Strategic Plan: SWOT Analysis

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SWOT (Strengths, Weaknesses, Opportunities, and Threats) analysis is a strategic planning method used to evaluate the business venture. The analysis requires businesses to specifically focus their resources towards the overall attainment of their objectives. Critical evaluation of the favorable and unfavorable internal and external environment is done to assist the businesses in realizing their objectives. In this case, the firm is required to fully exploit its strengths and opportunities. Similarly, a positive countering of threats and weaknesses should be undertaken to ensure market competitiveness. Pico sim technologies, therefore, intend to analyze its internal operations together with the external environment to ensure economic sustainability in its operations. This paper seeks to analyze the SWOT analysis a method used in strategic planning about Picosam technologies.

Picosam technologies

SWOT Analysis table

Strengths

  • Quality and reliable products
  • Excellent product life and durability
  • Improvedcustomer relations
  • Products innovations
  • Management commitments and confidence
 Weaknesses

  • Staff training
  • Business location
  • Inadequate product trial
  • Inadequate detailed marketing plan
  • The economies of scale (small)
Opportunities

  • Market availability
  • The newness in the market can offer a surprise to the competitors
  • Better and improved supply deals
Threats

  • Legal registration processes
  • Intellectual properties
  • Competition
  • Environmental conditions which may favor large and global firms
  • Retention of competent and experienced key personnel

Strengths

The firm has finalized installing its production technique which guarantees quality and reliable products throughout its operations. Although the undertakings have been expensive due to capital investments involved during the initial stages, the firm appreciates the fact that the cost is only incurred once. The firm also intends to maintain a cordial relationship with its customers at all times. More attention will be given to them since the success of the company largely depends on the customer’s goodwill.

The firm’s production unit has critically analyzed the competitor’s products already in the market and has therefore improved its own to win the market share (DuBrin, 2009, p.289). The firm has also heavily invested in research and development programs to ensure up-to-date innovative techniques in its productions. This, therefore, assures the company’s future as it adjusts to suit the prevailing market conditions. The current commitment to Picosam technologies boosts the morale of the staff to even work harder to see the company succeed. Indeed, the confidence in the overall staff acts as a driving force towards excellence in the productions and marketing of the firm’s products.

Weaknesses

Because the firm is new in this venture, there’s not much training that has been given to the staff currently, the reason being no feedback has been obtained from the actual participation in the market. This weakness will nevertheless be rectified when the firm initiates its operations as a responsive mechanism. Due to capital limitations, the firm will have few distribution channels which may limit product marketing (Griffin, 2007, p.68). However, the weakness will be solved with time as the firm plans to prioritize expansion policy in its budget. The trial products that the firm produced to sample its market were inadequate thus limiting the awareness among the potential consumers. The firm will therefore need to use brochures and other forms of advertisements to increase product awareness in the market.

The market inexperience may greatly hamper the firm’s marketing plans since there will be no detailed plan on how to actualize the activities. But to remedy this company seeks to employ flexible, energetic, and self-driven sales representatives who will efficiently and effectively represent the firm in the market. The small production capacity in Picosam technologies does not only limit the production process of the firm but also causes an increased production cost. Economies of scale, therefore, are quite important as it enhances mass productions which consequently lower the production cost in a firm. To improve on this Picosam technologies will seek to purchase a capital intensive machine which will greatly lower the production cost as only a few experts will be employed in the production unit.

Opportunity

Considering the current technological advancement in the world, Picosam technologies stand in a better position to rise within the first initial years. The demand for products such as i-pod, flash disks, latest designer phones, computers, and other computer accessories are on the increase thus creating a growth potential for the firm (Ferrell & Hartline, 2007p.120). The firm may also initiate more attractive deals to the suppliers who will consequently market their products efficiently. Relatively cheaper goods may be unleashed by the firm pausing as a great surprise to its competitors.

Threats

Although copyright and patent rights have a great impact on the industry, the firm has made sure that all the legal undertakings which offer them the right to produce have been obtained. The existing major firms offer a threat to the firm due to the favorable environment that they already enjoy in the market (Stapleton & Thomas, 1998p.79). But the management’s confidence and commitment to the business will certainly work in favor of the company. The firm also intends to keep up the competition game by offering quality and reliable products in the market. To sustain quality production the company plans to remunerate its staff well to prevent and reduce the turnover rate.

Conclusion

All businesses need to critically evaluate their operating environment to ensure their present and future success. SWOT analysis not only evaluates the internal environment but also the external environment of the firm in a certain industry. The firm should therefore work towards maintaining and building on its strengths and the other hand, it should optimize and prioritize the available opportunities. Measures and remedies should be undertaken to improve on the firm’s weaknesses while threats should be countered to ensure growth and development in the industry.

References

DuBrin, A.J. (2009). Leadership: Research Findings, Practice, and Skills. Boulevard, Cengage Learning. Web.

Ferrell, O.C. & Hartline, M.D. (2007). Marketing Strategy. Boulevard, Cengage Learning. Web.

Griffin, R.W. (2007). Fundamentals of Management. Boulevard, Cengage Learning. Web.

Stapleton, J & Thomas, M.J. (1998). How to prepare a marketing plan: a guide to reaching the consumer market. New York, Gower Publishing, Ltd. Web.

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