The§ four§ factors§ are§ not§ always§ equally§ relevant§ or§ important§ for§ an§
organization§ while§ formulating§ a§ strategy.§ Sometimes§ a§ single§ strength§ is§ so§
prominent§ that§ it§ is§ good§ enough§ to§ overcome§ all§ weaknesses§ and§ external§
threats,§ and§ the§ company§ can§ create§ opportunities§ on§ its§ own.§ The§ strength§ can§
be§ a§ unique§ technological§ patent§ or§ tactical§ business§ position§ or§ a§ formidable§
research§ output,§ which§ overcomes§ weakness,§ is§ able§ to§ counter§ any§ threats§ and§
can§ get§ the§ people§ to§ buy§ its§ products§ in§ any§ market.§ In§ some§ organizations,§
one§ weakness§ is§ capable§ of§ dooming§ the§ prospects§ of§ organization§ and§ needs§
to§ be§ worked§ upon§ urgently,§ and§ after§ doing§ this,§ the§ entire§ thing§ is§ fixed.An§
example§ of§ placing§ importance§ on§ one§ factor§ is§ Apple,§ which§ focused§ on§
building§ its§ technological§ prowess,§ design§ and§ brand§ value§ more§ than§ anything§
else.§ By§ making§ world§ class§ products,§ it§ could§ offset§ its§ weaknesses§ like§ high§
price§ and§ incompatibility§ with§ other§ software,§ while§ being§ unaffected§ by§ threats§
and§ could§ create§ opportunities§ without§ working§ much§ on§ them.§ It§ still§ does§ so§
and§ is§ successful§ most§ of§ the§ times§ through§ its§ products§ that§ come§ with§
cutting§ edge§ technologies§ and§ design§ features.§ An§ individual,§ company,§ or§
organization§ can§ utilize§ the§ SWOT§ analysis§ approach§ to§ determine§ their§
strengths,§ weaknesses,§ opportunities,§ and§ threats.§ SWOT§ analyses§ are§ useful,§ yet§
they§ vary§ based§ on§ the§ kind§ of§ business§ that§ employs§ them.§ Some§ businesses§
may§ be§ entirely§ distinct§ types,§ yet§ they§ could§ share§ a§ factor,§ necessitating§ a§
SWOT§ analysis§ to§ determine§ how§ things§ turn§ out.§ Conducting§ a§ SWOT§
analysis§ on§ these§ businesses§ compares§ their§ strengths,§ weaknesses,§ opportunities,§
and§ threats.§ The§ four§ components§ of§ a§ strategy§ are§ not§ necessarily§ equally§
relevant§ or§ significant§ for§ a§ business.§ It§ directs§ you§ to§ enhance§ your§ strengths,§
fill§ in§ your§ weaknesses,§ take§ advantage§ of§ fresh§ opportunities,§ and§ reduce§ risks.§
Understanding§ your§ internal§ and§ external§ environment§ clearly§ and§ realistically§
can§ help§ you§ find§ strategies§ to§ improve§ customer§ satisfaction,§ accomplish§ your§
goals,§ and§ reinforce§ vulnerable§ areas§ that§ affect§ your§ performance.§ When§ it§
comes§ to§ areas§ of§ swot§ in§ the§ business§ aspect,§ there§ can§ be§ a§ number§
differences§ when§ it§ comes§ to§ companies§ and§ how§ it§ affects§ companies.§ But§
also,§ there§ can§ be§ some§ similarities.§ Swot§ stands§ for§ strengths,§ weaknesses,§
opportunities,§ and§ threats.§ When§ applying§ is§ to§ a§ business,§ there§ can§ be§ a§
number§ of§ different§ ways§ were§ companies§ may§ have§ similar§ strengths,§
weaknesses,§ opportunities,§ and§ threats,§ even§ if§ the§ companies§ are§ in§ a§ different§
field§ from§ one§ another.§ But§ they§ can§ be§ extremely§ different.
A§ company§ that§ focus§ on§ a§ certain§ area§ of§ the§ swot§ would§ be§ Netflix.§
Netflix§ has§ a§ lot§ of§ different§ areas§ of§ opportunity.§ Also§ some§ weaknesses,§
some§ strengths,§ and§ some§ threats.
For§ example:Netflix§ has§ cracked§ down§ on§ the§ sharing§ password§ although§ this§ is§
a§ threat§ to§ the§ company§ because§ sharing§ passwords§ lowers§ the§ revenue§ It§
would§ also§ be§ considered§ a§ weakness§ and§ a§ strength.§ Because§ password§ sharing§
did§ exist§ more§ people§ to§ learn§ to§ Netflix.§ Now§ that§ Netflix§ is§ cracking§ down.§
It§ is§ losing§ a§ tremendous§ amount§ of§ followers,§ so§ we’re§ looking§ at§ the§ SWOT§
they§ chose§ to§ focus§ on.§ The§ threat§ and§ the§ weaknesses§ instead§ of§ the§ strength§
and§ opportunity.§ es,§ I§ do§ believe§ so.§ Mainly§ for§ the§ specific§ reason§ that§ every§
organization§ does§ not§ operate§ the§ same§ nor§ do§ they§ have§ the§ same§ values§ as§
each§ other.§ The§ SWOT§ analysis§ is§ a§ useful§ technique§ to§ assess§ four§ attributes§
which§ play§ a§ crucial§ role§ in§ an§ organization.§ Organizations§ differ§ from§ each§
other§ when§ placing§ importance§ on§ areas§ of§ pp§ § § § § § § SWOT§ analysis§ because§
different§ organizations§ have§ different§ strength,§ weakness,§ opportunities§ and§ threats.
• Describe§ a§ real-world§ example§ of§ an§ organization§ that§ would§ place§
more§ importance§ on§ one§ area§ of§ the§ SWOT§ analysis§ compared§ to§
another§ area.
THE§ COCA§ COLA§ COMPANY:
Strengths
• Variety§ of§ products§ –§ one§ of§ the§ biggest§ strengths§ that§ The§ Coca§ Cola§
Company§ has§ is§ their§ incredible§ variety§ of§ products§ across§ different§
categories.§ In§ fact,§ there§ are§ over§ 500§ BRANDS§ across§ 200§ companies§
owned§ by§ Coca§ Cola.§ This§ not§ only§ gives§ them§ a§ higher§ control§ on§
the§ market,§ but§ also§ more§ diversified§ expertise,§ and§ less§ overall§
competition.
Weaknesses
• Health§ trends§ –§ one§ of§ the§ biggest§ weaknesses§ that§ the§ company§ has§
is§ its§ unability§ to§ adapt§ to§ current§ health§ trends.§ As§ people§ are§
becoming§ more§ and§ more§ conscious§ about§ the§ unhealthy§ food§ and§ the§
amount§ of§ sugar§ they§ are§ consuming,§ soft§ and§ sugary§ drinks§ are§ slowly§
getting§ substituted§ by§ healthier§ options.
