Small Business Marketing - Threats

In the last of this four-part series, we will consider the final of
the most important considerations for analysis of the marketing
efforts of a small business. The threats a small business faces are
the last part of a SWOT (strengths, weaknesses, opportunities, and
threats) analysis, and reveal potential emerging challenges to the
business. To be successful, these challenges should be considered in
advance, planned for with contingency plans, and if necessary, dealt
with. Threats can take many different forms, and the business
landscape needs to be examined and periodically reviewed, as threats
can quickly appear, but can also disappear again with no ill effects
just as quickly. Nevertheless, when they do not disappear they can
cause havoc, and so here are some of the changes to the environment
which can pose significant threats to a small business:Adverse
emerging trends, meaning that current customers will either not make
use of your products and services, or they may decide to use you as a
provider far less often
New technological changes, which decrease the demand the product or
service you provide.
Totally new offerings by competitors, which make your products and
service obsolete.
Major changes in seemingly unrelated markets, which can eliminate the
use of your products and services when they are not essential (or are
no longer so)
Unfavorable reviews by key independent reviewers
Unfavorable alterations to current customer qualities (age, location,
buying habits, etc.) which influence purchasing patterns
Increased cost of raw materials, which then either increases the costs
of your products or services (or reduces your profit margins)
Other adverse changes in previously established customer desires,
thoughts, whims, or habits
Weak economic conditions in general
Poor past performance by your firm (causing dissatisfied customers to
seek out the competition)
The discovery of undesirable side effects which have occurred to
previous customers
Newly unsatisfied customer desires, which your firm either does not
recognize, or does not address adequately
Undesirable alterations to the current legal environment, which now
prohibit certain opportunities from being realized
Problems or gaps in your firm's existing offerings, which are not
realized or fixed
Inappropriate pricing strategies, given competitor's offerings and
market conditions
Completely new desires by customers, which your firm neglects to meet
More competition, as newer competitors enter the market, or other
firms expand into your industry
Competitors who discover expanded usage for their older products and
services, which your firm cannot match
Poor communication with shareholders, hostile takeover attempts, or
other outside owner influence attempts
Reductions in the number of offerings of products and services by your
firm, especially profitable ones
Charges of illegal action (price fixing, collusion, etc.) by
regulatory and legal entities
Reductions in the number of offerings of products and services by
businesses which complement your own firm's products and services
Patent, trademark, or copyright infringement claims by competitors
Other changes which can make substitute goods and services more
desirable than they were in the past
Undesirable alterations to current contracts (with suppliers,
customers, lenders or other key partners)
Adverse changes to a supplier's agreement with you, or existing
suppliers going out of business
Poor business decisions
Loss of key employees, or limits in the supplies of human capital who
could benefit your firm
Employee wrongdoing, or questionable ethical activities, which are
later exposed
Undesired changes to foreign markets where business is transacted,
which can include some (or all) of the above
Put differently, more threats exist when more of the above patterns
are present. These should be duly considered before the attempt is
made to launch a new venture, or even continue existing business
operations. Even when a business environment includes many threats, a
highly successful business can still be launched, however,
significantly more skill is needed than when these threats are absent.
Generally speaking, however, the businesses which respond the best to
new threats in rapid, efficient, and effective manner are best
positioned for future success.Copyright 2010, by Marc Mays