Feasibility study: pure argan oil

SWOT Analysis

SWOT Analysis (Strengths, Weaknesses, Opportunities and Threats) is an analysis which main goal is to identify the possible internal and external factors which can have an impact on the organization.Pure Argan Oil as all the companies in the world has internal strengths and weaknesses and could face external opportunities and threats as well.

Strengths:

The goal of identifying the strengths of our company is to maximize the benefit from these strengths and to try to make it as a strong competitive advantage.

The strengths could be summarized as:

a. Pure and 100 % organic product;

b. USDA (United States Department of Agriculture) certification;

c. New product in the market;

d. Young team and excited to enter to this challenge;

e. Very promising growing market;

f. Very vast potential market;

g. We will be presented in three continents, America, Europe, and Africa;

h. More researches are being in lab every day about the importance of Argan oil in all areas;

Weaknesses:

The goal of studying the weaknesses of our company is to try to fix them andturn them to strengths points in order to compete in the market.

The weaknesses could be summarized as:

a. Lack of experience in this area among of the team;

b. Absence of website for the product;

c. Limited team member;

d. High production cost for the product;

e. Only few suppliers for the product;

f. Double taxation if the product sold outside of Morocco;

g. Absence of the product from stores;

h. Only the product will be available for online shoppers;

i. Limited potential market for cosmetic use (90% female);

j. Very limited Advertising budget;

k. Absence from the Asian market;  

l. High price of the product compared to similar oil(coconut,olive...);

Opportunities:

Opportunities present the positive external effect of different factors on an organization. The Opportunities which could face Pure Argan Oil could be summarized as fellow:

a. Very huge usage of Argan oil in cosmetic, food, Medical, present a big   opportunity for us to expand our brand to these area (food, medical);   

b. New markets are very growing especially in Japan and middle East;

c. The recovery of the international economy means the augmentation of the demand on all kind of products;

d. Online detail marketplace is the fastest growing sales channels in US ( more than 100 million Americans purchase goods from online marketplace in US;

e. The orientation of Morocco to make it easy for exportation of Argan oil , new law has been implemented;

f. The best use of social media to advertise the product;

g. Recently, Facebook launches marketplace for local sellers and buyers, present also a good opportunity for our product;

h. Possible expanding the brand to new products in the future;

Threats:

What has been said about opportunities, applied also to the threats, which could present a negative impact of different external factors, on any given organization. The possible threats that could face Pure Argan oil could be summarized as:

a. The big threat can face Pure Argan Oil is the increasing competition from other similar products;

b. The non-stabilityof the dollar value Vs Moroccan devisethreatens the net benefit and then the price;

c. The production of Argan oil in Morocco depends on the weather, then a dry season means less harvest which mean high prices;

d. The survive of our product needs more innovation and attract new potential market;

e. The threat ofslowdown of the economy, which means less demands on the products;