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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 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. 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. 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