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SWOT ANALYSIS OFA SACCO SOCIETY

BY STEPHEN KIRITU MWANGIA CO-OPERATOR

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S-STRENGTH-Loyal membership

-Ready market for product and services offered-Favorable interest rates-Credit facilities are accessible and conditions notstringent-Management is accessible and approachable

Member recruitment and marketing-Board and member confidence-Strong , transparent and Informed leadership-Established team and team work

-Competent , committed and hardworking staff-Experienced management and skilled staff-Good reputation, positive image and brand

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W-WEAKNESSES-Most members are net borrowers and not savers-Savings are not realized out of personal decision butas a result of the minimum set by the general meeting-Leadership through democratic practice and oftenleaders would want to be loyal to the electorate-Leaders lack entrepreneurship/business skills

-Disregard of policies (i.e. credit policy) bymanagement-Pressure and demand from members because ofpromise during the election period

-Increasing poverty levels and inflation forcingmembers to seek cheap financial support-perpetualborrowers-Members not able to do self-appraisal of projectedinvestments

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O-OPPORTUNITIES-Unsatisfied demand from the members/customers-Amendments to the Co-operative Societies Act,

Rules and By-Laws i.e. open up membership, diversityin other products (Front Office Services)-A sound representation in the Apex bodies(corporate image, synergies)

-Open agency banking-Advancement and Growth in Technology e.g. mobilebanking (MPESA, ZAP)-Aggressive marketing and publicity campaign ofproducts and services-Potential to attract more membership because of itsfinancial stability and good customer service

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O-OPPORTUNITIES CONT-Salary processing for members

-Regulated business environment-A wider and unexploited and untapped marketregions-Introduction of new loan products-Innovativeness in product branding-Poor performance of other SACCOs in the region-Opening of branches and service centres to bringservices closer to members-Close relations with the employer

-Embracing of partnership with other organization andstake holders-Education and training of members

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T-THREATS-Competition from micro-finance institutions and

banks-Change of policies and legal framework-Increasing poverty levels and inflation-HIV/AIDS pandemic-Retrenchments and redundancies affect the capitalbase and membership-Technological changes in the financial and businesssector-Ageing membership

-High rate of member withdrawal-Lack of awareness ,ignorance and poor patronageamong some members-Transfer of SACCO members from their work place

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THANK

YOU