First§ of§ all.§ SWOT§ stands§ for§ Strengths,§ Weaknesses,§ Opportunities,§ and§
Threats.§ So§ you§ would§ have§ to§ know§ that§ first§ to§ that§ what§ we§ are§ looking §
for.§ So§ say§ we§ have§ two§ companies,§ even§ if§ two§ companies§ were§ in§ two§
completely§ different§ fields§ and§ have§ two§ completely§ different§ business§ models,§
they§ will§ still§ share§ some§ of§ the§ same§ related§ aspects§ of§ their§ operations.§ It§
doesn’t§ even§ matter§ how§ they§ perform§ their§ work.§ They§ still§ would§ have§
customers§ and§ employees,§ they§ would§ still§ offer§ goods§ or§ services§ for§ sale§ and§
have§ to§ carry§ out§ their§ work§ to§ bring§ value§ to§ the§ companies.§ By§ performing§
a§ SWOT§ analysis§ on§ these§ companies§ looking§ at§ strengths,§ weaknesses,§
opportunities§ and§ threats,§ you§ can§ compare§ the§ results§ for§ each§ company§ and§
gather§ information§ into§ how§ they§ can§ each§ improve.§ pp§ Threats§ and§ opportunities§
would§ show§ a§ company's§ exterior§ environment.§ If§ these§ two§ companies§ operate§
in§ different§ markets.§ Some§ parts§ of§ the§ business§ ways§ and§ factors§ such§ as§
currency§ exchange§ rates,§ or§ interest§ rates§ or§ even§ inflation,§ will§ be§ the§ same§
for§ all§ businesses.§ Normally§ opportunities§ would§ come§ from§ technology,§ and§
through§ social§ trends,§ partnerships,§ government§ policies,§ and§ cost§ cutting§ to§
improved§ quality.§ Normally§ the§ threats§ to§ the§ business§ starts§ with§ lack§ of§
qualified§ staff,§ competition,§ regulations,§ rising§ costs,§ market§ changes§ or§
unfavorable§ population§ trends.§ During§ the§ process,§ the§ opportunity§ or§ the§ threat§
part§ of§ the§ SWOT§ analysis,§ is§ to§ make§ sense§ and§ to§ focus§ on§ the§ parts§ of§
this§ that§ are§ common§ to§ the§ two§ companies§ to§ make§ a§ good§ comparison.
SWOT§ stands§ for§ Strengths,§ Weaknesses,§ Opportunities,§ and§ Threats,§ and§ so§ a§
SWOT§ analysis§ is§ a§ technique§ for§ assessing§ these§ four§ aspects§ of§ your§
business.§ SWOT§ Analysis§ is§ a§ tool§ that§ can§ help§ you§ to§ analyze§ what§ your§
company§ does§ best§ now,§ and§ to§ devise§ a§ successful§ strategy§ for§ the§ future.§
SWOT§ can§ also§ uncover§ areas§ of§ the§ business§ that§ are§ holding§ you§ back,§ or§
that§ your§ competitors§ could§ exploit§ if§ you§ don't§ protect§ yourself.§ A§ SWOT§
analysis§ examines§ both§ internal§ and§ external§ factors§ –§ that§ is,§ what's§ going§ on§
inside§ and§ outside§ your§ organization.§ So§ some§ of§ these§ factors§ will§ be§ within§
your§ control§ and§ some§ will§ not.§ In§ either§ case,§ the§ wisest§ action§ you§ can§ take§
in§ response§ will§ become§ clearer§ once§ you've§ discovered,§ recorded§ and§ analyzed§
as§ many§ factors§ as§ you§ can.§ SWOT§ Analysis§ can§ help§ you§ to§ challenge§ risky§
assumptions§ and§ to§ uncover§ dangerous§ blindspots§ about§ your§ organization's§
performance.§ If§ you§ use§ it§ carefully§ and§ collaboratively,§ it§ can§ deliver§ new§
insights§ on§ where§ your§ business§ currently§ is,§ and§ help§ you§ to§ develop§ exactly§
the§ right§ strategy§ for§ any§ situation.§ Strengths§ are§ things§ that§ your§ organization§
does§ particularly§ well,§ or§ in§ a§ way§ that§ distinguishes§ you§ from§ your§
competitors.§ Think§ about§ the§ advantages§ your§ organization§ has§ over§ other§
organizations.§ These§ might§ be§ the§ motivation§ of§ your§ staff,§ access§ to§ certain§
materials,§ or§ a§ strong§ set§ of§ manufacturing§ processes.§ SWOT§ analysis§ helps§
companies§ make§ strategic§ and§ informed§ business§ decisions§ by§ helping§ the§
business§ owner§ to§ understand§ your§ company’s§ position§ within§ your§ market§ and§
industry.§ SWOT§ analysis§ compares§ internal§ factors§ of§ a§ business§ which§ are§ its§
strengths§ and§ weaknesses§ against§ external§ factors§ such§ as§ opportunities§ and§
threats.§
I§ think§ organizations§ differ§ from§ each§ other§ when§ placing§ importance§ on§ areas§
of§ the§ SWOT§ analysis§ because§ each§ company§ is§ unique§ making§ each§ entity§
strengths§ and§ weaknesses§ different.§ A§ company§ I§ can§ use§ for§ an§ example§ is§
Coca§ Cola.§ A§ few§ strengths§ of§ this§ company§ I§ can§ point§ out§ would§ be§ their§
variety§ of§ products§ and§ their§ branding.§ Who§ doesn't§ recognize§ a§ Coca§ Cola§
product?
But§ just§ as§ a§ company§ has§ its§ strengths§ it§ has§ their§ weaknesses§ as§ well.§ One§
of§ Coca§ Colas§ biggest§ weakness§ is§ health§ trends.§ Healthy§ living§ and§ eating§ is§
on§ the§ rise.§ Coca§ Colas§ products§ contains§ alot§ of§ sugar§ which§ can§ put§ them§
at§ a§ disadvantage§ compared§ to§ more§ healthier§ beverage§ choices§ such§ as§ a§
gatorade§ or§ fruit§ juice.§
Coca§ colas§ biggest§ competitor§ is§ Pepsi.§ One§ of§ the§ advantages§ Coca§ cola§ has§
over§ Pepsi§ is§ that§ Pepsi§ is§ much§ sweeter§ and§ therefore§ contains§ more§ sugar,§
so§ if§ a§ consumer§ has§ health§ as§ a§ contributing§ factor§ of§ determining§ what§
product§ to§ buy§ Coca§ Cola§ would§ be§ the§ choice.§ However,§ if§ the§ consumers§
sugar§ intake§ is§ less§ important§ to§ them§ than§ the§ taste§ then§ Pepsi§ would§ be§ the§
pick.
These§ companies§ can§ use§ SWOT§ analysis§ to§ make§ strategic§ business§ moves§ and§
identify§ their§ target§ consumer§ base.
