SWOT Analysis | What Is SWOT Analysis? | SWOT Analysis Explained With Example | Simplilearn

you will participate in several sessions during your mba to examine numerous business models these sessions will enable you to comprehend the positives and negatives of the best business strategies out there and by analyzing these models you will become able to address flaws in businesses that needs to be resolved and a tool that frequently comes up in the business environment to analyze different projects businesses and strategies is the swot analysis so in today's session we'll discover this swot analysis technique in detail but before we begin make sure to subscribe to our youtube channel and hit the bell icon to never miss an update from simply learn the topics that we are going to discuss are what is what analysis what do different quadrants or sections in this what matrix or diagram means here we'll also discover the factors that can be included in these sections and finally we'll cover the swot analysis for the most emerging automobile organization tesla the first topic we have is what is swot analysis the swot analysis is the tool that the company uses to complete the objective analysis it is vital component of every strategic plan the terms what stands for strengths weaknesses opportunities and threats a swot matrix or diagram comprised of all these four factors examines a project or business venture by emphasizing on each of the business aspects it typically consists of four quadrants one for each area but the exact shape may vary depending on the design the strengths and weaknesses of swot analysis are considered as internal factors whereas opportunities and threats are external factors the factors host control lies in hands of organization are considered as internal factors and the factors which are beyond companies control are regarded as external factors the spot approach is quite beneficial in order to decide on whether to embark on a specific project or plan by visualizing the pros and cons by clearly outlining all the positives and negatives of a project sort analysis makes it easier to decide how to move forward for formulating a thorough swot analysis companies have to research what things they are good at and not so good at moving forward we'll delve over all the sections of sort technique one by one the first one we have is strength strengths are things in which a firm performs well or in a way that sets it apart from competitors in this section of swot analysis you are supposed to think about the advantages your organization has over the competition these things are the specific actions that the company does that no other competition is doing better than them basically this is the thing that the company is known for for example walmart in u.s or dmart in india both these businesses perform exceptionally well because they maintain a very low cost for daily groceries or goods this allows them to do hefty business than their competition the ability to keep the cost low has transformed these companies into the biggest corporations further their enormous value in the market enables them to negotiate the discount of goods with their suppliers the amount of items they purchase also impact on this discount factor thus the low prices and brand value will be the strength of both walmart and dmarc brand value is something that you feel about the company as a customer when you see their logo website or even an ad campaign this refers to the positive emotions you have towards the company the next strength can be loyal customer base for instance consider the scenario of apple inc this brand has huge loyal customer base when apple launches a new product loyal customers get tempted to purchase them and hence apple makes enormous profits obviously apple's optimal services and quality experience have the prominent edge in maintaining this immense customer base next up is unique technology when a company has a more technical sound product it's definitely deemed to make huge profits hence unique technology can be considered as a strength factor another example of strength is skill and focus workforce this is significant strength because human resource is the greatest asset that any company can have physical resources and hefty investors are other elements that can considered as strengths of an organization now that we have analyzed few strengths we'll look into the next what factor which is weaknesses weaknesses are the things that company does that aren't necessarily positive these factors can become liability for them anything that is not a strength of an organization can become a weakness hence the honest listing of all these factors is quite important furthermore weaknesses are also inherent features of your organization so focus on your people resources systems and procedures think about what you could improve and the sorts of practices you should avoid picture how other people view you in your market do they notice weaknesses that you are blind to take time to examine how and why other competitors are doing better than you what are you lacking by analyzing these factors thoroughly you will be able to list all weaknesses which need proper attention negative brand recognition can be considered as one weakness companies that have poor customer service and are widely known for same must consider this issue as significant weakness because people will think twice before buying a product from such a company things like low turnover inadequate supply chain are also the subsequent negative factors to consider having an unskilled workforce also provides a weakness because you are committing multiple resources into training furthermore financial factors such as lack of capital and high debts are also amongst huge weaknesses now that we have covered both internal factors we'll look into the external factors the first external factor we have is opportunity opportunities are chances or prospects for something positive to happen but you will need to claim them for yourself the opportunities generally arise from the situation outside your organization they might develop in the market you serve or in the technology you use the abilities of your company to compete and take the lead in your market may make a big difference in identifying and