Company
I take A&A Software Ltd. Company as a model. I will analyze how this company’s external environment and assessment of internal strengths and weaknesses can identify strategic opportunities and threats.
This company is one of the well - known companies in the city with its principles and working conditions. Nowadays, there is a very heavy economic crisis in Turkey and many companies are closing doors and so many employees are looking for job. This company is a lucky company, because they are dealing with computers and with developing technology computers started to control our life. This company is not a subsidiary of any company. That is, it operates independently.
The SWOT analysis has been a useful tool for industry. The process of utilizing the SWOT approach requires an internal survey of strengths and weaknesses of the program and an external survey of threats and opportunities. Structured internal and external examinations are unique in the world of curriculum planning and development. The external environment has a profound impact on educational institutions.
This company’s strength is its financial resources because, this company sells its products to generally other computer companies as well as agreement - based companies and to many customers so every year earns billions. The company response very quickly. It doesn’t need for higher management approval. It is able to give really good customer care. It’s lead consultant has strong reputation with in the market. It can change direction quickly if it find that it’s marketing is not working. They can offer good value to customers. All the employees are professional and the company has a good organization. It is successful and it’s growing day by day. Every annual report is more successful than the last one. The manager is talent and designs intelligent ideas which adopts to the local market and the customers.
The view through a strategic window shows planners a way to relate potential opportunities to company capabilities. The explosive growth in internet services and in the users is creating a strategic window that allows computer and chip - maker manufacturers to compete more effectively against industry giants like Microsoft.
This company has some weaknesses like the other companies. The company has a big number of staff and it is vulnerable to vital a staff being sick, leaving, etc. Because of the inflation and unexpected devaluation, the company looses unexpected amounts from it’s profit in some periods because, they pay for the programs in US dollar.
Some opportunities of the company are its business sector is expanding with many future opportunities for success. The demand and the supply is very important. The increase of the customers encourage the company to take more risks in different fields. The company’s competitors may be slow to adopt new technologies. Develop a working relationship with other companies in producing new programs and also face to face dialog with customers are some other opportunities for the company.
The company faces a threat that, a small change in focus of a large competitor might wipe out any market position which the company achieves. Credibility of the organization will be negative if it is not successful. Lack of customers is also a threat.
The external environment of the company depends on economy, society, political structures and even individual life styles which are poised for new changes. SWOT analysis provides a framework to focus better on serving the needs of their communities.
SWOT usually reflect a person’s existing position and viewpoint, which can be misused to justify a previously decided course of action rather than used as a means to open up new possibilities. It is important to note that sometimes threats can also be viewed as opportunities, depending on the people or groups involved. There is a saying “ a pessimist is a person who sees a calamity in an opportunity, and an optimist is one who sees an opportunity in a calamity”.
As a summary a SWOT analysis can be an excellent, fast tool for exploring the possibilities for initiating new programs in the company. It can also be used for decision making within departments or even by individuals. It is a relatively simple way of communicating ideas, and policies. It can help individuals to quickly expand their vision. Probably the strongest message from a SWOT analysis is that, whatever course of action is decided, decision making should contain each of the following elements:
Building on Strengths
Minimizing Weaknesses
Seizing Opportunities
Counteracting Threats
In order to be most effectively used, a SWOT analysis needs to be flexible. Situations change with the passage of time and an updated analysis should be made frequently. SWOT is neither cumbersome nor time – consuming and is effective because of its simplicity.
I choose A&A Software Ltd. Company to describe its target market. Today, marketing activities must focus on the customers more than ever with the growing presence of computers in business. A market – driven organization begins its overall strategy with a detailed description of its target market. The target market section of the companies business plan must clearly identify the current and prospective buyers of the company’s products and services. The goal in preparing the target market section is to demonstrate people who the customers are and how to product and services directly meet the needs of the marketplace.
The specific environment is that part of the environment that is directly relevant to the organization in achieving its goals. The specific environment of A&A Company consists of customers, suppliers, competitors, government, labor unions, and trade associations. The domain and specific environment is proportionally related with each other. When the domain changes, the specific environment and the balance between them change too. The specific environment of A&A Ltd Company consists of mostly customers, suppliers and competitors. Since the work involves program sales and program supports, it is carried out with customers in a face-to-face manner. At this point, suppliers are on the front plan. Because, the service supplied consists of the use of package programs that have been solved.
The major marketing management decisions can be classified in one of the following four categories: product, price, place (distribution), promotion. These valuables are known as the marketing mix. The marketing manager in the company controls in order to best satisfy customers in the target market.
The product is the software program and the service to the consumer in A&A Company. Product decisions include aspects such as function, appearance, packaging, service, and warranty.
This company is not the price leader in the market. But because of its advertisements they sell their products more than the other companies. Marketing puts the customers at the center of the organization. Pricing decisions are taken into account profit margins and the probable pricing response of competitors. Pricing includes not only the list price but also discounts, financing and other options such as leasing.
Place decisions are those associated with channels of distributions that serve as the means for getting the product to the target customers. The distribution system performs transactional, logistical, and facilitating functions. Distribution decision making include market coverage, channel member selection, logistics, and levels of service.
A&A Company has 1000 business buyers so it has a quiet large target customers. The customers are usually located in the same or neighbor cities. The technology has made location less of an issue for the company but it is importance of defining the geographic location for the customers. If the company could sale its products to the east of Turkey, it would have more profit. The company sales manager and his team believes that the more they understand their customers, the better their chances of success.
Promotion decisions are those related to communicating and selling to potential consumers. Since the cost can be large in proportion to the product price, a breakeven analysis should be performed when making promotion decisions. It is useful to know the value of a customer in order to determine whether additional customers are worth the cost of acquiring them. A&A Company’s decisions involve advertising, public relations, and media types.
The general establishment target of this company is to open branches and to create a large service network in Turkey. Although, this target has not been achieved yet, it is the company’s future marketing target and strategy. The founder executives of the company have aimed to set up their own company and to become a brand-name in Turkey. With the high performance that it shows, the company is walking towards this target slowly and with safe steps.
STRENGTHS OPPORTUNITIES
Cost advantages Add to product line
Financial resources Enter new markets
Customer loyalty LEVERAGE Acquire firms with
Modem production needed technology
Facilities
Patents
WEAKNESSES THREATS
Too narrow a product line Changing buyer tastes
Lack of management likely entry of new
depth competitors
High cost operation due to Adverse government
high labor cost and policies
obsolete production facilities PROBLEMS
Inadequate finance
capabilities
Weak market image