Limitations of a SWOT analysis and Positioning.

309 words (1 pages) Business Question

3rd Nov 2020 Business Question Reference this

Tags: SWOTInternal AnalysisExternal AnalysisQuestions

Disclaimer: This work has been submitted by a student. This is not an example of the work produced by our Essay Writing Service. You can view samples of our professional work here.

Any opinions, findings, conclusions or recommendations expressed in this material are those of the authors and do not necessarily reflect the views of BusinessTeacher.org.

Question

Are there things that the theory doesn't show/tell/illustrate ? Theories such as SWOT analysis and Positioning ?

Answer

Whilst a SWOT (strengths, weaknesses, opportunities and threats) matrix is a useful tool for management to assess the company’s environment, a SWOT analysis does not prioritise issues in the sense that it gives equal weight to every point. Certain, specific points might be more important to a company in a given period. For example, the decision to outsource an IT department might look good, but for a software company the risks of intellectual property violations alone have a huge (business ending) impact. Furthermore, a SWOT does not provide solutions or alternative decisions and can generate too many ideas but not help you choose which one is the best. Another limitation is that, because a SWOT analysis should be concise and to the point, it can oversimplify a problem. In turn, there will be no depth of explanation or a detailed analysis of multiple factors. To conclude, the simplicity of a SWOT analysis does not provide a mechanism for solving any disagreements that arise from the discussion. Because this technique is often used in a brainstorming or blue-sky thinking environment there is usually little opportunity to verify the statements with hard data or assess the practicalities of implementation. Whilst positioning is a useful conceptual model, care has to be taken when using it in market decision making. Positioning maps are not a guarantee of success. Moreover, if a positioning map identifies a gap, it should be noted that this does not imply that there is an actual demand for that product. It also does not consider the size of the market segment.

References

Cite This Work

To export a reference to this article please select a referencing stye below:

Reference Copied to Clipboard.
Reference Copied to Clipboard.
Reference Copied to Clipboard.
Reference Copied to Clipboard.
Reference Copied to Clipboard.
Reference Copied to Clipboard.
Reference Copied to Clipboard.

Related Services

View all

DMCA / Removal Request

If you are the original writer of this question and no longer wish to have your work published on the UKDiss.com website then please: