Business Strategy Monday: SWOT Analysis

Today’s

Vocabulary

(1) Customer base: The people who might buy your product

Restaurants have a huge customer base, but also huge competition.

(2) Breakthrough: A sudden advance

The world really needs a breakthrough in battery technology. .

(3) Product line: A company’s list of products

Apple has a small line of products, but each one is excellent.

Today’s

Questions

1. Which of these might be a strength?

a. Many suppliers

b. Low entry barriers

c. Economic recession

2. Which of these might be a threat?

a. Many suppliers

b. Low entry barriers

c. Economic recession

3. Which of these might be a weakness?

a. Many suppliers

b. Low entry barriers

c. Economic recession

7 ________________________

BUSINESS STRATEGY MONDAY

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By Jeremy Schaar

Before a company can begin any strategy, they should understand their industry. The most popular way to do this is to create a SWOT. SWOT stands for: Strengths, Weaknesses, Opportunities, and Threats. Today on the blog, you’ll learn what a SWOT is and how to create one for your industry. You’ll learn the vocabulary associated with making a SWOT and be better prepared to discuss your industry in English.

SWOT charts are often created for specific companies, but this post is about industries. It’s important to understand your own company, but you should always begin by understanding your industry.

Strengths

These are the things that are good for your industry.

Examples of Strengths: large customer base, high margins, many suppliers, few competitors, high barriers to entry

Weaknesses

These are the things that make life hard in your industry

Examples of Weaknesses: low switching costs for customers, intense competition, few barriers to entry, high production costs

Opportunities

These are things that might help your industry improve in the future. They’re like future strengths.

Examples of Opportunities: Potential markets, technology breakthroughs, expanding the product line, expanding the customer base

Threats

Threats are like future weaknesses. They’re the things that might make life in your industry harder in the future.

Examples of Threats: fewer entry barriers, political problems, more powerful suppliers,

Here are two simple SWOT charts

Car Industry SWOT

 

Restaurant Industry SWOT

So, can you think of additional items for these industries? Leave your ideas in the comments.

Got questions or comments? How about practicing some new vocabulary and posting your thoughts on the blog, Facebook, or Twitter?

CHECK YOUR ANSWERS!

Answers To Today’s Questions

A, C, B

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You Can Do It All Yourself But You Dont Have To

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