Roller Blading Pty ltd is a successful skating rink in south western Sydney. For the first 5 years the business experienced growth in customers and profitability. The business developed goodwill within the local community as a responsible business that supported local community projects.
The last 12 months the business has experienced a downturn due to a 'wet n wild' recreation park opening in the local area. This is threatens its long term viability of Roller Blading Pty Ltd, the issues the business facing are: falling sales which has impacted on profitability public anger and complaints due to recent price increases in skate hire poor service from staff as well as high staff turnover an accident involving customer which become very public
Situational analysis of Roller Blading Pty Ltd
Situational analysis provides the firm with an opportunity to examine its current position within the market. The business wil examine such areas as: the market share of its product future trends within the market strategies used by competitors
Changing consumer taste and preferences.
The last 12 months the business has experienced a downturn due to a 'wet n wild' recreation park opening in the local area. that caused the make share of the business to fall due to increasing in skate hire, poor customers services and high staff turnover this impacted on the profitability. 'Wet n wild' uses the benefits of competitors advantages that customers are not satisfy of the Roller Blading Pty ltd services and pricing therefore that can motivate and gives wit n wild an advantage ahead of what is expected e.g lower cost and high skilled staff.changing consumer taste......
Business life cycle
Business life cycle examine the current position of the good/services that a business produces in the marketplace. changing trends, innovation ,product prices, sales and profit margins will impact on the success of the product within the marketplace and its something all businesses will experience. The current position of Roller Blading Pty ltd is on post-maturity due to competition, falling sales and increasing price and poor service from staff as well as high staff turnover which had a major impact on profitability and if the business doesn't do anything it will lead to cessation.
Current economic environment
Economic environment is the totality of economic factors, such as employment, income, inflation and interest rates that influence the buying behaviour of consumers and institutions. employment The unemployment rate of Australia increased 6.0 per cent in January 2014, unemployment occur when there's a downturn in aggregate demand. Therefore businesses will cut jobs to save and make up for the cost of expenses. interest rate
Interest rate is lower, cost of repayment low the lower, the prices of the products that a business is providing will be cheaper and this can motivate and gives consumer the confident to spend more. The lower the interest rate the more business makes sale profit. inflation Currently inflation rate of the business is within the acceptable range with up to 2 to 3% target. this is favourable for the business.
Analysis of challenges faced by Roller Blading Pty Ltd
Market research is the gathering of information that a business need it, a business should have ideas about the type of information it is looking for to establish market objectives, identify the target market and develop marketing strategies. Once its information needs are established, the business can determined the most appropriate research method.it can be either primary data or secondary data
Primary data is the information that is collected for the specific purpose which it will be used. For example if roller Blading Pty ltd conducted research to determine the number of females has purchased the memberships. the data it gathered be primary data because it was gathered only to find