Introduction Of Swot Analysis Marketing Essay

Introduction Of Swot Analysis Marketing renderSWOT abstract is approach for auditing a business organization and its milieu where it operates. Generally SWOT analysis is the initial stage of planning that helps insurance policy makers and marketplaceers to identify and focus on key issues. The acronym for SWOT is lastingnesss, weaknesses, opportunities, and threats. Strengths and weaknesses be native SWOT federal agents (MarketingTeacher.Com, 2013). Opportunities and threats are external SWOT factors. A strength is considered as positive inwrought factor. A weakness is considered as a blackball internal factor. Similarly, an opportunity is considered as a positive external factor and finally a threat is known as a forbid external factor (Ireland, Hoskisson, Hitt, 2008). Apart from understanding the business environment, another consort of SWOT analysis is to turn companionships weaknesses into strengths and threats into opportunities. Moreover it al unkepts management to integrate internal strengths with external opportunities. Theoretically SWOT analysis is that simple. It is expected from SWOT analysis that the outcome should create entertain for customers and help to get competitive benefit (MarketingTeacher.Com, 2013).CUsersKhayyamDesktopSWOT_MAS_NaifSWOT intro.jpgFigure SWOT analysis framework, Data Source (MarketingTeacher.Com, 2013)3.1 StrengthsStrengths continue to those characteristics of a particular business which are unique and give the federation advantage over competitors (Ireland, Hoskisson, Hitt, 2008). For guinea pig, a party might have specialist market expertise or the federation make ups new and revolution mathematical product and services e.g. Apple I phone, the company might be strategically located, the company whitethorn produce best quality and top value for money products or services e.g. Rolls Royce cars, or any other purview of business which is unique and hard to imitate for competitors would be conside red as an strength of the company. If the company has special capabilities, powerful human resource e.g. Google employees, Unique interchange Point e.g. Google Nexus 7- best hardware releases on a oral contraceptive pill PC, powerful financial position e.g. Wal-Mart financial capabilities, economy of scale and orbiculate reach e.g. McDonalds and KFC etc. above mentioned qualities wad be termed as strengths of a company. Each of these strengths creates price inelasticity and consecrate loyal customer base (MarketingTeacher.Com, 2013) (Ireland, Hoskisson, Hitt, 2008).3.2 WeaknessesWeaknesses resuscitate to those characteristics that creates completive disadvantage situation for the business (Ireland, Hoskisson, Hitt, 2008). For example a company may produce good quality products but due to lack of marketing expertise the company may suffer e.g. in February 2011, HOME storage had to close operation in China (Bhasin, 2012), the company may disco biscuit undifferentiated produc ts or services e.g. PC hardware market, the company may be located in un homogeneous location, the company may produce poor quality goods or services e.g. Chinese brand-less electronics companies which produces inferior goods, modify reputation e.g. Dominos you tube scandal 2009 (Clifford, 2009). These prejudicial internal factors can be termed as weaknesses of a company. These factors often play a negative role in companys performance and achievements. A company should continuously essay to convert its weaknesses to strengths. Sometimes big successful businesses suffer due to inappropriate market strategies and damaged reputations (MarketingTeacher.Com, 2013) (Ireland, Hoskisson, Hitt, 2008).3.3 OpportunitiesOpportunities are positive external factors which a company can capitalize to gain competitive advantages (Ireland, Hoskisson, Hitt, 2008). For example a company can explore a developing market such as internet e.g. UK retailer predicted that online shopping would be a po pular plectrum in near future so they respond to this change of fate (CIPS 2010). Mergers, joint ventures or strategic alliances help a company to generate bigger financial resources and allow the companies to explore more markets e.g. the merger of GlaxoSmithKline plc (GSK), the company can find out new market segments that offer greater profits e.g. McDonalds targeted children to market its product which was unique marketing strategy at that time. The company can explore a new international market for further expansion. These external factors are known as opportunities which allow a company to integrate its internal strengths with external opportunities for greater profitability (MarketingTeacher.Com, 2013) (Ireland, Hoskisson, Hitt, 2008).3.4 ThreatsThreats are considered those external elements which may generate trouble for the business. A company should enforce its strengths or try to build new strengths to minimize the risks of external threats. For example a new competit or in the existing market e.g. appetiser of Google in electronics gadget manufacturing market possesses threats for existing market leaders like Samsung, Apple or HTC. Price war is a common invest in extreme competitive businesses where switching cost is very low e.g. fast food industry. When a competitor launches new and innovative products that possesses threats for others e.g. innovation of Windows by Microsoft. Additionally competitors access to superior supply channels, financial damage situation new tax and legislative changes are considered as threats (MarketingTeacher.Com, 2013) (Ireland, Hoskisson, Hitt, 2008).BibiliographyBhasin, K. (2012). theatre Depot Gives Up And Closes The Last Of Its Big Box Stores In China. Retrieved 3 14, 2013, from Business Insider http//www.businessinsider.com/home-depot-gives-up-and-closes-the-last-of-its-big-box-stores-in-china-2012-9CIPS. (2010). Case Study Analysis Marks Spencer (MS). Retrieved 3 14, 2013, from CIPS http//profex.co.uk/s ecureassets/files/MS Analysis.pdfClifford, S. (2009). Video Prank at Dominos Taints Brand. Retrieved 3 14, 2013, from The New York generation http//www.nytimes.com/2009/04/16/business/media/16dominos.html?_r=0Ireland, R. D., Hoskisson, R. E., Hitt, M. A. (2008). The Management of Strategy Concepts and Cases. Canada Cengage- Learning.MarketingTeacher.Com. (2013). SWOT Analysis. Retrieved 3 14, 2013, from MarketingTeacher.Com http//www.marketingteacher.com/wordpress/swot-analysis/