A Swot Analysis Determines a Company's Position by Examining 4 Factors

Swot

A SWOT analysis determines a company's position by examining 4 factors

· Strengths

· Weaknesses

· Opportunities

· Threats

Strengths and weaknesses are said to be internal, that is, controlled by the company. Opportunities and Threats are outside the company's control and are therefore said to be external influences.

Strengths

· Most people are willing to try a new product. If they are impressed, they will trust the company and build a loyalty to it.

· It is the only product of its kind, therefore, it would have a large target audience

· As my company is new, it has no reputation. This could be seen as a weakness, but I prefer to see it as strength, because although it has no goodwill, it also has no bad will against it. Goodwill can be built over time.

· My distribution costs would be kept to a minimum, as my channel would be very small. - My Company ® Wholesalers ® Retailers ® Consumers.

· Decisions can be made quickly as there will be a small management team. This means increased efficiency

within the firm.

Weaknesses

· My product is untried and untested, so I have no idea how successful my product will be or if there will be any real demand for it.