Importance of SWOT Analysis in Developing a Strategic Business Plan

Introduction

A business plan is a set of business objectives and goals, stating the reasons why they are attainable and the plan for achieving them. It can also include the background information about the business. The main goals of the business is either to make profit or non-profit. For businesses whose main goal is to make profit, more specifically focuses on the financial goals whereas non-profit organizations are concerned with service delivery goals.

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The strength and weakness of them ILinc business plan

To achieve its objectives a company will have to formulate and take into account “its strengths, weaknesses, opportunities and threats (SWOT Analysis) a comprehensive analysis of the above will form the basis of establishing a more efficient strategic business plan”. Strength will alight what the organization is good at and can perfect this may include a professional work team and adequate and up to date facilities to make their work effective weaknesses may highlight what the organization is not capable of achieving as well as its inadequacy.

Opportunities may indicate what the organization might seize to its advantage so that it can accomplish its objectives; this may include taking advantage of favorable government’s grants as well as tax exemptions to bolster its business strategies. Threats are environmental factors that may include negative legislation agenda which may impact on resources.

Strengths

This may be termed as capabilities and internal resources that give the company a competitive edge. The strength of this business plan is that it that has a good infrastructure system and a competent management team. Bernstein has a degree in Economics while Usluel has a degree in Electrical Engineering.

It is also notable that the firm enjoys location advantages. It even has branches globally so as to be as near the consumer as possible. This reduces expenses that could be incurred on transportation of raw materials from far places. It also saves on the labor costs in that instead of fetching employees from certain specific areas to come and work elsewhere, the employees are drawn from the region where the company branch is located.

The Interactive Learning Corporation ability to factor in its plan careful analysis of its technology products as well as market research has enabled it to integrate emerging technologies whereas maintaining low operational cost. The ever changing global economy that has virtually reduced the world into a global village has greatly informed company’s expansion into the whole market in order to seize the huge market gains in this region. The company has also introduced a range of new products into the market and developed a workable marketing and financial strategies.

Weakness

In light of its strengths, the company will also need to formulate strategies to counter its weakness to effectively balance in the market. One of the weaknesses of this business plan is that it has targeted the same market for too long hence dwindling sales. It can be said to be outdated in terms of its market focus. The materialized new technologies might move the market to new directions.

Opportunities

An opportunity has the qualities of being striking, long-lasting, and well-timed and is supported by a product or service which produces or adds value to its consumers. Attractive opportunities have some level of control of prices, expenses and channels of distribution.

The Company needs to take advantage of available opportunities in order to advance its business agenda. It has many opportunities such as growth in the IT sector in international markets. The company is still exponentially growing hence more opportunities in terms of new markets and customers this gives the company a good opportunity to expand its business as well as launch new products in the market. The increase in channels of allotment means new products will be sought.

The other attractive opportunity is the increasing population especially in developing nations hence need for technology connection. There is increased need for technology in most part of the world specifically in the third world countries. Hence, there is potential for diversification into market for similar products.

The company has a fragmented markets and hence capable of controlling their price and expenses. Its economies of scale is also another attractive opportunity that the company enjoys such that due to its large size, it incurs less costs in production and its overall output brings in more profit.

  Threats

The company will have to contend with a number of threats in its business operations. This includes the ever changing technology. Technology can only get better and a company to stay afloat it must change with the technology or even stay ahead of its competitors. New players in the market might bring new products thus complicating its access to distribution channels when substitute products are introduced which may be priced lower. Also when substitute products that are priced lower are of quality and performance, this may pose a threat to dells profits margins.

Conclusion and Recommendations

Businessmen need to reflect implicitly on their business plan. Otherwise they can end up being worn out when coming up with a business and end up becoming poor or rich. Technology is ever changing, the global economy has ended up shrinking into a global village; opportunities belong to those who can effectively analyze the market environment by using their strength to spot potential opportunities. Rapid technological changes will help in a company’s global expansion; new technologies destroy existing ones and provide a leeway for creating new markets.

The ability to access information in a more efficient way has become a paramount source of aggressive advantage. Information and knowledge is a critical resource in creating a competitive age. This will enhance the company’s strategic flexibility where it will be in a position to respond to various market demands accompanied with opportunities in a competitive environment. Great emphasis should also be placed in marketing, some analysis should be undertaken to ensure that customer reactions is going to be positive while identifying opportunities to capture the market and contain current and future competitions.

The concept of dealing with customers on a one on one basis is paramount if a company is to achieve its goal of profit making. This will be important in cutting down cost associated with middle men as well as ensuring that customers get better quality products and more powerful systems. This will enhance customer relations as well as customer loyalty, making the company establish a wider market niche.

Customer satisfaction in its new markets will be of great significance and therefore customer awareness and customer surveys will be important to ensure that it creates a positive image of itself. If the product is well known and continues to resonate with the customers, it will not have to spend extra finances in product development as well as intense marketing. By carefully analyzing some of these factors a company will overcome its weakness and enhance its strengths to gain significant benefit over its competitors thus bringing success to the business.

Reference

David, B. and Mark, P. (2003), ILinc: Case Study of a set up. Harvard Business School.

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