SWOT Analysis

The purpose of a SWOT analysis is to aid in strategic planning by identify the strengths, weaknesses, opportunities as well as the threats.  This helps the company to plan well, mitigate any possible threats as well identify any room for improvement. It helps in identifying the competitive advantage. A business SWOT analysis is an internal analysis of the business as an entity identifies any threats and weaknesses. It includes analyzing things like competitors and substitutes products. A marketing SWOT analysis on the other hand focuses on the growth of the company in terms of gaining more market and increasing sales.

The company I am familiar with is PepsiCo Inc, which operates in the beverages and food industries. The company’s strengths include diversity of products, competency in acquisitions and mergers, extensive distribution channels as well as corporate responsibility. Its major weaknesses include low pricing, low profit margin and overdependence on Wal-Mart.

The company has the opportunities such as increasing demand for healthy food and beverages, growth in the consumption of bottled water and savoury snacks consumption growth. However, the company faces threats such as changes in consumer taste and preferences, increased competition, an increase in the value of the Dollar as well as the decreasing profits.

Response to Zachary Hancock

Great analysis Zachary, SWOT analysis is significant when an organization is planning strategically. It brings out the competitive advantage of the company.  Your company choice is interesting. It has other strengths such as brand reputation, competency and diversification. The company however depends much on the income from North America. It has the opportunity to expand the production of movies to other countries. It faces a major threat of piracy especially outside America.  The company is doing great in terms of profits but it has room for improvement.  The market is wide though there is increased online TV nowadays as well as online movie rentals.

Response to Derricia Bynoe

Great work Derricia, I agree that Strengths and weaknesses are part of the internal analysis while opportunities and threats are part of the external analysis. SWOT analysis handles the internal and external issues affecting the business. Your company choice Nike is a major competitor in the textile industry. Its brand is recognized all over the world and it has opportunities due to increased sporting activities. However, its price is too high as compared to other players in the industry such as Adidas. With increased competition in the industry, the high price might turn out to be a weakness some day.

Response to Tierria Thornton

Great view Tierria, SWOT analysis is significant when introducing a new product in the market or starting any new projects. It helps in identifying the viability of the new venture by focussing on the available opportunities and any possible threats. Identifying the threats is important to enable sufficient planning. Your company choice, UGG Australia is a wise choice. This a wide domestic market in Australia though competition is increasing with the emergence of other players. The company faces threats such as increased cost of low materials as well as increased government regulation. The company however has room to expend in the international market.

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