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The question asks whether a large customer base is strength or weakness, or, Opportunity or threat.
The answer:
Factor SWOT Analysis (SW or OT)
A large number of loyal customers
SW Loyal customers may be a strength as they are a ready source
of repeat business.However, loyal customers’ demands may restrict what the
company can do to innovate.I forgot to mention my doubt in the post.
Customers are external to the business and Strength or weakness are internal to the business. Why they’re then stated as strength of the business?
A large customer base can be categorised several ways:. It is a strength which leads to opportunities.
Strength: you know the contact details of a large number of customers so it is possible to more easily market to them.But that strength also leads to the opportunity of a successful launch of a new product.
Strength: even if one abandons you, you still have many left. If you had only one or two customers, one leaving could be fatal ie a weakness leading to an increased threat of a large fall in demand.
I don’t see that a large customer base can really be described as a weakness.
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