SWOT ANALYSIS When we talk about of strategic decision making in an organization, we must take consider many factors that must be studied within the company. For that, there are several useful tools such as SWOT analysis, which is meant (strengths, Weaknesses, opportunities, and Threats), this method is the simplest and effective way to analyze the present and see how will be the future of the company. The main purpose of this analysis is to support the organization to locate the strategic aspects, both favorable and unfavorable, for this, locate the strengths, reduce the weaknesses, take advantage of the opportunities and minimizing or eliminating the threats that may present. This analysis is based on two very clear terms: the…show more content… For Porter there are five forces that determine the profitability of a market for an industry. Should ideally the company to evaluate its objectives and resources taken into consideration these five forces are governed especially by industrial competition. These five forces are:
1. Power business buyers or customers: At this point, treated many aspects of the market or industry, consumers or buyers and products. We note that there are a variety of companies offering the same product at low cost, as well as many buyers or consumers for that product. Thus there may be the possibility of negotiation between the industry. For the low cost and competitiveness the customer can easily vary by a substitute product.
2. Negotiation power of suppliers or vendors: This negotiation power they may have the suppliers or vendors would become a threat to the industry, their organization, strong resources and can impose their price and size of orders. This could get worse if the materials or supplies that they produce are vital to the industry or have no substitutes or not there are many or high cost.
3. Three. Threat of entrance of new competitors: The threat begins when the input channels to market are easy or not there are many barriers to entry. Furthermore, there are no new participants arriving with new funds, skills and abilities to adapt and take control of market share.
4. Threat of substitute products: We are a market or sector is not attractive when there are many