Swot Analysis

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SWOT Analysis By Stacy Collett (Jul. 19, 1999) In order to swat the competition you need to understand SWOT. SWOT stands for Strengths, Weaknesses, Opportunities and Threats. It 's a way to analyze a company 's or a department 's position in the market in relation to its competitors. The goal is to identify all the major factors affecting competitiveness before crafting a business strategy. SWOT Breakdown SWOT identifies the internal and external factors that affect an organization. Here’s the breakdown of SWOT by internal and external variables: Internal factors (Strengths and weaknesses) • A corporate structure, culture and resources • Shareholders • Customers • Competitors External factors (Opportunities…show more content…
Although some companies might think the move was excessive considering 80% of customers have no problems, Delta believed customer service was an important area for increasing market share and that competitors could pose a threat if Delta didn 't address the problem. Another example is Dell Computer Corp., which is a great example of how an IT company can use a SWOT analysis to carve out a strong business strategy, according to Glazer. Dell recognized that its strength was selling directly to consumers and keeping its costs lower than those of other hardware vendors. As for weaknesses, the company acknowledged that it lacked solid dealer relationships. Identifying opportunities was an easier task. Dell looked at the marketplace and saw that customers increasingly valued convenience and one-stop shopping and that they knew what they wanted to purchase. Dell also saw the Internet as a powerful marketing tool. On the threats side, Dell realized that competitors like IBM and Compaq Computer Corp. had stronger brand names, which put Dell in a weaker position with dealers. Dell put together a business strategy that included mass customization and just-in-time manufacturing (letting customers design their own computers and custom-building systems). Dell also stuck with its direct sales plan and offered sales on the Internet. "Clarity in strategy works. Fuzzy

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