In a sense, SWOT analysis belongs to the internal analysis method of enterprises, that is, analysis is carried out according to the established internal conditions of enterprises themselves. SWOT analysis has its foundation. According to the complete concept of enterprise competitive strategy, strategy should be an organic combination of what an enterprise can do (that is, the advantages and disadvantages of the organization) and what it can do (that is, the opportunities and threats of the environment). The competition theory put forward by Michael Porter, a famous competitive strategy expert, thoroughly analyzes and explains the "possibility" of an enterprise from the perspective of industrial structure, while competency-based management scientists use the value chain to deconstruct the value creation process of an enterprise and pay attention to the analysis of the company's resources and capabilities. On the basis of synthesizing the former two, SWOT analysis combines the internal analysis of the company (that is, the research orientation concerned by management scholars in the mid-1980s, represented by the ability school) with the external analysis of the industry competitive environment (that is, the central theme concerned by early strategic research, represented by Andrews and Michael Porter) to form its own structured balanced system analysis system. Compared with other analysis methods, SWOT analysis has obvious structural and systematic characteristics from the beginning. As far as structure is concerned, first of all, in form, SWOT analysis is to construct a SWOT structure matrix and give different analytical significance to different areas of the matrix; Secondly, the main theoretical basis of SWOT analysis also emphasizes the analysis of the external environment and internal resources of enterprises from the perspective of structural analysis. In addition, as early as the 1960s before the birth of SWOT, some people put forward the internal strengths, weaknesses, external opportunities and threats involved in SWOT analysis, but only analyzed them in isolation. The important contribution of SWOT method lies in matching these seemingly independent factors with systematic ideas for comprehensive analysis, which makes the formulation of enterprise strategic plan more scientific and comprehensive.
Since its formation, SWOT method has been widely used in strategic research and competitive analysis, and has become an important analytical tool for strategic management and competitive intelligence. Intuitive analysis and simple use are its important advantages. Even without accurate data support and more professional analysis tools, we can draw convincing conclusions. However, it is this intuition and simplicity that makes SWOT inevitably have the defect of insufficient accuracy. For example, SWOT analysis adopts qualitative methods, and forms a fuzzy description of the competitive position of enterprises by enumerating various manifestations of S, W, O and T, and the judgment made on this basis is bound to be subjective. Therefore, when using SWOT method, we should pay attention to the limitations of this method. When listing facts as the basis of judgment, we should try our best to be true, objective and accurate, provide some quantitative data, make up for the deficiency of SWOT qualitative analysis, and build the foundation of high-level qualitative analysis.
SWOT analysis is to combine the opportunities, risks, advantages and disadvantages of the internal and external environment of the organization, so as to find a way to formulate business strategies and tactics suitable for the actual situation of the organization. SWOT analysis of human resources refers to the analysis of opportunities, risks, strengths and weaknesses in the selection, use, education and retention of talents in order to enhance the competitiveness of human resources.
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Meaning:
It is of great significance to help you clearly grasp the overall situation, analyze your strengths and weaknesses in resources, grasp the opportunities provided by the environment, and guard against possible risks and threats.
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case analysis
Swot analysis case: SWOT analysis of gold ingot game
Advantages:
Team advantage: Senior professional managers, senior Internet R&D personnel and young people full of passion and dreams for the Internet form the New Taiyang team, of which 65% are college graduates and more than 25% are graduate students. Based on the organizational principle of "appointing people by their posts", the New Sun team has strong cohesion and combat effectiveness. We have not only developed online games represented by Jin Yuanbao, but also developed various marketing channels represented by telecommunications. The New Sun team is determined to maintain and improve its reputation in the field of development and service, and to enrich the market demand of Internet in China with fast customer service system, reasonable charging system and correct product research and development.
Product advantages: On the Internet, where portals, search and online games are rampant all over the world, it turns out that we have successfully developed a right product-Golden Jubao casual game: First, the luxurious interface and powerful sound effects have subverted the tradition, surpassed QQ and Lianzhong, and made people feel immersive in Las Vegas; Secondly, the eight games that make up Jin Yuanbao have their own characteristics. Bar "throwing a sieve", "lucky turntable" and "baccarat" are the first in the Internet, which enhances the authenticity and interest of the live simulation. At the same time, many games such as Minnan market are equipped with Xiamen, Zhangzhou and Quanzhou dialects, which enhances the emotional connection between the game and users. Thirdly, it can meet the interactive game needs of single player, double player, three player and four player, and the operation is simple and easy to use.
