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Swot Analysis

Essay by   •  October 4, 2010  •  Study Guide  •  533 Words (3 Pages)  •  1,050 Views

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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.


* 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.


* 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.

* I will have to employ a distributor as I am a small firm and cannot afford to supply my own distribution. This will still cost a lot of money

* I wont be able to take advantage of any economies of scale, as my company wont be big enough

* I have no expert knowledge in any aspect of marketing. But to employ someone who does will cost extra money

* People will not want to buy a whole new clothesline just to have this invention on it.


* There is a gap in the market for this product. No one has invented this yet, therefore, it may have the opportunity to monopolise this segment of the market.




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