Complete 4 page APA formatted essay: SWOT Analysis as a Strategic Management Tool.
Download file to see previous pages…
The next section will tackle SWOT analysis’ advantages and limitations. The paper will conclude with its findings.
SWOT (Strengths, Weaknesses, Opportunities, Threats) analysis is one of the most widely utilized strategic management tools in assessing the position of a business entity. This analysis is an integration of the results of other tools like the PESTEL analysis, industry analysis, and internal analysis. The company’s strengths and weaknesses are derived from internal analysis while the PESTEL and industry analyses provide the required information to ascertain the opportunities and threats specific to the company.
According to Thomson (2004), a company’s strength is “something a company is good at doing or a characteristic that gives it enhanced competitiveness.” A strength can take several forms like a skill or important expertise, valuable physical assets valuable human assets, valuable intangible assets, competitive capabilities, an achievement or attribute that puts the company in a position of market advantage, and alliances or cooperative ventures. Meanwhile, a weakness denotes to a something that a company lacks or is not good at doing relative to its competitors and puts the company in a disadvantage. …
tity: “deficiencies in competitively important skills or expertise or intellectual capital of one kind or another. lack of competitively important physical, organizational or intangible assets. and missing or weak competitive capabilities in key areas” (Thomson 2002). Opportunities are essential external factors, which can propel the business entity into higher profitability. However, distinction should be made in order to determine whether an opportunity is an industry or company opportunity. While company opportunity is an opportunity specific to a business institution, industry opportunity needs to be thoroughly evaluated in order to assess if a company has the required resources to take advantage of the opportunity. Threats are external factors which causes threats to a business entity’s profitability and competitive well-being.
The following table shows the SWOT analysis as applied to the large computer manufacturer Dell, Inc.
large market share
strong brand equity
no inventory buildup
direct to customer business model
total command of supply chain
strategic alliance with suppliers
no proprietary technology
high dependence on component suppliers
strong potential markets in Europe, China , and India
low costs and advanced technology
growth in business, education, and government markets
more intense rivalry
high customer bargaining power
SWOT Analysis: A Critique
SWOT analysis is indeed a useful tool in determining the internal capability and incapability and the external forces that affects the operation and profitability of a business organization.
Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.
You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.Read more
Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.Read more
Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.Read more
Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.Read more
By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.Read more
Let us help you get a good grade on your paper. Get professional help and free up your time for more important courses. Let us handle your;