Organizations§ differ§ from§ each§ other§ when§ placing§ importance§ on§ areas§ of§ the§
SWOT§ analysis.§ In§ order§ for§ an§ organization§ to§ be§ successful,§ they§ must§ know§
what§ their§ strengths,§ weaknesses§ and§ areas§ of§ improvements§ are.§ Poor§
preparation§ results§ in§ poor§ performance.§ The§ organization§ must§ know§ what§ they§
are§ working§ with§ in§ order§ to§ know§ how§ to§ make§ it§ work,§ Different§
organizations§ may§ take§ different§ approaches§ when§ conducting§ a§ SWOT§ analysis.§
A§ SWOT§ analysis§ for§ the§ automotive§ industry§ would§ look§ similiar§ but§ diferent§
for§ the§ hospitality§ industry.§ A§ SWOT§ for§ the§ automotive§ industry§ would§ focus§
on§ manufacturing,§ fuel,§ rates,§ demand,§ recalls.§ Where§ as§ the§ hospitality§ industry§
SWOT§ analysis§ would§ focus§ more§ on§ availability,§ experience,§ location.§ My§ area§
of§ focus§ is§ Netflix.§ Netflix§ SWOT§ analysis§ would§ be§ focusing§ on§ the§ demand§
of§ streaming§ services§ and§ the§ entrants§ of§ new,§ competitive§ streaming§ services.§
Streaming§ services§ are§ being§ developed§ on§ a§ regular§ basis§ now.§ This§ causes§
concerns§ for§ competition§ on§ a§ much§ broader§ spectrum.§ They§ could§ be§ strong§
in§ the§ area§ of§ they§ have§ original§ movies§ and§ documentaries.§ On§ the§ flip§ side,§
they§ could§ be§ weak§ in§ the§ area§ of§ their§ pricing§ compared§ to§ other§ streaming§
services.§ Their§ area§ of§ improvement§ or§ concern§ would§ be§ several§ households§
using§ one§ account§ which§ in§ turn§ causes§ them§ to§ lose§ revenue.§ I§ believe§ that§
companies§ do§ differ§ from§ each§ other§ when§ you§ are§ placing§ importance§ on§
areas§ of§ the§ SWOT§ analysis.§ SWOT§ Analysis§ is§ the§ framework§ that§ allows§
businesses§ to§ analyze§ their§ company§ strength§ and§ weaknesses.§ § SWOT§ analysis§
also§ allows§ the§ companies§ to§ analyze§ external§ opportunities§ and§ threats§ to§ build§
strategy.§ Each§ company’s§ portfolio§ is§ different§ and§ may§ have§ weaknesses§ that§
differ§ from§ another§ company.§ One§ company§ may§ have§ a§ core§ competency§ that§
is§ valuable§ and§ not§ easy§ to§ imitate§ which§ makes§ this§ a§ strength.Apple§ is§ a§
company§ that§ places§ more§ importance§ on§ its§ opportunities§ and§ strengths§
compared§ to§ external§ companies§ in§ the§ SWOT§ analysis.§ § Apple§ has§ a§ webinar§
for§ their§ new§ release§ products§ a§ few§ times§ a§ year.§ pp§ In§ these§ public§ webinars,§
they§ present§ new§ products§ and§ display§ their§ strengths§ over§ other§ companies§ and§
how§ they§ have§ innovated§ new§ tools§ in§ their§ software,§ hardware,§ and§ digital§
platforms§ like§ Apple§ Arcade,§ News,§ Fitness,§ and§ TV.§ § Apple's§ expansion§ in§
the§ finance§ world§ with§ its§ partnership§ they§ have§ with§ Goldman§ Sachs§ has§
created§ more§ opportunities§ for§ them.§ Also,§ they§ capitalize§ on§ their§ product§
growth§ distribution§ globally.§ Apple§ places§ more§ importance§ on§ its§ strengths§ and§
opportunities§ in§ its§ business.§ I§ think§ that§ organizations§ do§ differentiate§ on§ how§
the§ SWOT§ analysis§ is§ implemented.§ As§ explained§ in§ chapter§ 4,§ the§ strength§ of§
organization§ A§ are§ not§ the§ same§ for§ organization§ B,§ and§ for§ that§ reason§
organization§ A§ can§ use§ its§ strength§ to§ take§ advantage§ of§ opportunities.§ Some§
organizations§ concentrate§ more§ on§ their§ strengths,§ and§ weaknesses,§ and§ others§
focus§ on§ their§ opportunities§ and§ threats.§ It§ will§ just§ depend§ on§ where§ the§
organization§ is§ and§ what§ it§ wants§ to§ achieve.§
American§ Airlines§ is§ too§ focus§ on§ the§ organization’s§ strengths,§ reputation,§ and§
brand§ image§ that§ has§ not§ taking§ interest§ in§ its§ weakness.§ Low-Cost§ Carriers§
that§ offer§ cheaper§ flights§ to§ many§ destinations.§ I§ do§ think§ organizations§ differ§
from§ each§ other,§ when§ placing§ importance§ on§ areas§ of§ the§ SWOT§ analysis§ and§
this§ primarily§ depends§ on§ the§ nature§ of§ their§ business§ and§ the§ products§ or§
services§ they§ offer.§ An§ example§ of§ two§ companies§ that§ would§ place§ a§ different§
level§ of§ importances§ in§ the§ SWOT§ analysis§ is§ a§ software§ company§ and§ a§ fast§
food§ restaurant.§ The§ reason§ for§ this§ is§ a§ fast§ food§ restaurant§ has§ a§ standard§
business§ practice§ with§ a§ corporate§ franchisor§ that§ has§ assessed§ all§ the§
demographics§ of§ the§ restaurant’s§ location§ and§ consumer§ practices.§ Therefore,§
their§ need§ to§ do§ any§ type§ of§ consistent§ SWOT§ review§ on§ their§ internal§
strengths§ and§ weaknesses§ versus§ their§ external§ opportunity§ and§ threats§ is§ not§ of§
utmost§ importance.§ A§ software§ company,§ on§ the§ other§ hand,§ is§ in§ a§ highly§
competitive§ market§ where§ software§ creation,§ enhancements,§ and§ iterations§ occur§
in§ hours…§ maybe§ even§ minutes.§ Their§ strategic§ focus§ on§ measuring§ their§
internal§ strengths§ and§ weaknesses,§ as§ well§ as§ their§ external§ opportunities§ and§
threatens§ is§ paramount§ to§ their§ ability§ to§ succeed§ in§ their§ area§ of§ software§
development.§ If§ they§ aren’t§ paying§ attention,§ they§ will§ get§ passed§ by§ a§
competitor.§ n§ my§ work§ experience§ the§ following§ statement§ that§ organizations§
differ§ from§ each§ other§ in§ a§ SWOT§ analysis§ would§ be§ true.§ The§ SWOT§
analysis§ stands§ for§ strengths,§ weaknesses,§ opportunities,§ and§ threats.§ Taking§ it§ a§
further§ is§ the§ breakdown§ of§ the§ strength§ and§ weakness§ that§ can§ be§ controlled§
within§ organization§ internally.§ The§ opportunities§ and§ threats§ expand§ out§ to§
external§ influences§ with§ consideration§ of§ positive§ options§ and§ a§ negative§ effect§
with§ a§ threat.For§ example,§ the§ real-world§ strength§ in§ cable§ business§ is§ the§
direct§ sales§ employee§ as§ the§ company’s§ strongest§ asset.§ The§ weaknesses§ in§ the§
