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SWOT Analysis

Home Free essays Analysis SWOT Analysis

Population growth in Africa has led to an increase in mortgage home financing and construction of real estate in almost all countries. Building and remodeling increased the demand for interior design services. For a medium sized service business, an initial capital of about 37,500 dollars will be required for a meaningful beginning considering economic realities in the region. Profitability and sales vary depending on the targeted customers and range from 12,500 dollars upwards per annum. Increase of the population in Africa has led to an increase in demand for more unique home designs as a result of changing lifestyles and urban life (Phillips, 2011). Most parts in rural areas are undergoing development and civilization. Vintage interior decor is being sought after throughout the country, and this has increased demand for these services and accessories.

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In this case, we focus on Hilex Home Interior Designs (H.I.D), which is among the leading companies in the continent offering interior designs and home furnishes. Faux painting is among the trending interior designs in the region with many opting for it in their homes. It involves applying “decorative finishes to walls, ceilings, floors, furniture and accessories use paint glazes and other media, mixing colors and applying them with just the right touch”. HID, therefore, saw a great opportunity in this and decided to invest in this project. The company held a general meeting with its stakeholders in order to undertake this milestone of opportunity.

The focus was mainly on the marketing plan for HID interior designs. With regard to the challenges likely to be met, HID put in place several goals and objectives in relation to sales figures for it to achieve both short-term and long-term objectives.

Analysis of the company was carried out placing more focus on the goals and objectives of the company that will be achieved by penetration and differentiation strategies, a combination of which will meet the needs of customers and help achieve their highest level of satisfactions. It carried out a SWOT and PESTEL analyses that will outline long- and short-term projections of a business.

PEST Analysis

Political and Legal Environment

The business will not be affected by political differences in the region. There are some legal aspects, which HID will need to adhere to such as permits from the local county council, and approvals from the National Bureau of Standards to ensure that only high quality services are offered and that products sold are of right standards. It will also provide employee benefits such as the Work Injury Benefits Act (WIBA).

Economic Environment

Economic factors will also be considered. There is a ready market for services, since the business is bringing them closer home. There are proper infrastructures, good road networks, and adequate power and water supply. The business is near a location where finished products are readily available and can be accessed upon the request of the clients bringing success to the business.

Social and Cultural Environment

More and more residents in the region are shifting from semi-permanent houses to more sophisticated and simple permanent houses. This means high demand for an interior business in the region. The presence of mortgage housing will also be a big boost to the business.

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Technological Environment

With more technological advancements, HID is seeking to stock vintage and cozy designs that are highly compatible with advancements in technology. It targets to stock products that will go hand in hand with the new technology such as liquid cement that is bought in liquefied form for easy mixing.

SWOT Analysis

In its SWOT analysis, a company will be analyzing both its external and internal environmental factors. In an external environment, the company will be looking at threats and opportunities. These are the factors that the company has no or little control over (Hill & Westbrook, 1997). In the internal environment, the firm analyzes its strengths and weaknesses. These are the factors that the company can control and, therefore. influence. Strengths, weaknesses, opportunities, and threats (SWOT) analysis is an essential part of the formulation of strategies that are designed to convert inspirations expressed in mission statements into realities and ensure that objectives of a company are achieved. The business will have strengths such as probity with its clients in its endeavors. Effective management as well as prompt decision making will also be copmany’s strengths. Employment of qualified staff will be another strength of a company (Hill & Westbrook, 1997). HID will take time to gain customers loyalty and also gain publicity so as to develop a large customer base. Logistics may be a weakness as well getting rare materials for its customers. Most banks, such as National banks, are ready to finance businesses with a huge potential of growth, therefore, making the company target loans from such. With a huge and dire need for building and construction in the region, HID will have huge prospects of growth.

Having considered the SWOT analysis, the business intends to convert its weaknesses into strengths and its threats into opportunities. It will then match its strengths and opportunities to gain a competitive advantage in the region.

A Summary of the SWOT Analysis


Value-driven approach;

Business-led, IT-enabled, approach to engagements;

Prompt decision making processes;

Qualified staff;

Honesty with its customers;

Breadth of service and skills.


Brand awareness;

Unique and Vintage designs sourcing;

Logistics problems due to high fuel problems;

Limitation of market opportunity due to audit.



Source of funding;

Pattern-based strategy;

Mid-market penetration;

Other high-growth sectors.


IT providers with business capability;

Government policies;

Macroeconomic factors such as inflation and high interests.

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