seizing opportunities the most notable and vital example of opportunity is market growth for example consider a scenario of kovit 19 pandemic in this pandemic time the sale of dolo 650 tablet increased significantly and the manufacturing brand micro labs received a reasonable profit for the same that is why it is critical to look at future opportunities that may arise in your market these opportunities don't need to be game changers even small chances can increase your organization's competitiveness you should also take care of modifications to your fill related government policies and changes in social patterns demographic profiles lifestyle etc these factors can also throw few opportunities to see on your way to the top the final factor we have is threat threats include everything which might have negative impact on your business it's essential to foresee and act against all the risk before you become victim of them and stagnate your graph of growth in this threat section of swot analysis consider the barriers you encounter while marketing and selling your goods and jot them down here you might also notice that quality standards of your specification for your products are also changing and that you'll need to change those products if you are to stay in the lead the excellent example of thread can be increased competition for instance consider a scenario of starbucks starbucks is one of the biggest coffee seller brand in the world and it has highest cost for almost all the products now if you consider the global coffee market you'll find brands like cafe coffee day dunkin donuts with lower prices and coming with region specific tests thus the business of starbucks might get impacted by these competing brands the next example of threat can be a natural disaster like flood drought or earthquake these phenomenas can impact economies of different geographies and hence the businesses out there next we have is a rising cost of raw materials and low human resources these factors can also pose a threat to business as the rising cost will affect production and insufficient human resources will make the company's operation completely difficult on that note we have covered all the sections of swot analysis now moving ahead we'll formulate a sample swot analysis for understanding this technique more clearly the sample swot analysis we are going to do is for one of the leading automobile company tesla so let's dive directly into that we'll fill all these sections of swot matrix one by one let's begin with strengths tesla was formed in 2003 with the goal of being the world's first successful pure electric car manufacturer it also aspires to be one of the two us automakers that have not declared bankruptcy the other one being ford the biggest strength of tesla is that it has strong brand value and after all who hasn't heard of tesla right so it definitely has strong brand recognition it is the world's most well-known manufacturer of electric vehicles moreover tesla has a significant edge over other firms that are said to enter this sector furthermore elon musk tesla's iconic ceo and major shareholder is one of the world's most renowned influential and appealing businessmen around the world his ability to sell the story and elicit audience participation is remarkable people who constantly observe his business are more inclined to become his clients and this is something really priceless for a company in long run the next advancement tesla has over the competition is that it is a leading electronic car vendor not only that but actually tesla is the first company to launch a complete electric vehicle moreover many consumers like tesla's pioneering attitude the capabilities of autopilot mode as well as the level of luxury provided by tesla vehicles are two of the main reasons why people admire tesla eye-catching aesthetics along with energy efficiency and good customer experience explain tesla's premium price and distinct competitive approach the next strength we have is tesla's usb usb is the acronym for unique selling proposition it is a distinct advantage that distinguishes your company from others in your industry tesla's usb is one of the most deliberate and thoughtful one it speaks volumes about preserving the global environment by removing gasoline or petroleum-powered cars from the equation tesla tells a story a story of an organization which is in business with the illustrative purpose of preserving the global environment probably this is tesla's most valuable strength in my view along with that the cars manufactured by tesla are ahead of the competition in terms of battery range experience with battery production and battery recharging not only that but tesla already has a plan in motion to make it the most extensive battery producer in the world the company has created several gigafactories three in u.s one in europe and one in shanghai they are also trying to open one new gigafactory in indian market and this is going to ultimately provide a competitive edge over competition in terms of battery production and its cost all these factors will do wonders in idealistic future world but right now in fossil fuel dominated world there are few downsides to consider for this business hence moving forward we'll discuss the weaknesses of tesla tesla is a trailblazer in its area however some may consider elon musk's decision to make all their patents open source to be naive and unrealistic this could be disastrous for the firm in long run since it will be unable to defend its invention from the competition the next weakness we have is experimental and complex procedures the greatest the amount of innovation the larger the mechanical problem and risk components in the manufacturing process when it comes to introducing a new vehicle and other goods tesla has been troubled with launch delays manufacturing problems and sluggish productive ramps tesla has been able to compete with the world's major automobile makers in a relatively short period of time but its manufacturing pose is comparatively smaller than others the firm only has one factory in california and it can only build a limited number of automobiles quarterly for instance at the time of model x launch tesla has several manufacturing issues resulting in ongoing distribution delays