company§ would§ be§ considered§ the§ amount§ of§ debt§ they§ are§ holding.§ As§ it§ was§
discovered§ during§ the§ pandemic§ was§ the§ opportunity§ trends§ that§ positively§ affect§
the§ cable§ industry.§ If§ you§ were§ not§ aware§ there§ is§ a§ strategy§ from§ some§
shifty§ individuals§ that§ work§ for§ the§ competitors.§ Their§ job§ is§ the§ act§ of§
poaching§ experienced§ skilled§ technicians§ offering§ high§ scale§ of§ pay§ for§ the§ short-
term§ is§ ongoing§ threats.§ § An§ organization§ would§ need§ to§ identify§ areas§ that§
are§ critical§ to§ the§ success§ of§ the§ business.§ This§ would§ be§ the§ investment§ of§
the§ employee.§ Without§ the§ skilled§ employee§ the§ success§ factors§ of§ the§ business§
plan§ will§ lean§ to§ the§ competitor’s§ advantage.§ Yes§ I§ believe§ each§ company§ will§
have§ different§ places§ where§ they§ will§ need§ improvement§ to§ have§ an§ competitive§
advantage§ using§ the§ SWOT§ analysis.§ SWOT§ a§ framework§ that§ allows§ managers§
to§ synthesize§ insight§ obtain§ from§ an§ internal§ analysis§ of§ the§ company's§ strength,§
weakness,§ opportunity§ and§ threats.§ The§ company§ I§ know§ focuses§ more§ on§ the§
strength§ than§ weakness.§ Strength:§ Workers§ that§ are§ okay§ with§ what§ is§ not§
working§ can§ be§ patient§ until§ what§ needs§ to§ be§ fix§ is§ done.§ Continue§ work§
harder§ to§ make§ sure§ numbers§ are§ made§ at§ the§ end§ of§ the§ day§ to§ keep§
competitive§ advantage§ over§ competitors.§ Weaknesses:§ Fix§ or§ update§ the§ computer§
system§ this§ will§ make§ it§ easier§ on§ employees§ to§ speak§ to§ customers§ and§ have§
a§ more§ meaningful§ conversation.§ Even§ though§ company§ (A)§ is§ still§ able§ to§
keep§ employees§ customer§ driven§ is§ because§ they§ know§ each§ call§ is§ a§ potential§
sale§ even§ if§ you§ cannot§ see§ the§ screen.§ Knowing§ you§ have§ a§ potential§ client§
on§ the§ line§ will§ motivate§ the§ employees§ to§ keep§ going.§ SWOT§ stands§ for§
Strengths,§ Weaknesses,§ opportunities§ and§ threats.§ Knowing§ that§ each§ company§
focuses§ on§ different§ areas§ of§ SWOT§ is§ important§ in§ their§ success.§ For§ example§
Amazon§ is§ getting§ a§ lot§ of§ “threats”§ lately§ because§ of§ their§ promised§ 2§ day§
shipping§ for§ prime§ members.§ Amazon§ can§ use§ these§ threats§ to§ help§ improve§
their§ overall§ company§ and§ satisfaction§ by§ their§ customers.§ Personally,§ I§ am§ a§
prime§ member§ and§ I§ understand§ how§ the§ past§ year§ two§ has§ been§ with§ delivery§
but§ I§ do§ not§ believe§ that§ the§ company§ should§ be§ advertising§ free§ two§ day§
shipping§ with§ prime§ membership.§ now§ the§ threats§ are§ people§ are§ saying§ they’re§
going§ to§ cancel§ the§ membership§ if§ this§ happens,§ what’s§ going§ to§ happen§ to§
the§ overall§ business§ as§ a§ whole?§ Will§ people§ stop§ using§ Amazon§ for§ their§
online§ shopping§ because§ of§ the§ two§ day§ shipping?§ Amazon§ has§ to§ focus§ on§
this§ specific§ area§ because§ it§ is§ what§ is§ downsizing,§ their§ overall§ revenue§ at§ the§
moment.§ Organizations§ differ§ from§ each§ other§ when§ placing§ importance§ on§ areas§
of§ SWOT§ analysis§ because§ not§ all§ organizations§ are§ the§ same.§ Strengths§ and§
weaknesses§ for§ one§ company§ may§ differ§ from§ another§ companies.§ The§ same§
would§ be§ for§ opportunities§ and§ threats.A§ CPA§ firm§ would§ focus§ more§ on§ their§
strengths.§ The§ value§ of§ what§ the§ firm§ can§ offer§ their§ clients§ above§ what§ other§
firms§ can§ offer§ is§ a§ strength§ as§ long§ as§ the§ employees§ that§ work§ there§ are§
capable§ and§ competent.§ Weaknesses§ in§ a§ CPA§ firm§ is§ whether§ the§ employees§
can§ perform.§ The§ firm§ might§ also§ focus§ on§ opportunity.§ To§ offer§ services§ that§
another§ firm§ cannot,§ makes§ for§ more§ opportunities§ for§ the§ company,§ however,§
if§ you§ cannot§ get§ employees§ to§ come§ work§ for§ you,§ either§ from§ the§ low§
unemployment§ or§ the§ challenges§ involved§ in§ the§ industry,§ opportunities§ become§
limited.§ Weaknesses§ in§ a§ CPA§ firm§ is§ not§ only§ finding§ good§ help,§ but§ legal§
repercussions§ of§ not§ filing§ a§ clients§ taxes§ correctly§ and§ costing§ them§ a§
financial§ strain§ can§ be§ a§ major§ issue§ for§ the§ firm.§ If§ the§ issue§ is§ taken§ to§
court,§ a§ CPA§ could§ lose§ their§ license§ and§ have§ the§ firm§ closed§ for§ good.§ If§
unemployment§ is§ high,§ people§ will§ try§ to§ do§ their§ taxes§ themselves§ than§ pay§
an§ outside§ firm.§ SWOT§ is§ a§ great§ tool§ in§ business§ because§ it§ gives§ a§ clear§
advantage§ by§ surveying§ internal§ and§ external§ factors§ in§ remaining§ abreast§ of§
consumer§ trends.§ In§ business,§ it’s§ essential§ to§ examine§ the§ position§ of§ the§
company§ within§ the§ market.§ SWOT§ analysis§ uncovers§ potential§ growth§
opportunities§ and§ possible§ vulnerabilities.§ Some§ businesses§ may§ zero§ in§ on§
potential§ threats§ whereas§ another§ may§ focus§ on§ opportunities.§ A§ company's§
primary§ focus§ might§ be§ strengths§ within§ SWOT§ by§ asking§ the§ following:§ Do§
our§ workers§ have§ the§ skills§ set§ or§ mastery§ that§ surpass§ our§ rivals’§ employees?§
Do§ we§ have§ high§ tech-technologies§ that§ our§ competitors§ don’t?§ Whereas§ a§
different§ company§ may§ focus§ on§ weaknesses§ like§ debt§ obligations,§ inadequately§
staffed,§ or§ client§ grievances.
With§ SWOT§ using§ acronyms§ I§ do§ believe§ it§ is§ important§ to§ understand§ and§ be§
knowledgeable§ what§ each§ letter§ represents§ especially§ in§ a§ business.§ A§ SWOT§
analysis§ is§ a§ strategic§ planning§ tool§ used§ to§ assess§ the§ strengths,§ weaknesses,§
opportunities,§ and§ threats§ of§ your§ business.§ Developing§ a§ SWOT§ analysis§ can§
help§ you§ look§ at§ your§ business§ in§ a§ new§ way§ and§ from§ different§ directions.§ It§
can§ also§ help§ you§ to§ create§ or§ fine-tune§ your§ business§ strategy§ and§ prioritize§
areas§ for§ business§ growth§ to§ achieve§ your§ business§ goals.
