Swot

SWOT Analysis The results of the SWOT analysis conducted for Company ABC is shown below. Strengths S1. Strong brand image and recognition in the company’s industry S2. Strong domestic and international supplier network S3. Dedicated to R & D efforts and advancing the technological aspects of its product line S4. Competitive pricing strategies Weaknesses W1. Does not receive government subsidies to finance development W2. Vulnerable to changes in the market – unfavorable liquidity Measures (low cash reserves) W3. High production costs Opportunities O1. Regain the majority of the market share from its chief competitor O2. Growing market in Asia (China and Japan) O3. Larger market share in Europe O4. Continued product differentiation Threats T1. Increased competition from its chief competitor T2. Economic factors like petroleum prices and inflation T3. Political influences impacting international trade regulations T4. The World Trade Organization (WTO) supporting the competitor T5. New entrants into the industry Matched Pair Analysis The Matched Pair analysis enables strategists to pair potential alternatives that are likely to substantiate the identified long-term objectives for Company ABC. The following results of the Matched Pair analysis are indicated below. Matched Pairs S4O1 – Company ABC;s competitive pricing strategies can help the company lure potential customers away from its chief rival. S102 – Enhancing Company ABC’s strong brand image and brand name would allow further acceptability and demand of their products within the Asian marketplace. S3T2 – Company ABC is committed to R & D efforts that focus on making their aircrafts more fuel efficient. This commitment can largely minimize the impact of economic factors like rising petroleum prices. Major carriers are now more cost conscious than even and desire cost saving solutions. S2W3 – Company ABC’s vast supplier network could improve the high operating costs by improving the supply chain. W1T1 – Company ABC does not receive subsidies from the United States government like its rival. This places the company at a huge disadvantage. If this continues, with all things remaining equal, its chief competitor will continue its stronghold over the company in terms of sales volume and market dominance. Company ABC must accommodate a defensive approach in this instance by approaching the WTO and presenting its case. W3/O2/S2/T5 – Company ABC can leverage the opportunities in Asia by focusing on improving its domestic and Asian supply chain network. Consequently, this would help minimize the weakness of high operating costs in addition to creating an increased barrier of entry for other competitive companies. The above matched pairs present several promising strategic possibilities, but only the matched pair of W3/O2/S2/T5 is determined to be best fit for Company ABC. This match is largely consistent with the current environmental analysis. The matched pair addresses the fundamental long-term need for growth while also satisfying the long-term objectives of expansion into Asia, and improving the supply chain. Furthermore, this matched pair attempts to reduce new-entrants threats and minimize the weakness of high operating costs while subsequently leveraging its strengths to maximize the opportunities that China and Japan represent.