? SWOT is a situation analysis and it stands for strength, weakness, opportunity and threads of an organization to examine internally and externally. When the organization does the SWOT analysis they get to know about their rivals by examining their threads and they can work on their weaknesses and take advantages of their opportunities and build up their strengths.• INTERNAL FACTORS INCLUDES:-? STRENGTH AND WEAKNESS? Resources: financial, location, intellectual and costumer services? Infrastructure ? Quality? Efficiency ? Staff? Management? Cost ? Capacity ? Price? Delivery• EXTERNAL FACTORS INCLUDES:-? OPPORTUNITY AND THREATS? Technology ? Condition of economy ? Legislation ? Expectation of stakeholders ? Public expectations? PEST ANALYSIS? Pest analysis is situation analysis and stands for political, economical, socio-cultural, and technological.
By using this analysis an organization examines on the government stability, political condition spending, taxation i.e., political and inflation, employment and unemployment rate, interest rates i.e., economical and values, believes, education, Income distribution i.e., socio culture and new and innovation technics to produce the goods, knowledge generation i.
e., technological? PORTERS FIVE FORCES ? Porters five forces identifies five forces that determines the competitive power in business situations and are the following:-1. COMPETATIVE RIVARLY? Here it is required to know the number and capability of the competitors in the market.
? Example: If Image electronics LLC finds many competitors in the market that offers same deals and services then they will have little power and strength in the market, because suppliers and the customers are always in search of good deals and if Image electronics LLC provides what the other competitors can’t then they can take over the market with great strength.2. BUYER POWER? This includes the power of bargaining from different types of buyers? Example: The Image electronics LLC has divided their buyer power in two groups the ‘Common buyers’ and ‘Powerful buyers’. So for common buyers the prices changes accordingly according to individual and product as profit margin will be less but aggregate profit will be more whereas, for powerful buyers profit margin will be high and fixed.3. SUPPLIER POWER? It shows the power of the supplier over an organization, according to the services, products and innovative technologies they deliver? Example: If Image LLC has more suppliers then they have more choices to switch and suppliers won’t have more control over the organization and if Image LLC has fewer suppliers then they had to work according to the suppliers and suppliers will have more control over them4. THREAT OF SUBSTITUTION? It is the threat of the new sellers in the market ? Example: If Image electronics LLC introduces new software that can automates an important process, people may substitute by doing manually or by outsourcing it.
If substitution is viable and if substitution is easy then this can weaken the power of image LLC.5. THREAT OF NEW ENTRY? It is the threat of substitute of products that can be substituted. The main factor that affect the ability of people to enter the market is power? Example: If Image LLC has little protection for their key technologies then the competitors can easily enter the market and weaken the position on Image LLC and if Image LLC has a strong and unbeatable barriers to entry then Image LLC can easily preserve a favorable position and maintain it