I§ do§ believe§ organizations§ can§ differ§ when§ applying§ the§ SWOT§ process§ because§
it§ is§ going§ to§ depend§ on§ the§ structure§ of§ the§ business,§ whether§ a§ foundation§
has§ been§ set§ in§ place,§ and§ whether§ the§ organization§ has§ a§ solid§ team§ in§ place§
to§ push§ the§ vision§ forward.§ If§ the§ team§ is§ not§ on§ the§ same§ page§ nor§ is§ there§
an§ understanding§ of§ what§ the§ ultimate§ goal§ is§ to§ accomplish,§ then§ it§ can§ be§
slightly§ difficult§ to§ apply§ any§ type§ of§ process.§
Zara§ one§ of§ the§ biggest§ clothing§ companies§ in§ the§ world§ is§ one§ of§ the§ top§ 3§
businesses§ listed§ on§ the§ SWOT§ Analysis§ examples.§ Zara§ is§ a§ brand§ owned§ by§
Inditex,§ among§ several§ others§ such§ as§ Bershka,§ Stradivarius,§ and§ Oysho.§ The§
following§ SWOT§ analysis§ applies§ to§ Zara:
Strengths
• Efficient§ manufacturing§ &§ delivery§ –§ Zara§ is§ one§ of§ the§ most§ efficient§
clothing§ companies§ in§ the§ world§ when§ it§ comes§ to§ all§ operational§
processes§ –§ manufacturing,§ delivery,§ supply§ chain,§ and§ logistics.§
Reportedly,§ the§ company§ needs§ just§ 1§ week§ to§ develop§ a§ new§ product§
and§ get§ it§ to§ all§ 2,259§ stores§ it§ has§ worldwide,§ compared§ to§ an§
industry§ average§ of§ 6§ months.§ This§ gives§ Zara§ a§ huge§ advantage§ when§
it§ comes§ to§ delivering§ new§ designs§ in§ record§ time.
• Competitive§ pricing§ –§ additionally,§ Zara§ also§ offers§ very§ competitive§
pricing§ for§ the§ variety§ and§ amount§ of§ products§ it§ offers.§ Its§ clothing§ is§
targeted§ at§ a§ middle-class§ audience,§ although§ it´s§ also§ true§ that§ the§
pricing§ is§ adapted§ to§ the§ characteristics§ of§ each§ market.§
• Strong§ global§ presence§ –§ As§ already§ mentioned,§ Zara§ has§ over§ 2,200§
stores§ across§ 96§ countries,§ positioning§ itself§ as§ a§ strong§ international§
brand§ with§ solid§ support§ (Inditex,§ with§ over§ 7,000§ stores).
• Fast§ reaction§ to§ new§ trends§ –§ the§ company§ is§ known§ for§ imitating§ high-
fashion§ trends,§ and§ it§ is§ extremely§ fast§ when§ it§ comes§ to§ spotting§ and§
replicating§ them§ for§ its§ products.§ They§ are§ very§ well-defined§ and§ make§
Zara§ stand§ out§ from§ competitors.§
Weaknesses
• Zero§ policy§ advertising§ –§ the§ company§ is§ famous§ for§ its§ zero§ policy§
advertising.§ This§ means§ that,§ instead§ of§ investing§ in§ Marketing§ and§
Communication§ actions,§ they§ use§ the§ money§ for§ opening§ new§ stores.§
Although§ this§ policy§ has§ some§ awesome§ benefits,§ I§ think§ that§ it´s§ also§ a§
very§ big§ weakness.§ The§ heavy§ digital§ advertising§ done§ by§ competitors§
can§ completely§ overshadow§ Zara§ in§ the§ long§ run.
• Limited§ product§ stock§ –§ because§ Zara§ delivers§ fashion§ pieces§ in§ record§
time,§ they§ don´t§ produce§ as§ much§ stock§ as§ other§ companies§ would.§ This§
is§ not§ great§ news§ for§ customers§ who§ often§ love§ a§ piece,§ and§ it§ is§
already§ out§ of§ stock§ –§ or§ simply§ not§ in§ the§ size§ they§ need.
• Controversies§ –§ Additionally,§ the§ company§ is§ also§ involved§ in§ multiple§
controversies§ revolving§ around§ child§ labor§ and§ paying§ under§ minimum§
wage.§ As§ people§ are§ getting§ more§ and§ more§ conscious§ about§ these§
topics,§ these§ controversies§ are§ doing§ a§ lot§ of§ harm§ to§ the§ company´s§
reputation.§
• High§ fashion§ imitation§ –§ Zara§ is§ known§ to§ imitate§ fashion§ trends.§ This§
means§ that§ they§ are§ not§ a§ trendsetter,§ and§ they§ do§ not§ offer§ a§ lot§ of§
unique§ and§ creative§ pieces§ designed§ exclusively§ by§ them.
Opportunities
• Growing§ demand§ for§ high§ fashion§ –§ currently,§ there§ is§ a§ growing§
demand§ for§ clothing§ that§ looks§ high§ fashion§ but§ doesn´t§ cost§ thousands§
of§ dollars§ for§ a§ single§ piece.§ This§ is§ a§ great§ opportunity§ for§ Zara,§
which§ does§ precisely§ what§ people§ want§ –§ selling§ high-fashion§ styles§ for§
affordable§ prices.
• Fast§ fashion§ –§ as§ customer§ behavior§ is§ changing,§ people§ get§ bored§ with§
everything§ faster§ than§ ever.§ And§ this§ is§ true§ for§ fashion§ as§ well§ –§
clothes§ that§ people§ would§ wear§ for§ months§ and§ years§ now§ get§
substituted§ with§ new§ pieces§ much§ more§ often.§ This§ is§ another§ excellent§
opportunity§ for§ Zara§ as§ the§ so-called§ “fast§ fashion§ is§ on§ the§ rise”.
• Market§ growth§ –§ According§ to§ Statista,§ the§ growth§ of§ the§ apparel§ market§
is§ steadily§ increasing§ by§ 5-6%§ every§ year,§ which§ is§ great§ news§ for§
clothing§ companies§ like§ Zara.
Threats
• Growing§ competition§ –§ the§ increasing§ demand§ for§ fashion§ and§ apparel§
also§ means§ that§ competition§ is§ growing§ as§ well.§ With§ huge§ online§
providers§ taking§ over§ the§ Internet§ such§ as§ ASOS,§ Fashion§ Nova,§ Shein,§
and§ others,§ Zara´s§ popularity§ is§ becoming§ threatened§ by§ other§ companies.§
Especially§ because§ these§ providers§ offer§ products§ from§ multiple§ brands§ in§
the§ same§ place.
• Increasing§ costs§ –§ another§ tendency§ that§ could§ impose§ a§ significant§ threat§
for§ Zara§ is§ the§ increasing§ costs§ for§ production§ and§ raw§ material.§ Which,§
as§ a§ consequence,§ will§ probably§ reduce§ its§ revenue§ and§ profit§ margins.§
Especially§ considering§ the§ fact§ the§ prices§ are§ already§ relatively§ low!§ For§
now,§ Zara§ has§ managed§ to§ develop§ a§ well-integrated§ and§ efficient§ supply§
chain§ that§ keeps§ the§ cost§ of§ raw§ materials§ low.§ But§ this§ might§ not§ last§
forever,§ especially§ if§ the§ prices§ keep§ rising.
• Regulatory§ threats§ –§ the§ business§ industry§ is§ gradually§ getting§ more§ and§
more§ regulated.§ On§ a§ global§ scale,§ governments§ and§ legal§ agencies§ are§
regulating§ all§ kinds§ of§ sectors§ and§ businesses,§ and§ the§ fashion§ market§ is§
not§ an§ exception.§ This§ includes§ labor,§ quality,§ customer§ services,§ and§
many§ other§ aspects§ of§ the§ industry.§ All§ of§ these§ regulations§ might§
eventually§ harm§ Zara.