Channel advantage: the marketing strategy of Jin Yuanbao's game marketing stage mainly radiates to the whole country in Fujian. At present, we have reached cooperation and promotion agreements with most basic telecom operators in Fujian, mainly using their resources including broadband users, servers, bandwidth and so on. As a telecom value-added service, Gold Treasure Game not only supplements its product line as the core content of broadband application, but also brings rich benefits to all partners. In addition, the main online game third-party promoters in Fujian market have reached an agreement with us, and these promoters will participate in the game marketing of Jinyuan Fort with us on the basis of the profits gained from resources and experience.
Disadvantages:
Opportunity cost: We have spent a long time researching Internet products such as portals, advertisements, search engines, making friends, blogs, movies, BT, etc. And cutting into online games and subdividing the leisure game market, based on the research results of small and wide, geographical advantages, has pointed out the development path for us. In this context, the opportunity cost of Jin Yuanbao games is very high, and the gradual entry of leisure game giants such as QQ and Lianzhong into the regional market is also increasing our opportunity cost.
Brand: At present, we don't have a strong brand awareness and reputation, which requires us to do every detail from research and development to service. We are confident and capable of establishing a good reputation and a well-known Internet brand while realizing the value of our products.
Capital: The ever-improving Internet makes it impossible for us to be in a waiting position all the time like pigs in smart pig games. We need to take the initiative: actively analyze user needs, actively improve and upgrade products, actively launch marketing, and actively update service equipment. Without all this, we can't realize the value of Jinyuan Fort and realize our strategy. And all this needs money.
Opportunities:
Broadband popularization: The popularization of broadband network makes more people understand, be familiar with and participate in the Internet. "Learning", "work" and "entertainment" are the eternal themes of Internet life. Leisure and entertainment in leisure time will bring users physical and mental relaxation. QQ and Shanda Games have proved this point. Our opportunity is to better grasp the needs of users in front of a larger user group.
Homogenization of products: Internet product innovation is always done by pigs: Sina and Baidu's blogs are all done by blog China, and the BBS model in Tsinghua, Shui Mu is imitated by major websites. It can be asserted that the recent hot Tudou podcast will be immediately applied to major portals. On the Internet, the market rules have been reversed. In order to avoid losing users and not thinking about innovation, big websites just wait for the pig to press the button. From QQ, Lianzhong to other leisure online games, people basically see the same kind of products. In fact, they are fully capable of doing better: friendlier interface, simpler operation, richer applications, more wonderful experience, more targeted products ... and all this has now been completed by Jin Yuanbao!
Threats:
Large-scale operators: With the national market approaching saturation, large-scale casual game operators gradually realize that the regional market will become another growth point of profits, and are eating away at the regional market share in a planned and targeted way. Their strength and experience are our greatest threat, but they are also our opportunities: because standardized marketing may make them ignore regional and cultural differences, just like using the number 13 in Europe.
Other risks: at present, there are no laws and regulations specifically for online games in China, and there are no laws related to the protection of virtual property. Therefore, like most online games, we will not only face the risks at the policy level, but also face the risks of disputes over users' virtual property.
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Steps of SWOT analysis:
1. List the strengths and weaknesses, possible opportunities and threats of the enterprise.
2. Advantages, disadvantages, opportunities and threats combine to form SO, ST, WO and WT strategies.
So the strategy: relying on internal advantages and taking advantage of external opportunities.
WO strategy: make use of external opportunities to make up for internal disadvantages.
ST strategy: using internal advantages to avoid external threats.
WT strategy: reduce internal disadvantages and avoid external threats.
3. Identify and select the strategies of SO, ST, WO and WT, and determine the specific strategies and tactics that enterprises should adopt at present.
(analysis usually uses tables, which is more intuitive. You must analyze it and come to a conclusion.
Competitive advantage refers to the ability of an enterprise to surpass its competitors, or the uniqueness of a company to improve its competitiveness. For example, when two enterprises are in the same market or they both have the ability to provide products and services to the same customer group, if one of them has a high profit rate or profit potential, then we think that this enterprise has a competitive advantage over the other enterprise.
Competitive advantage can be the following aspects:
● Advantages of technical skills: unique production technology, low-cost production mode, leading innovation ability, strong technical strength, perfect quality control system, rich marketing experience, excellent customer service and excellent large-scale purchasing skills.
Advantages of tangible assets: advanced production lines, modern factories and equipment, rich natural resources reserves, attractive real estate location, sufficient funds and complete information.
● Advantages of intangible assets: excellent brand image, good commercial credit and aggressive corporate culture.
● Advantages of human resources: employees with professional knowledge in key fields have high work enthusiasm, strong organizational learning ability and rich experience.
Advantages of organizational system: high-quality management and control system, perfect information management system, loyal customer base and strong financing ability.
● Competitive advantage: short product development cycle, strong dealer network, good cooperative relationship with suppliers, sensitive response to changes in market environment and leading market share.
Competitive disadvantage (W) refers to what a company lacks or does badly, or what will put the company at a disadvantage.
