Benefits of SWOT Analysis, Research Paper Example

SWOT analysis involves an intensive examination and analysis of a company’s Strengths, weaknesses, Opportunities and threats within a given industry. The comparison should be with respect to other companies within the industry (Lamb, 2008). Conducting SWOT analysis has its own benefits to the organization.

Conducting SWOT analysis helps one understand his company /business better. One knows the areas where his company can compete well above others in the market. Similarly, when one identifies the areas of weakness of his company, he can come up with measures of how to compete with other firms despite these weaknesses (Kumar, 2008).

A SWOT analysis will also help the owner to capitalize on the available opportunities, and develop goals and strategies of achieving them.

Let us take an example of the Yahoo Company. This company has a number of strengths. For example, it has more than 350 million users of its services and products. This makes it a remarkably strong and established marketing company, with an established brand. Yahoo seems to be the most common website in the world. Another strength of Yahoo Company is its international business presence. With the expansion of internet services, many countries adopt it and internet brands opportunities come up. Yahoo can take advantage of such opportunities (Ferrell, 2010).

One of Yahoo’s principal weaknesses is its lack of differentiability. A large percentage of its services is available on other sources. For example, search tools are available on Google and MSN. Free email accounts are available on G-mail, Hotmail and many more.

An understanding of these strengths will help Yahoo Company to pursue its strengths towards the realization of large profits (Reid, 2009). For example, the fact that Yahoo has a particularly well established brand gives it a chance to take advantage of market share. Many individuals are loyal users of yahoo services, which is a positive to the company.

An understanding of the company weaknesses like its lack of differentiability of its products makes it know which strategies are they likely to pursue, to compete favorably with other firms.

In conclusion, SWOT analysis is a very essential component in any firm if it wants to perform and compete with other firms within the industry.

References

Charles, Lamb, J. F. (2008). Marketing. New York: Cengage Learning.

Kumar, S. A. (2008). Entrepreneurship Development. Chicago: New Age International.

C. Ferrell, M. H. (2010). Marketing Strategy. New York: Cengage Learning.

Pinson, L. (2008). Anatomy of a business plan: the step-by-step guide to building your business and securing your company’s future. New York: aka associates.

Robert D. Reid, D. C. (2009). Hospitality Marketing Management. Michigan: John Wiley and Sons.