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School
Vancouver Community College *
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Course
122
Subject
Information Systems
Date
Apr 3, 2024
Type
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Pages
1
Uploaded by CaptainViperPerson426
- TechGlow Solutions SWOT Analysis r- Specialization in the senior market will help to reach unique customer segments and provide a vital point of differentiation when competing with Geek Squad. * The ability to work on administration tasks in Erik’s home office offers a chance to reduce costs. Reducing costs is an important factor for new businesses and will contribute to a higher profitability for TechGlow. * Inclusivity training to provide service to people with disabilities will help Erik differentiate himself further, offering to new customers segments that require his service. Having more customer segments means that TechGlow will have more opportunities to make money. * Membership with the Vancouver Chamber of Commerce and Better Business Bureau gives Erik a sense of credibility and support which is essential for new businesses. As a new business, TechGlow will likely benefit from extra training from the VCC which will hopefully lead to more profits. * Erik has liability coverage, giving him a safety net when working on the job in case anything goes wrong. With this liability coverage, TechGlow is less likely to run into accidents which could hurt their reputation. » Erik has 9 years of previous IT experience, whereas GeekSquad's average employee only has 5, giving him 4 more years of experience in this industry. This could be a vital advantage in the eyes of customers when choosing a tech support business. ‘Strengths * The smart home market is expected to be valued at $207.88 billion. This proves that the industry that TechGlow is taking part in has an extremely healthy amount of money circulation, meaning that TechGlow may be able to capitalize on it. * To leverage the growing demand for connected home security systems, Techglow Solutions could advertise installations for this to create an easier revenue source. * A growing number of senior citizens (estimated 1.5% increase in 55+ population in 5 years) in the Vancouver area proves the existence and growth of the desired customer segment that Erik is targeting, meaning that his business is likely to expand. * Global shift towards Al and automation proves that there will be a temporary lack of general knowledge in this industry, an opportunity that Erik can capitalize on through his tutoring and installation services. * As physical isolation increased during the pandemic, a growing number of seniors want technology in their homes for communication, which is perfect for Erik and his target market. Opportunities o = Unidentified operational hours: If Erik starts to take on more projects ‘ and eventually expand to other cities (Burnaby and Richmond), he may experience an incredibly busy schedule which could hinder the quality of his work. If Erik does not manage his scheduling well, time delays and over-promised hours could hurt TechGlow's reputation. Poor and outdated advertising choices: Advertising through fridge magnets and placemats poses an issue to Erik's business because they will not yield the necessary amount of brand recognition to be able to compete with the current market. Without much market presence, most consumers will hire services they know, like Geek Squad. Lack of additional help: Installing larger appliances such as refrigerators could pose issues for TechGlow since Erik works alone. If this is not carefully considered, Erik may disappoint some customers by damaging the product or not being able to offer his services, hurting his small reputation. Unrealistic income statement that overestimates profits: When starting a business, it is important to be realistic, but Erik’s current income statement may be getting his hopes up. A properly run business needs to have an accurate and reasonable income statement and therefore its essential to TechGlow's success TechGlow Solutions is unable to provide a post-installation warranty, unlike GeekSquad. In addition to Erik's limited reputation, a lack of this warranty could cause customers to search for a more credible company. As a new company, TechGlow could experience a slow start to success. Weaknesses Post pandemic semi recession may mean people do not want to spend more money, especially on new technology and related services, limiting Techglow Solutions possible revenue max. Competition is very credible, therefore people may only work with the companies they know, such as Geek Squad, meaning it makes it harder for Erik to get customers. An increase in free online support, like YouTube, could pose a threat to the demand of TechGlow’s smart device tutoring services because learning online can be done anytime and anywhere. Cybersecurity risks can pose a threat to Erik and TechGlow. When dealing with technology, there is always an possibility of cybersercurity breaches and if TechGlow encounters an issue like this, it could hurt their reputation and market identity. Changing regulatory requirements for technology and tech support may raise operational costs, making it hard for a new business to get up and running. Senior people may prefer to have their close friends and family help with their technological needs, meaning he could have a harder time getting customers. Threats
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