SWOT§ analysis§ is§ a§ strategic§ planning§ and§ strategic§ management§ technique§ used§
to§ help§ a§ person,§ business§ or§ organization§ to§ identify§ strengths,§ weaknesses,§
opportunities§ and§ threats.§ I§ think§ that§ SWOT§ analysis§ could§ be§ used,§ and§ they§
differ§ depending§ on§ what§ type§ of§ organization§ uses§ it.§ Some§ could§ be§ totally§
different§ kind§ of§ business§ but§ they§ may§ have§ one§ thing§ in§ common§ so§ they§
might§ need§ to§ do§ a§ SWOT§ analysis§ to§ see§ what§ their§ outcome§ is.§ an§ example§
would§ be§ Home§ Depot§ conducted§ a§ SWOT§ analysis,§ creating§ a§ balanced§ list§ of§
its§ internal§ advantages§ and§ disadvantages§ and§ external§ factors§ threatening§ its§
market§ position§ and§ growth§ strategy.§ High-quality§ customer§ service,§ strong§ brand§
recognition,§ and§ positive§ relationships§ with§ suppliers§ were§ some§ of§ its§ notable§
strengths,§ where§ a§ constricted§ supply§ chain,§ interdependence§ on§ the§ U.S.§ market,§
and§ a§ replicable§ business§ model§ were§ listed§ as§ its§ weaknesses.
Closely§ related§ to§ its§ weaknesses,§ Home§ Depot's§ threats§ were§ the§ presence§ of§
close§ rivals,§ available§ substitutes,§ and§ the§ condition§ of§ the§ U.S.§ market.§ It§
found§ from§ this§ study§ and§ other§ analysis§ that§ expanding§ its§ supply§ chain§ and§
global§ footprint§ would§ be§ key§ to§ its§ growth.§ I§ believe§ that§ organization§ do§
differ§ from§ each§ other§ when§ placing§ importance§ on§ areas§ of§ the§ SWOT§
analysis.§ SWOT§ is§ there§ to§ help§ identify§ organization§ strengths§ and§ weaknesses§
as§ well§ as§ opportunities§ and§ threats§ that§ the§ organization§ might§ face;§ it§ stands§
for§ Strength,§ Weakness,§ Opportunity§ and§ Threat.§ When§ using§ SWOT§ analysis§ on§
said§ different§ organization§ we§ are§ looking§ for§ their§ strengths,§ weaknesses§ and§
other§ things§ that§ will§ assist§ on§ comparing§ the§ results§ so§ that§ we§ can§ gain§
understandings§ into§ how§ they§ can§ improve§ their§ business§ performance.§ For§
example,§ a§ company§ called§ PG&E,§ this§ company§ though§ it§ has§ great§ strength§
with§ the§ size§ and§ almost§ monopoly§ over§ the§ Northern§ California§ area§ still§
focuses§ strongly§ on§ the§ weaknesses§ of§ its§ opposition.§ This§ organization§ has§ an§
issues§ with§ uphill§ battles§ on§ environmental§ aspects§ affecting§ the§ ability§ to§
provide§ service§ to§ its§ customers.§ This§ being§ said§ the§ focus§ on§ how§ to§
strengthen§ the§ system§ in§ order§ to§ counteract§ the§ environmental§ changes§
throughout§ the§ state§ are§ a§ way§ they§ can§ eventually§ turn§ their§ weaknesses§ into§
strengths§ while§ developing§ stronger§ resilience§ to§ the§ risks§ associated§ within§ the§
utility§ industry.§ SWOT§ analysis§ can§ be§ used§ for§ all§ types§ of§ events§ and§ in§
any§ type§ of§ organization.§ Just§ as§ the§ learning§ activity§ in§ the§ weekly§
assignments§ uses§ the§ swot§ analysis§ to§ stage§ a§ family§ picnic.§ Now§ as§ used§ in§
the§ planning§ process§ of§ the§ family§ gathering§ an§ organization§ may§ also§ use§ the§
same§ process§ to§ basically§ gather§ facts§ that§ have§ obstacles.§ SWOT§ analysis§ uses§
positives§ to§ correct§ the§ negatives.§ Organizations§ can§ be§ alike§ in§ operations,§ but§
may§ have§ different§ swot§ analysis.§ Two§ such§ organizations§ such§ as§ a§ tire§
company§ and§ a§ tire§ recycling§ company§ may§ conduct§ different§ analysis§ based§ on§
knowledge§ of§ the§ Strengths,§ Weaknesses,§ Opportunities§ and§ Threats.§ Although§
both§ companies§ are§ based§ on§ tires§ the§ tire§ recycling§ company§ doesn't§ sell§ tires.§
The§ tire§ company§ may§ have§ to§ analyze§ the§ fact§ that§ it§ must§ sale§ tires§ to§
recycle§ tires.§ The§ swot§ analysis§ will§ differ§ as§ the§ need§ for§ consumers§ to§
purchase§ new§ tires§ so§ that§ they§ may§ collect§ the§ old§ tires§ to§ be§ recycled§ at§
the§ recycling§ company.§ The§ strength§ of§ the§ consumer§ purchase§ is§ what§ the§ tire§
company§ will§ have§ to§ focus§ on§ so§ that§ sales§ may§ occur§ giving§ opportunity§ to§
recycle.§ The§ recycle§ company§ is§ only§ interested§ in§ the§ ability§ to§ recycle§ tires§
as§ they'll§ obtain§ material§ from§ the§ tire§ sales§ companies,§ people§ that§ know§ of§
the§ tire§ recycling§ to§ avoid§ the§ cost§ at§ the§ tire§ sales§ shop.§ The§ weakness§ is§
the§ not§ selling§ of§ tires§ for§ the§ tire§ company.§ The§ opportunity§ is§ the§
convenience§ of§ the§ consumer§ to§ accept§ the§ cost§ of§ convenience§ so§ that§ the§
tire§ sales§ company§ will§ recycle§ the§ old§ tire§ of§ the§ consumer.§ The§ threat§ is§ the§
consumer§ not§ accepting§ the§ cost§ of§ recycling§ at§ the§ tire§ company§ and§ wants§
to§ take§ the§ tires§ to§ the§ recycle§ company§ on§ their§ own.§ So§ now§ the§ tire§ sales§
company§ usually§ makes§ it§ worth§ the§ four§ dollar§ cost§ to§ recycle§ by§ waiving§
the§ cost§ to§ the§ consumer§ eliminating§ the§ threat.§ organizations§ do§ differ§ from§
each§ other§ when§ placing§ importance§ on§ areas§ of§ the§ SWOT§ analysis.§ SWOT§
refers§ to§ strengths,§ weakness,§ opportunities,§ threats§ where§ Strength§ gives§ an§
edge§ to§ the§ organization§ over§ its§ competitors.§ The§ four§ factors§ are§ not§ always§
equally§ relevant§ or§ important§ for§ an§ organization§ while§ formulating§ a§ strategy.§
It§ guides§ you§ to§ build§ on§ what§ you§ do§ well,§ address§ what§ you're§ lacking,§
seize§ new§ openings,§ and§ minimize§ risks.§ Apply§ a§ SWOT§ Analysis§ to§ assess§
your§ organization's§ position§ before§ you§ decide§ on§ any§ new§ strategy.§ Getting§ a§
