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SWOT ANALYSIS
What is SWOT ANALYSIS?
-SWOT ANALYSIS studies the financial resources, physical facilities,
management capabilities, the market, production process, information
system, sources of supply and social environment.
-SWOT ANALYSIS stands for STRENGTHS, WEAKNESSES,
OPPORTUNITIES and THREAT.
INDICATORS OF SWOT:
STRENGTH of a product or services
-Cheap and abundant raw materials
-Sufficient funds
-Availability f technology
-Presence of skilled workers
-Management and technical expertise of the entrepreneur
-Good quality/services
-Ease of production
-Small capital
WEAKNESSES of a product or services
-High price
-poor quality/service
-Weak management
-Lack of skilled worker
-Irregular supply
-Unattractive design
-High costs of production
LINKAGES OF RESOURCES
Backward and Forward Linkages
Enterprises which have established a strong growth future can
increase their efficiency or profitability through backward and forward
integration.
Maturity
Sales are still rising at the beginning of this stage. But the rate of increase
has declined. At the later partner part, the sales curve reaches its peak while
profits begin to fall. Price competition increases which forces inefficient
competitions to get out from the industry.
Decline
There is a sharp fall in sales volume while profit curve becomes almost flat or
horizontal. There is also a decline in the number of competitors. The only
survivors are those who specialize in the marketing of the product. Once the
product is no longer profitable, it is eliminated from the market.