Strategy formulation requires an objective analysis of the factors that characterize the company's strategic situation. There are a number of techniques that can be used to create a quick strategic overview of the company. SWOT analysis is an example of such a technique. SWOT analysis is based on the assumption that an effective strategy derives from a sound â€˜fit' between the company's internal resources (Strengths and Weaknesses) and its external situation (Opportunities and Threats). A good fit maximizes the company's strengths and opportunities and minimizes its weaknesses and threats.
Positive: Strengths Technological Skills Leading Brands Distribution Channels Customer Loyalty Customer Relationship Production Quality Management.
Negative: Weaknesses Absence of important skills Weak Brands Poor Access to Distribution Low Customer Retention Unreliable Product/Service Management
Positive: Opportunities Changing Customer Tastes Change in Geographic Markets Technological Advances Changes in Government Policy Lower Personal Taxes Change in Demographic Structure New Distribution Channel
Negative: Threats Changing Customer Tastes Closing Geographical Markets
Technological Advances Changes in Government Policy Tax Increase Change in Demographic Structure New Distribution Channel
With the information above and other research, conduct a SWOT analysis on the company you selected. Write a narrative describing the analysis you conducted.