SWOT Analysis as a Strategic Management Tool Essay

SWOT Analysis as a Strategic Management Tool - Essay vitrineThe next section will tackle SWOT analytic thinking advantages and limitations. The paper will conclude with its findings.SWOT (Strengths, Weaknesses, Opportunities, Threats) analysis is one of the most widely utilized strategic management cocks in assessing the position of a production line entity. This analysis is an integration of the results of other tools like the PESTEL analysis, industry analysis, and internal analysis. The caller-outs strengths and weaknesses are derived from internal analysis epoch the PESTEL and industry analyses provide the required information to ascertain the opportunities and threats specific to the company.According to Thomson (2004), a companys strength is something a company is good at doing or a characteristic that gives it enhanced competitiveness. A strength thunder mug take several forms like a skill or Copernican expertise, worth(predicate) physical assets valuable human assets , valuable intangible assets, competitive capabilities, an achievement or attribute that puts the company in a position of market advantage, and alliances or cooperative ventures. Meanwhile, a weakness denotes to a something that a company wants or is not good at doing relative to its competitors and puts the company in a disadvantage. ... tity deficiencies in competitively important skills or expertise or intellectual capital of one kind or another lack of competitively important physical, organizational or intangible assets and missing or weak competitive capabilities in key areas (Thomson 2002). Opportunities are essential away factors, which can propel the business organization entity into higher profitability. However, distinction should be made in order to determine whether an opportunity is an industry or company opportunity. While company opportunity is an opportunity specific to a business institution, industry opportunity needs to be well evaluated in order to assess i f a company has the required resources to take advantage of the opportunity. Threats are external factors which causes threats to a business entitys profitability and competitive well-being. An ApplicationThe following table shows the SWOT analysis as applied to the large computer manufacturer Dell, Inc.StrengthsWeaknesseslarge market sharestrong brand lawfulnessno inventory buildupcost efficiencydirect to customer business modelcustomizationtotal look out over of supply chainstrategic alliance with suppliersno proprietary technologyhigh dependence on component suppliersOpportunitiesThreatsstrong potential markets in Europe, China , and Indialow costs and advanced technology harvest-festival in business, education, and government marketsmore intense rivalrycurrency fluctuationshigh customer bargaining antecedentSWOT Analysis A CritiqueSWOT analysis is indeed a useful tool in determining the internal capability and incapability and the external forces that affects the operation an d profitability of a business organization. As shown above, SWOT analysis is very useful in assessing the strengths and weaknesses of Dell,