The Internal Analysis of strengths and weaknesses focuses on internal factors that give an organization certain advantages and disadvantages in meeting the needs of its target market. Strengths refer to core competencies that give the firm an advantage in meeting the needs of its target markets. Any analysis of company strengths should be market oriented/customer focused because strengths are only meaningful when they assist the firm in meeting customer needs. Weaknesses refer to any limitations a company faces in developing or implementing a strategy Weaknesses should also be examined from a customer perspective because customers often perceive weaknesses that a company cannot see. Being market focused when analyzing strengths and weaknesses does not mean that non-market oriented strengths and weaknesses should be forgotten. Rather, it suggests that all firms should tie their strengths and weaknesses to customer requirements. Only those strengths that relate to satisfying a customer need should be considered true core competencies. (Marketing and Its Environment, pg 44)
All businesses - from major corporations to a single-person, home-based business - must keep up with the changing times, marketplace and competition. It is essential that managers, leaders and business owners conduct a SWOT analysis. This is a very important tool in making the strategic plan, setting goals and creating objectives for the business. Without properly conducting a SWOT analysis, the company is doomed to failure. What is SWOT? It is an acronym for a company's internal strengths and weaknesses and the external opportunities and threats. It provides key information that helps managers match the company's capabilities and resources to the competing environment. One company may offer a strong brand name and a high quality product. However, the business may not be able to produce the product at the lowest possible price. Another company may produce a similar product at a lower price....
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