clear§ and§ realistic§ view§ of§ your§ internal§ environment§ will§ help§ you§ identify§
ways§ to§ better§ satisfy§ clients,§ achieve§ your§ objectives§ and§ strengthen§ weaker§
areas§ that§ have§ an§ impact§ on§ your§ performance.§ To§ tie§ in§ my§ real§ world§
example§ with§ my§ subject§ for§ our§ homework§ is,§ does§ Netflix§ use§ SWOT§
analysis?§ The§ answer§ is,§ yes.§ Netflix's§ SWOT§ analysis§ examines§ the§ company's§
strengths§ and§ weaknesses,§ as§ well§ as§ its§ potential§ growth§ strategy§ and§ market§
possibilities§ and§ threats.§ It§ has§ huge§ benefits§ in§ becoming§ the§ best§ in§ the§
world's§ leading§ streaming§ business.§ The§ corporation§ can§ make§ use§ of§ the§
opportunity§ to§ counteract§ market§ risks§ and§ maintain§ its§ growth.§ While§ the§ two§
companies§ may§ be§ in§ entirely§ different§ fields§ and§ have§ other§ business§ models,§
they§ will§ share§ some§ business-related§ aspects§ of§ their§ operations.§ No§ matter§
how§ they§ perform§ their§ work,§ they§ have§ customers§ and§ employees,§ offer§ goods§
or§ services§ for§ sale,§ and§ have§ to§ carry§ out§ their§ work§ to§ generate§ value.§ By§
performing§ a§ SWOT§ analysis§ on§ these§ common§ business§ aspects,§ looking§ at§
strengths,§ weaknesses,§ opportunities,§ and§ threats,§ you§ can§ compare§ the§ results§
for§ any§ two§ companies§ and§ obtain§ insights§ into§ how§ they§ can§ each§ improve§
their§ business§ performance§ believe§ companies§ like§ Amazon,§ Walmart,§ and§ the§
franchised§ will§ place§ more§ importance§ on§ one§ area§ of§ the§ SWOT§ analysis§
compared§ to§ another§ area§ more§ than§ the§ smaller§ companies§ like§ small§
businesses.§ the§ bibber§ companies§ might§ focus§ more§ on§ strengths§ than§ the§
others.§ Comparing§ the§ two§ tables§ shows§ how§ the§ two§ companies§ can§ use§
different§ combinations§ of§ internal§ and§ external§ factors§ to§ chart§ improvements§ in§
their§ operations.§ Similar§ strengths§ combined§ with§ different§ opportunities§ may§ lead§
to§ varying§ strategies.§ Comparing§ threats§ may§ result§ in§ ideas§ of§ various§ actions§
that§ the§ two§ companies§ could§ take§ to§ address,§ avoid,§ or§ remove§ their§ threats.§
A§ study§ of§ similarities§ and§ differences§ can§ give§ insights§ into§ how§ each§
company§ can§ implement§ effective§ change§ and§ make§ improvements.
While§ SWOT§ is§ a§ highly§ popular§ and§ effective§ too,§ it§ is§ certainly§ not§ the§
only§ tool§ available§ to§ managers.§ The§ book§ does§ mention§ a§ few,§ but§ I§ would§
like§ to§ draw§ your§ attention§ to§ a§ tool§ that§ I§ found§ effective§ in§ the§ past.§ It§ is§
called§ the§ Five§ Forces§ Analysis.§ The§ tool§ is§ named§ after§ the§ 5§ Forces§ model§
developed§ by§ Michael§ Porter.§ What§ I§ like§ about§ this§ tool§ is§ that§ analyst§ can§
assess§ each§ force§ using§ quantitative§ measures§ that§ can§ align§ to§ either§ revenue§
or§ costs.§ To§ explain§ this§ further,§ let§ me§ provide§ you§ with§ an§ easy§ formula§
developed§ by§ Michael§ Porter§ to§ compute§ profit.§
Profit§ =§ Revenue§ -§ Costs§
§
1.§ Supplier§ Power§ -§ The§ more§ powerful§ a§ supplier§ gets,§ the§ higher§ their§ costs§
will§ be.§ In§ the§ formula§ above,§ if§ revenues§ remain§ the§ same§ and§ costs§
increases,§ profits§ will§ be§ lower.§
§
2.§ Buyer§ power§ -§ Let’s§ face§ it,§ buyers§ have§ options.§ Whether§ it§ is§ a§ nearby§
competitor§ or§ shopping§ online,§ buyers§ can§ opt§ to§ change§ who§ they§ buy§ from§
quite§ easily.§ Because§ of§ this,§ companies§ must§ develop§ marketing§ strategies§ to§
keep§ their§ customers§ and§ attract§ new§ ones.§ This§ force§ affects§ revenues.§
§
3.§ Competitive§ rivalry§ -§ Saturated§ industries§ compete§ to§ attract§ customers.§ This§
force§ affects§ how§ many§ customers§ the§ organization§ has,§ thus§ it§ has§ a§ direct§
impact§ to§ revenues.§
§
4.§ Threat§ of§ a§ new§ entrant§ -§ This§ is§ related§ to§ competitive§ rivalry.§ What§ sets§
it§ apart§ is§ whether§ or§ not§ entry§ to§ a§ specific§ market§ is§ easy§ or§ not.§ If§ the§
cost§ and§ effort§ to§ enter§ a§ market§ is§ low,§ the§ risk§ of§ new§ entrants§ increases,§
thus§ it§ must§ be§ assessed§ constantly.§
§
5.§ Threat§ of§ substitution§ -§ This§ is§ somewhat§ related§ to§ buyer§ power.§ Customers§
may§ find§ that§ substituting§ a§ service§ or§ product§ for§ another§ option§ that§ is§
cheaper§ and§ more§ effective§ is§ worth§ the§ change.§ This§ will§ affect§ revenue.§
§
I§ believe§ that§ organization§ do§ differ§ from§ each§ other§ when§ placing§ importance§
on§ areas§ of§ the§ SWOT§ analysis.§ SWOT§ is§ there§ to§ help§ identify§ organization§
strengths§ and§ weaknesses§ as§ well§ as§ opportunities§ and§ threats§ that§ the§
organization§ might§ face;§ it§ stands§ for§ Strength,§ Weakness,§ Opportunity§ and§
Threat.§ When§ using§ SWOT§ analysis§ on§ said§ different§ organization§ we§ are§
looking§ for§ their§ strengths,§ weaknesses§ and§ other§ things§ that§ will§ assist§ on§
comparing§ the§ results§ so§ that§ we§ can§ gain§ understandings§ into§ how§ they§ can§
improve§ their§ business§ performance.§ The§ example§ that§ I§ have§ is§ a§ company§
called§ Baldwin§ Risk§ Partners;§ they§ are§ a§ big§ insurance§ firm§ that§ have§
monopolized§ the§ insurance§ department.§ They§ have§ several§ insurance§ companies§
working§ under§ them§ and§ are§ striving§ to§ buy§ out§ more.§ In§ order§ to§ keep§ them§
from§ going§ under§ they§ use§ SWOT§ to§ find§ out§ their§ strength§ and§ weaknesses.§
For§ example§ some§ firms§ might§ be§ more§ suitable§ for§ one§ type§ of§ insurance§
