ASWOT analysis is an analytical technique that enables a business to scan itsenvironment as part of strategic planning.
Abusiness environment is made up of internal and external aspects. Thesebusiness environment elements can be favorable or unfavorable to the success ofthe business. A SWOT analysis identifies the elements and differentiates theeffect of these elements on the businessperformance. Constituents of SWOT analysis include Strengths, Weaknesses, Opportunities, and Threats.
A process thatinvolves identification and evaluation of these aspects is the SWOT analysis. Strengths and Weaknesses areinternal factors that affect the business performance. Opportunities and threats, on the other hand, are external to thebusiness. Strengths are business characteristics which are positive andcontribute positively to the performance of the business. Weaknesses, in contrary, are the negatively contributingfactors which can cause the business low performance (Curtis & Cobham, 2008).
Opportunities are those external aspectsthat the business can exploit to improve its performance. Threats, on the other hand, are those externalfactors that threaten the performance of the business. StrengthsStrengthscontribute to the performance of businesses and successful identification ofstrengths acts as a step towards business success. Our product owns a plenty ofstrengths that will help to contribute to its success..The main strengths of our product are: 1.
BasicConsumer Need2. Largeand emerging market3. Widevariety of flavors 4.
Lowcost5. Non-Alcoholic II. WeaknessesThemost common weakness for an emerging product will be over dependence on the majorand common stores for its sales, so we need to overcome this factor. There areseveral other weaknesses like traditional preservation and narrow range ofmaterial which we need to overcome. III.
Opportunities Opportunities are very likely tooccur or company like us need to use every opputunity we have to take an advantage over other competing companies. Someof the Opportunities that our company can exploit include:1. Usingpotential PR2.
Newpackaging materials3. Replacealcoholic drinks4. Furtherreplace tea and coffee IV. Threats Threats tend to impose a greatdisadvantage on the performance of a company. Having a series of possiblethreats identified can save a company a great loss or failure margin.
Competition in the beverages marketis very stiff and our product faces a great challenge in overcoming otherproducts reputation for quality, reliability,andalso faces a threat from similar products andother major threats that include arewater scarcity,changes in consumer tastes,increased competetion,distributioncosts,health issues,environmentalism. Positive Negative Internal Strengths Basic Consumer Need Large and emerging market Wide variety of flavors Low cost Non-Alcoholic Weaknesses Negative Claim Traditional Preservation Over Dependence External Opportunities PR New packaging materials Replace alcoholic drinks Threats Health issues Distribution costs Environmentalism