The first analysis that has been used is the investment for a business venture of an existing business is SWOT analysis of the company and its competitors. The SWOT technique is a tool used by business to enable better decision making, it is an acronym for Strength, Weakness, Opportunity and Threat.Bohm describes SWOT as “an integrated approach using the company and environmental issues. The objective is the confrontation of the companies’ internal strength and weaknesses as well as the companies’ external business opportunities and threats.” The results of this analysis of a typical company are described below.
Strengths: Following are the generic strengths identified:
- The main strength of the company is the uniqueness of its product.
- The design of the advertising screen has a patent pending.
- The company has a clear and concise vision to become the best.
Weaknesses: Following are the generic weaknesses identified:
- The company has insufficient resources to compete at present.
- The company requires a manufacturing partner.
Opportunities: Following are the generic opportunities identified for a business:
- The lack of competitors in the market could lead to market domination.
- The development of the product for use within the community.
Threats: Following are the threats that can be comprehended in a business:
- The biggest threat will come in the form of competitors producing similar products in the market.
- Customers may switch to more well-known brands.
- Viral campaigns of competitors could.
Bohm, Anja. The SWOT Analysis. Berlin: Books on Demand GMBH, 2008. 978-3-640-42419-1