Strategic Plan: SWOTT Analysis and Matrix
A detailed SWOTT analysis can provide several important benefits to a growing company. Mobile Device Repair Crew operates in a fast paced environment that sees constant changes in the overall business climate. Low barriers to entry make the device repair industry very desirable to startup companies with minimal capital, which creates a highly competitive landscape. Both internal and external factors can have an effect on the future success of the company. By analyzing the strengths, weaknesses, opportunities, threats, and trends of these factors we can develop a strategy that will help the company achieve a dominating position in the market. This data will be presented in a SWOTT matrix that covers each topic in detail.
About this Essay
- Student: Cindy15
- Textbook: Strategic management: Formulation, implementation, and control
- Course: BUS/475
- About: Create a SWOTT table summarizing your findings. Your environmental analysis should take into account, at a minimum, the following factors. For each factor, identify the one primary strength, weakness, opportunity, threat, and trend, and include it in your table.
The SWOTT analysis is effective because it has the ability to identify the strategic advantages and disadvantages of a business venture (Pearce 2009). Once the advantages and disadvantages are discovered, an informed decision can be made on the strategic direction of the company. As a hypothesis, it is expected that this analysis will help the company allocate resources more effectively and improve its most vulnerable weaknesses. The company is striving to build its brand as quickly as possible, therefore it is of utmost importance to mitigate risks that could slow down or prevent growth.
External forces and trends are those that occur outside the organization. Although Mobile Device Repair Crew does not have direct control over these factors, it is important to recognize them and seek out a position that is well adapted to the changing business climate. When it comes to external factors, it is essential to describe their opportunities, threats, and trends during the SWOTT analysis.
Technology and innovation are key external factors for the Mobile Device Repair Crew business model. These factors describe the technology that is developed by large corporations and the methods Mobile Device Repair Crew will use to repair mobile devices. The company’s service is centered on repairs for laptops, tablets, and phones, and it is important to keep up on the latest trends within the industry. Failing recognize new opportunities that exist within these factors will cause the company to lose new clients that have devices that exceed the company’s capabilities.
Competition is perhaps the most important external factor for the overall strategic plan. The company must make an effort to differentiate itself from the competition in order to build a recognizable brand (McNamara 2013). Achieving this goal will require intellectual property that provides a superior image of the company when compared to its main competitors. Creating a specific image will help build a brand loyalty that cannot be matched by similar firms.
Social factors describe the role that the local community plays in the operation of the business. A goal of the company is to build a positive relationship with the community that will promote favorable discussions about the services provided. Social media makes it possible to interact with the community on a wide scale, which can be used as a tool to help achieve this goal.
Global forces present the opportunity for growth of the brand outside the United States (Pearce 2009). As countries become more reliant on mobile devices, it is expected that more countries will need a reliable repair service. As the brand becomes more recognizable in the US, the ease of integrating into international markets will become more realistic.
Legal factors could be a major external concern for Mobile Device Repair Crew. Many device manufacturers use encrypted data that prevent 3rd parties from making repairs (IBISWorld 2013). This trend could prevent repairs on certain devices and reduce the size of the overall market in this industry. Staying on the leading edge of legal trends will ensure that the business can adapt to changes like this.
Internal factors are those that occur within the organization. Company management, stakeholders, and employees are the driving elements behind internal forces (Pearce 2009). Mobile Device Repair Crew must be diligent about aligning its internal processes and systems with the mission of the company. At the top of internal factors is leadership, which is responsible for the communication of the mission and vision of the company. Effective leadership will insure that internal factors and well understood and can be modified to help achieve long-term goals.
Intellectual property is an important consideration for any mobile device repair company. Because the company does not own the intellectual property of the devices it repairs, it must be careful not to use unauthorized trademarks in its marketing material. However, the company has full control over its own brand and should harness the potential of marketing and advertising.
Based on the internal and external factors described above, there is a clear strategic path that the company can follow. Because Mobile Device Repair Crew operates in an industry that is highly volatile, it is essential to use aggressive branding to build a positive image. The service itself is not unique, but the brand has the ability to make it appear superior in relation to the competition (McNamara 2013). In addition, the use of innovative business processes will allow the company to offer pricing that more affordable than similar alternatives.
Internally, the company should build upon its strengths of leadership and strategy to continue building an exceptional brand presence. When all employees have been trained to communicate the company’s vision to the general public, the expected result is a positive relationship with the targeted customer base. Similarly, the company can use these same tactics to improve upon its weaknesses. As time progresses, the company will acquire more resources that can be invested towards building a strong organizational culture and high quality marketing material.
|Technological||The perpetual release of new technology will keep business consistent.||New tech is being developed at a rapid rate.|
|Innovation||A commitment to innovation will allow the company to offer an industry leading service|
|Competition||Build a stronger reputation than existing competition.||There are established competitors in our key markets||Low barriers to entry make this industry competitive|
|Social||We aim to establish a strong relationship with the local community|
|Environmental||The company uses environmentally friendly practices||Environmental issues are important to the community.|
|Global||Global companies could increase competition in our market.|
|Legal||Legal barriers could prevent us from fixing encrypted devices.||Encrypted data is growing in importance to protect user privacy.|