SWOT analysis for DTS
Strength
DTS has a low entry threshold and charges low operating cost for sellers, so sellers could save more costs and earn more profits.
DTS provides clouts as coupon to customers, covering parts of the economic pressure of the consumers and conducive for higher conversion rate from viewing ads to purchasing goods for sellers.
Weakness
Existing users are relatively few, the range of target audience is narrow, thus coming sellers may not make huge profits in a short time.
With lots of Clouts as subsidy in the early stage, customers highly depend on subsidy and have low brand loyalty, which may not retain customers in the future.
Users have little incentive to purchase, and sellers highly rely on the video and game advertising to raise the incentives, which is a risk for sellers to balance the costs of advertising, conversion rate of purchases and the potential benefits that DTS could provide.
Opportunity
During the epidemic, increasing people spend more time in online activities, which benefits DTS which is good at taking advantage of online games and videos advertising to make fun and attract potential consumers.
During the epidemic, some people have worse economic situation and become more price-sensitive, hence they are more easily attracted by DTS’ subsidies.
DTS’ targeting audience Gen Zers’ consuming capability is firmer.
Threat
Platforms like Instagram and Tik Tok that are also highly entertaining and shoppable are more mature and influential.
DTS is still in the growing stage, and the entry barrier of the industry is not high, thus DTS should enhance its competitiveness and irreplaceability.
To sum up, DTS has advantages on attracting new customers and clients given the opportunities provided by current environment. However, it will be a challenge for DTS to retain users with its strengths and weakness. Besides, DTS should focus on its segmentation and specialize itself from other social and shoppable platforms to expand in the future.
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