Factors that may lead to internal defects are:
Lack of competitive skills and technology
Lack of competitive tangible assets, intangible assets, human resources and organizational assets.
● Competitiveness in key areas is being lost.
Potential opportunities for the company:
Market opportunity is the main factor affecting the company's strategy. Company managers should identify every opportunity, evaluate the growth and profit prospects of every opportunity, and choose the best opportunity that can match the company's financial and organizational resources and make the company have the greatest competitive advantage potential.
The potential development opportunities may be:
● The expanding trend of customer base or product market segment.
● Transfer skills and technologies to new products and businesses to serve a larger customer base.
● Forward or backward integration
The market entry threshold is low.
● Ability to acquire competitors.
● Strong market demand growth and rapid expansion.
● Have the opportunity to expand to other geographical regions and expand market share.
External threats endangering the company (t):
In the external environment of the company, there are always some factors that threaten the profitability and market position of the company. Company managers should identify threats that endanger the future interests of the company in time, make assessments and take corresponding strategic actions to offset or mitigate its impact.
The external threats of the company may be:
Strong new competitors will enter the market.
● Substitutes seize the company's sales.
● The market growth rate of major products declined.
● Adverse changes in exchange rate and foreign trade policies.
● Adverse changes in demographic characteristics and social consumption patterns.
● The negotiation ability of customers or suppliers is improved.
● Reduced market demand
● Vulnerable to economic depression and business cycle.
Because of the integrity of enterprises and the extensive sources of competitive advantages, when analyzing advantages and disadvantages, we must make a detailed comparison between enterprises and competitors from every link of the whole value chain. For example, whether the products are novel, whether the manufacturing process is complex, whether the sales channels are smooth and whether the prices are competitive.
If an enterprise's advantages in one aspect or several aspects are the key success factors that enterprises in this industry should have, then its comprehensive competitive advantage may be stronger. It should be pointed out that whether an enterprise and its products have competitive advantages can only be measured from the perspective of existing potential users, not from the perspective of enterprises.
In the process of maintaining competitive advantage, enterprises must deeply understand their own resources and capabilities and take corresponding measures. Because once an enterprise has a competitive advantage in a certain aspect, it will inevitably attract the attention of competitors. Generally speaking, after a period of efforts, enterprises have established a certain competitive advantage; Then, while maintaining this competitive advantage, competitors began to react gradually; Then, if competitors directly attack the advantages of enterprises or adopt other more powerful strategies, this advantage will be weakened. Therefore, enterprises should ensure the lasting competitive advantage of their resources.
The lasting competitive advantage of resources is influenced by two factors: the competitive value of enterprise resources and the duration of competitive advantage.
To evaluate the competitive value of enterprise resources, four tests must be conducted:
1. Is this resource easy to copy? The greater the cost and difficulty of imitating a resource, the greater its potential competitive value.
2. How long can this resource last? The longer a resource lasts, the greater its value.
3. Can this kind of resource really maintain its superior value in the competition? In the competition, a resource should be able to create a competitive advantage for the company.
4. Will this resource be offset by other resources or capabilities of competitors?
There are three main factors that affect the duration of an enterprise's competitive advantage:
(1) How long will it take to build this advantage?
(2) What advantages can be gained?
(3) How long does it take for competitors to react strongly?
If the enterprise analyzes these three factors clearly, it can make clear its position in establishing and maintaining competitive advantage.
Of course, SWOT analysis is more than just four lists. The most important thing is to evaluate the company's strengths, weaknesses, opportunities and threats, and finally draw the following conclusions: (1) How to maximize the use of its own resources under the company's existing internal and external environment; (2) How to establish the company's future resources.
Case: SWOT analysis of employee satisfaction
superiority
Identify with and abide by the company system.
Love learning and strive for progress.
The selfless disadvantage of employees
Wages are lower in the industry.
Too much overtime leads to employee fatigue.
Weak corporate culture construction
Opportunity o
The organizational structure is being adjusted.
Joint-stock system reform and listing opportunity strategy
Establish human resources department and strengthen human resources management.
Strategies for selecting and training reserve cadres
Hire management consultants and vigorously promote the construction of corporate culture.
Establish a scientific and reasonable performance appraisal and salary system
Threat test
The loss of skilled personnel and skilled workers
The strategy of low personnel quality
Set up a training department to improve employees through continuous training.
Quality of work; WT strategy of introducing high-quality talents
Retain some talents with high salary
The company decided to establish three weaknesses for improvement, and the newly established Human Resources Department and Training Department will improve the weaknesses:
First, change the salary system currently used by the company and establish a scientific and reasonable performance appraisal and salary system;
Second, establish an internal training system to carry out quality education for all employees;
Third, vigorously promote the construction of corporate culture.