Question

Brothers Local Company operates a ‘doorstep’ fresh bottled honey delivery service. The two brothers carry on the business that they inherited from their father in the early 2008. They are the business’s only managers. The company operates from a yard on the Queen Alia Airport Street, a substantial town in mid-South of Amman.
The company expanded steadily from when the brothers took over, by which time it employed 35 full-time round staff. This was achieved because of three factors: (1) some expansion of the permanent population of Airport Street, (2) expanding company’s geographical range to areas surrounding the Airport area and (4) a positive attitude to ‘marketing’.
As an example of the marketing effort, when new residents move into the area, the member of the rounds staff concerned reports this back. One of the managers immediately visits the potential customer with an introductory gift, usually a sample bottled honey and a basket of biscuits. This would usually help company to obtain a regular bottled honey order. Similar methods are used to persuade existing residents to place orders for delivered bottled honey.
By the mid of 2015, the company had a monopoly of doorstep delivery in the Airport Street area. A combination of losing market share to the company and the town’s relative remoteness had discouraged the competitors’ doorstep suppliers. The little locally-based competition there once was had gone out of business.
Supplies of fresh bottled honey come from a bottling plant, owned by one of the national honey businesses which is located 50 kilometers from Airport Street. The bottles deliver nightly, except Friday nights, to the company. The company delivers daily, except on Fridays.
Profits have fallen since the early 2010s. Sales volumes have fallen about a third, compared with a decline of about 50 per cent for doorstep deliveries nationally over the same period. New customers are increasingly difficult to find, despite a
continuing policy of encouraging them. Many existing customers tend to have less bottled honey delivered. A sufficient profit has been made to enable the managers to enjoy a reasonable income compared with their needs, but only by raising process. Currently the company charges 3.75 JOD for a standard bottle, delivered. This is fairly typical of prices for bottled honey delivered to the doorstep around Amman. The nearest supermarket, which is located in the center of Airport Street, charges 3.00 JOD a bottle and other local stores charges between 3.25 JOD and 3.50 JOD.
Currently the company employs 15 full-time rounds staff, a van maintenance mechanic, a secretary/bookkeeper and the two managers. The company is regarded locally as a good employer. Regular employment opportunities in the area are generally few. Rounds staff are expected to, generally do, give customers a friendly, cheerful and helpful service.
The two brothers continue to be the only stakeholders and managers and compromise the only level of management. One of the managers devotes most of his time to dealing with the suppliers and with issues connected with details of the rounds. The other manager looks after administrative matters, such as accounts and human resources issues. Both managers undertake rounds to cover for employees' sickness and holidays.

Required:
As far as the information given in the question will allow, undertake an analysis of the strengths, weaknesses, opportunities and threats (a SWOT analysis) of the company.

Answer 1

Strengths:

1. Some expansion of the permanent population of Airport Street,
2. Expanding the company’s geographical range to areas surrounding the Airport area and
3. A positive attitude to ‘marketing’.

Weakness:

1. It is maintained by two brothers so the management may be complicated
2. Pricing is very high  

Opportunities:

1. Customer base can be increased
2. Can also be expanded to various businesses

Threats:

1. Threats from existing players
2. Threats from new entrants
3. Threats from an increase in the prices of the suppliers