When using SWOT to analyze internal enterprise capabilities, what impact do process limitations have on performance potential assessment? How is value chain analysis used to build competitive advantage? What role does analyzing customer needs play in shaping an effective value chain?
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Impact of SWOT Process Limitation
SWOT analysis is used in the analysis of organization’s
internal environment to help in developing strategies for development. SWOT
analysis plays a role in facilitating understanding the strength, weakness and
opportunity as well as threats in development of strategies. SWOT analysis
involves limitations and these limitations affect the business in future. The
limited areas in the process of SWOT analysis is analysed using the available
information that pertains to the market and competitors. Another impact of Swot
process limitation is that in the process of analysing the organization’s opportunity,
it is not possible to go beyond the time and therefore, it is impossible to
determine the market’s potentiality and this affects the opportunity part of
SWOT analysis thereby delivering a wrong option.
Value Chain Analysis to gain Competitive Advantage
There are two activities that are involved in the value
chain analysis. These activities are primary and support. The organization can
gain competitive advantage on basis of these two activities. The main advantage
of the organization is in connection with the value chain analysis since it has
all the activities such as the inbound logistics and operations.
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