Strategy formulation requires an objective analysis of the factors that characterize the company’s strategic situation. There are a number of techniques that can be used to create a quick strategic overview of the company. SWOT analysis is an example of such a technique. SWOT analysis is based on the assumption that an effective strategy derives from a soundit” between the company’s internal resources (Strengths and Weaknesses) and its external situation (Opportunities and Threats). A good fit maximizes the company’s strengths and opportunities and minimizes its weaknesses and threats. For example: Positive Negative Internal Factors Strengths Technological Skills Leading Brands Distribution Channels Customer Loyalty Customer Relationship Production Quality Management Weaknesses Absence of important skills Weak Brands Poor Access to Distribution Low Customer Retention Unreliable Product/Service Management External Factors Opportunities Untapped Markets Technological advancements Mergers, joint ventures, partnerships, or strategic alliances Socio-cultural trends New Distribution Channels Threats Changing Customer Tastes Closing Geographical Markets Technological Advances Changes in Government Policy Tax Increase Change in Demographic Structure New Distribution Channel With the information above and other research, conduct a SWOT analysis on the company you selected.
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