeted market has low entry barriers, the proposed product is likely to reap from the experimenting consumers as the product may appeal to the younger generation, which will be attracted to the technology-based Smart Shopping Cart. However, the older customers, especially those with less than a college education, might find the product very complex and not user friendly. This might influence them to have reservations about the product.
Potential End Customer’s Attitude
In order to move the Smart Shopping Cart brand forward, it is critical to adopt the localization strategy that directly appeals to different target markets because of differences in perception among customers. The localization strategy will help in the triangulation of the “how,” “where,” and “what” of customer perception since it targets customers from different economic, social, and usability backgrounds. It involves the identification of the unmet customer needs, examining and deploying potential enablers in new converging innovative technologies, and identifying capabilities to ensure that the needs are met. Generally, it is expected that middle-aged and older customers may develop a negative perception of the product if cases of failures are recorded. However, younger shoppers might find the product fun and engage.