SWOT refers to the abbreviation of the first English letters of "Streg", "Weakness", "Opportunities" and "Threats". In modern enterprise management, through SWOT analysis, you can make more objective evaluation of the enterprise's internal capacity and overall quality of the enterprise, and understand the advantages, disadvantages, opportunities and threats of companies relative to other competitors. Remind the company to formulate the corresponding competitive strategy, so that the company will always stand in an invisible position.
An advantage of a company refers to the good corporate image, perfect service system, advanced process equipment, unique business skills, stable market status, and buyers, suppliers and corporate employees. The integrity of collaboration between integrity and the advantages, technology, products, and other special core competitiveness of the company.
The weakness of a company refers to the unfavorable factors and characteristics of the business effect and efficiency of the company. For example, the company's image is poor, internal management confusion, lack of clear enterprise strategy, lacks certain key skills or abilities, research and development work lag, equipment Old, product quality is not high, the cost is too high, the sales channel is not smooth, the marketing skills are poor, etc., it can make the company in a weak position in the competition.
An opportunity for a company refers to a major favorable situation you can get in a business environment, such as a new segment, get a faster market growth, an expansion of corporate product line, and more new customers, competitors appear Major decisions mistakes or stagnant due to pride, the enterprise achieves longitudinal integration, bypassing the tariff barriers of the attractive foreign market, and the changes in government regulation, changes in the business environment, changes in competitiveness, changes in technology, The improvement of customers and supplier relationships can be considered as opportunities.
A company's threat refers to the major disadvantages in the environment, which constitutes a constraint and obstacles for business development. The addition of new competitors, the slowdown in market development, the strengthening of the competitive status of the buyer or supplier in the industry, the change of government policies, changes in key technologies, etc. can be a threat of the future success. Unlike the opportunity, there is always a factor that has threats to enterprise development.
Enterprises are dynamic, always in constant contradictions, the environment where the company is in turn, and these changes may be opportunities for a business, or it may be a threat. For example, the emergence of "home theater" is an opportunity for "home theater" production enterprises. People can enjoy movies or music without leaving their homes; but for the cinema, they are threats, due to the "home theater", make People go to the cinema to watch the chances of movies, and the revenue of the cinema will naturally be reduced. For a private enterprise, in today's market economy conditions, he may have the following chances: the loose and flexible business environment, the vast market space, the national and local government support and support, and the sixteen major in China The status is clear and strengthened, the huge collection of human resources, the use of translucent markets, and there is no historical burden. At the same time, there are many challenges: the balance of modern enterprise management mechanisms, family interests, the selection of professional managers, financing, investment channels, supervisory constraint mechanisms, balance, rational, peace, and scientific decision-making mechanism Wait. Generally speaking, a mature business has less market development opportunities, few environmental threats, small development potential; difficult enterprises face large environmental threats, and there is very few marketing opportunities; ideal companies have more development opportunities, environment Less threats, however, such companies are rarely existed in reality; the opportunities for adventure companies and challenges, success and risk, such companies should try to avoid threats while trying to grasp the opportunity .
While analyzing companies "opportunities" and "threats" should also be actively looking for problems associated with enterprise "advantages" and "vulnerable". Generally speaking, companies should analyze the following: Who is a key competitor? What is the competitive strategy of competitors? How is the market partitioning between enterprises in mutual competition? What kind of competitive status is competitive, who is the leader? Who is the challenger? Who is with the people? Who is picking up the replenishment? Is there a core resource and ability to compete with competitors? What is the core competitiveness? How does the core competitiveness match with other resources? Competitors may take those competitive action? What is the sustainability of competitors? How is the position of competitors? How is the action and reaction of competitors? How big is the competitor's offensive? What is the trend? Therefore, in modern enterprise management, how to recognize the opportunities and challenges, advantages and weakness of the company; how to transform threats into opportunities, put weak transformation into advantage is that every business and corporate manager must seriously think about and ready to prepare A question that cannot be ignored.