similarly the company experienced significant challenges in developing the battery module assembly process for the model x at gigafactory one located in us it caused delays in the delivery of older models and is still one of the most severe giga concerns since it is unable to attain high manufacturing quantities this is the biggest weakness that tesla needs to overcome to remain the leader in its industry the next weakness is the price range of tesla products one of the significant challenges that tesla will continue to face is the price of electric vehicles and customer trust as mentioned earlier higher the level of innovation the greater the mechanical complexity and manufacturing risk when tesla debuts new automobiles it supports ongoing delays in manufacturing and production the customers of tesla have reported problems such as suspension issue that screen issue incompatibility of autopilot mode in some instances and difficulty with phantom braking system with this we have addressed both internal aspects of tesla swot analysis following that we'll look at a few present prospects that tesla can evolve over time the first prospect that tesla can foresee in future is electric cars are the future of transportation market that is something that most people agree on the only question is when will this shift take place many individuals anticipate that this will happen within the next 10 years and those involved in gasoline-powered cars believe that this change will not occur for next 40 years one thing is for sure the faster the transition for electric vehicles the better it is for tesla as consumers transition to electric vehicles the firm is well positioned to capture a significant market share in the favorable scenarios this will be the tremendous for tesla so this is unquestionably a huge future opportunity next up is the need for expanding the business outside us the world's two largest vehicle markets the united states and china account for the vast bulk of tesla sales however whereas the united states account for 70 of tesla sales china contributes dollar 1.8 billion accounting for less than 10 percent overall sales asian countries are the world's fastest growing markets focusing more on asian countries particularly india and china can significantly expand giga sales and establish tesla as the global leader for that to happen tesla will really have to exploit the asian market elon musk has already introduced tesla to the indian market by opening their first outlet however the magnitude of the efforts is not that great hence this is definitely a vital opportunity for tesla in the coming time additionally tesla has a few other opportunities such as economies of scale and scope economies of skill indicates that the organization should expand its production quantities while decreasing its market value this will help the firm to reach larger number of customers specifically those in the middle class economy now finally we'll discuss the possible threats that tesla might encounter in the upcoming time the first one is intensity of competition that has evolved for tesla these days tesla faces severe competition from alternative fuel vehicles as well as self-driving technologies many luxury automakers such as mercedes-benz bmw audi and lexus as well as those in the mass market such as toyota ford volvo and general motors are bracing for fierce competition despite tesla's reputation as a pioneer in the electric vehicle industry its competitors who have been in a market for hundreds of years have also quickly caught up with electric car technology furthermore their cheapest cost may tempt tesla's buyers in the future event even though tesla seems to be the sole manufacturer of high-end automobiles other firms may begin producing vehicles for the same client base placing tesla in a very competitive position many companies are creating or planning to launch environmental friendly self-driving technologies with the goal of selling them at a reduced cost it is prominent issue to a company like tesla which relies on its unique value for new cars that are extremely costly and beyond of reach of many people the next threat is claimed due to problem with product quality the automobile industry in particular is accustomed to significant product liability claims tesla has launched several self-driving vehicles and not all of them have proven to be safe in the case of accident several lawsuits have been brought against the company due to technical flaws in its products it is liability claims are followed tesla may face more severe financial implications thus something of more assurance should be done to recheck all technical aspects of new arriving tesla vehicles the last threat that tesla might come across as the shortest of necessary materials the corporation uses aluminium steel lithium nickel copper cobalt and lithium-ion cells from vendors across the globe the recent events in afghanistan have also impacted adversely in the supply of lithium hence the shortage of materials can be the most devastating rising concern for tesla that's all we have for the spot analysis of tesla i hope now you guys are clear about how you can perform the swot analysis that's all we have for today now if you have any queries regarding the topics covered in this session then let us know about them in the comment section below and our team of experts will get back to you thank you so much for being here and do watch out for more videos from us until then keep learning and stay tuned to simply learn hi there if you like this video subscribe to the simply learn youtube channel and click here to watch similar videos to nerd up and get certified click here

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Keywords: swot analysis, swot analysis explained with example, swot analysis for business, swot analysis in strategic management, swot analysis presentation, swot analysis in marketing, what is swot analysis in business, swot analysis sample, company swot analysis sample, how to use swot analysis, how to use swot analysis in strategic planning, swot matrix, swot matrix analysis example, strength weakness opportunities threats examples, swot analysis tesla, tesla, swot, simplilearn

Id: tuLj69-pPO0

Length: 18min 36sec (1116 seconds)

Published: Sat Oct 09 2021