rather§ than§ the§ others§ so§ they§ make§ sure§ that§ that§ firm§ focus§ more§ on§ that§
type§ instead§ of§ the§ other§ ones.§ SWOT§ analysis§ within§ any§ organization§ is§ a§
key§ component§ when§ it§ comes§ to§ the§ strategic§ understanding§ of§ a§ companies§
strengths,§ weaknesses,§ opportunities,§ and§ threats.§ Though§ many§ organizations§ can§
differ§ on§ how§ they§ utilize§ this§ analysis§ I§ believe§ that§ there§ is§ a§ huge§
difference§ between§ organizations§ when§ it§ comes§ to§ the§ importance§ on§ one§
section§ or§ another.§ There§ are§ many§ factors§ that§ come§ into§ play,§ some§
organizations§ take§ an§ approach§ based§ solely§ on§ risks§ and§ rewards§ while§ others§
take§ a§ strategic§ approach§ to§ eliminate§ the§ amount§ of§ risks§ within§ any§ plan.§
The§ real§ world§ example§ I§ am§ going§ to§ utilize§ is§ with§ a§ company§ called§
PG&E,§ this§ company§ though§ it§ has§ great§ strength§ with§ the§ size§ and§ almost§
monopoly§ over§ the§ Northern§ California§ area§ still§ focuses§ strongly§ on§ the§
weaknesses§ of§ its§ opposition.§ This§ organization§ has§ an§ issues§ with§ uphill§ battles§
on§ environmental§ aspects§ affecting§ the§ ability§ to§ provide§ service§ to§ its§
customers.§ This§ being§ said§ the§ focus§ on§ how§ to§ strengthen§ the§ system§ in§
order§ to§ counter§ act§ the§ environmental§ changes§ throughout§ the§ state§ are§ a§ way§
they§ can§ eventually§ turn§ their§ weaknesses§ into§ strengths§ while§ developing§
stronger§ resilience§ to§ the§ risks§ associated§ within§ the§ utility§ industry.§ I§ do§
believe§ that§ organizations§ differ§ from§ one§ another§ when§ placing§ importance§ on§
areas§ of§ the§ SWOT§ analysis.§ SWOT§ analysis§ is§ a§ strategic§ planning§ and§
management§ technique§ used§ to§ help§ an§ organization§ identify§ strengths,§
weaknesses,§ opportunities,§ and§ threats§ related§ to§ business§ competition.§ The§ four§
factors§ are§ not§ always§ equally§ relevant§ or§ important§ for§ an§ organization§ while§
coming§ up§ with§ a§ strategy.§ SWOT§ analysis§ will§ help§ you§ seize§ opportunities§
and§ prepare§ effective§ strategies.§ Organizations§ place§ different§ importance§ on§
different§ areas§ of§ the§ SWOT§ analysis§ and§ that§ itself§ makes§ the§ organizations§
different§ from§ each§ other.§ I§ am§ going§ to§ use§ Coca-Cola§ for§ a§ real§ world§
example§ of§ placing§ more§ importance§ on§ one§ area§ of§ the§ SWOT§ analysis§
compared§ to§ another.§ They§ placed§ more§ importance§ on§ the§ strengths§ of§ their§
company§ than§ their§ threats.§ Coca-Cola§ strength§ is§ its§ brand§ name§ which§ is§ an§
internal§ advantage§ of§ the§ company.§ With§ Coca-Cola§ being§ the§ largest§ beverage§
company§ globally,§ it§ is§ easy§ for§ the§ company§ to§ refer§ consumers§ to§ its§ social§
media§ platform.§ I§ also§ believe§ they§ had§ a§ greater§ chance§ at§ success§ because§
of§ they're§ strengths§ being§ most§ important.§ A§ SWOT§ analysis§ of§ a§ strengths,§
weaknesses,§ opportunities§ and§ threat§ analysis§ can§ and§ do§ differ§ from§
organization§ to§ organization.§ Usually§ presented§ in§ a§ four-quadrant§ square§ and§
labeled§ accordingly.§ The§ object§ is§ to§ have§ a§ layout§ of§ what§ the§ intent§ of§ the§
company's§ desire§ is§ to§ achieve.§ Whether§ it§ is§ product,§ targeted§ market,§ features,§
etc.§ It§ is§ important§ to§ make§ this§ clear§ and§ those§ that§ are§ participating§ are§
taking§ notes.§ Keeping§ the§ layout§ cross-functional§ is§ also§ important.§ The§ audience§
should§ have§ some§ sort§ of§ understanding§ of§ what§ others§ in§ the§ company§ do§
and§ are§ able§ to§ complete§ those§ tasks§ if§ necessary.§ The§ inference§ that§ the§
consumer§ has§ of§ a§ company§ in§ totality§ or§ knowledge§ of§ the§ founder,§ has§ no§
real§ impact§ to§ its§ strengths.§ Once§ the§ consumer§ buys§ into§ the§ culture,§ there§ is§
a§ good§ chance§ that§ the§ consumer§ will§ be§ life-long.§ The§ weakness§ and§ the§
threats§ will§ get§ more§ of§ the§ attention.§ However,§ this§ should§ not§ be§ the§ case§
internally.§ We§ have§ seen§ this§ recently§ with§ Elon§ Musk§ and§ the§ Tesla§ umbrella.§
Although§ there§ are§ many§ companies§ under§ the§ umbrella,§ the§ focus§ I§ am§
suggesting§ is§ what§ has§ been§ done§ with§ the§ new§ acquisition§ of§ twitter,§ the§
OpenAI§ and§ SpaceX.§ Though§ he§ secured§ a§ contract§ from§ NASA§ for§ SpaceX§
for§ 1.5§ billion§ dollars,§ this§ has§ nothing§ to§ do§ with§ space§ exploration,§ even§ if§
it§ is§ the§ actual§ name§ of§ the§ company§ he§ owns.§ It§ is§ for§ tourism,§ which§ he§
will§ capitalize§ on,§ but§ as§ of§ recently§ the§ investors§ in§ Tesla§ electric§ cars§ are§ in§
court§ to§ figure§ out§ how§ he§ is§ spending§ on§ somewhat§ successful§ flights§ but§ are§
weighing§ the§ burden§ of§ cars§ catching§ fire§ and§ autopilots§ steering§ causing§
lawsuits.§ This§ is§ opportunity.§ Disneyland§ in§ the§ sky§ is§ the§ objective.§ Some§
questioned§ the§ buyout§ of§ twitter§ and§ the§ reasoning§ behind§ a§ move§ as§ such,§
but§ no§ one§ considered§ OpenAI.§ OpenAI§ is§ in§ direct§ competition§ with§ ChatGPT§
and§ his§ moving§ on§ with§ twitter§ gave§ him§ a§ direct§ source§ to§ one§ of§ the§ most§
informative§ platforms§ will§ spearhead§ his§ agenda.§ This§ is§ strength.§ The§ weakness§
is§ the§ skeleton§ crew§ he§ dismissed§ in§ the§ process.§ He§ has§ suggested§ he§ will§
step§ down§ and§ place§ anything§ in§ his§ seat,§ this§ eliminates§ the§ threats.§ In§ my§
opinion,§ there§ is§ no§ weakness§ in§ the§ sacrifice§ of§ the§ queen§ to§ save§ the§ king§
in§ chess,§ while§ everyone§ else§ plays§ checkers.§
