SWOT Analyses
SWOT is an acronym for strengths, weaknesses, opportunities and threats related to organizations. The following table illustrates WeWork SWOT analysis: Strengths 1. Strong liquidity 2. International presence 3. Experience 4. Brand recognition Weaknesses 1. Business has not achieved profitability 2. High level of indebtedness 3. Damaged company image 4. Business model easy to replicate Opportunities 1. Entering into strategic collaborations 2. Strengthening WeWork ecosystem 3. Finding new sources of competitive advantage 4. Increasing marketing efficiency Threats 1. Inability of Sandeep Mathrani to turn around the business 2. Members seeking payment concessions or deferrals or cancellations 3. Emergence of new competitors with innovative business models 4. Changes in customer attitudes towards shared workspace WeWork SWOT Analysis Strengths in WeWork SWOT Analysis 1. WeWork has a strong liquidity. As of December 31, 2021, the company had access to USD2.0 billion of liquidity in the form of cash and commitments from its lenders. Strong liquidity offers a range of benefits for the workspace provider such as ability to meet short-term debts and dealing with unforeseen circumstances. 2. The global flexible workspace provider operates a network of 756 locations in 38 countries as of December 2021. Global presence offers a range of advantages for the workspace provider. These include economies of scale, access to local talent and opportunity to increase revenues. 3. WeWork had to deal with a range of serious issues such as ineffective management, severely flawed corporate culture and starting many initiatives at the same time. These setbacks damaged the brand image to a considerable extent. At the same time, it can be argued that the process of having to go through these problems have been a valuable experience for employees at all levels. Specifically, thanks to these issues WeWork employees at all levels are more mature now and they…
SWOT is an acronym for strengths, weaknesses, opportunities and threats related to organizations. The following table illustrates Starbucks SWOT analysis: Strengths 1. Extensive, but focused brand portfolio 2. High profit margin and solid financial position 3. Market leadership in the global scale 4. Customer services and brand positioning 5. Increasing presence in emerging economies Weaknesses 1. Overly dependence on the US market 2. Overly expensive prices 3. Brand image weakened due to a number of incidents 4. Extensive dependence of revenues on Arabica coffee beans price 5. Imitable products and competitive advantage Opportunities 1. Diversification of business 2. Increased focus on organizational ethical behaviour 3. Entering into strategic cooperation 4. Reforming the pricing structure 5. Increasing focus on mobile ordering Threats 1. Leadership failure by new CEO Laxman Narasimhan 2. Dramatic increase of coffee beans costs 3. Decline in consumption of coffee due to health concerns 4. Emergence of direct and indirect competition 5. Disruption in supply-chain Starbucks SWOT Analysis Strengths in Starbucks SWOT Analysis 1. Starbucks Corporation maintains an extensive, yet highly focused brand portfolio. At the same time, all brands belonging to Starbucks portfolio including Teavana, Tazo, Seattle’s Best Coffee, Evolution Fresh, La Boulange and Ethos are popular drinks and beverages of premium class. The company also sells merchandise products such as coffee- and tea-brewing equipment, Verismo® System by Starbucks, mugs and accessories, packaged goods, books and gifts. Starbucks is able to apply its competitive advantage and extensive experience in the promotion and sales towards each product within its portfolio thanks to the shared features of these products associated with high quality for a premium price. 2. In fiscal year 2021 Starbucks generated consolidated revenues of USD 29,1 billion an increase of 24% compared to the previous year. The global coffeehouse chain enjoyed a…
SWOT is an acronym for strengths, weaknesses, opportunities and threats related to organizations. SWOT analysis is a strategic tool that helps businesses to analyse internal and external factors affecting the bottom line. Strengths and weaknesses are internal factors that can be influenced by the company. Opportunities and threats, on the other hand, are external factors that have to be taken into account in strategic decision-making by the senior management. The following table illustrates IKEA SWOT analysis: Strengths 1. Market leadership in the global scale 2. Democratic design concept 3. Competency in cost-cutting through product and process innovation 4. Brand value and solid financial position 5. Vast, yet focused product range Weaknesses 1. Weak presence in Asia 2. Damaged reputation due to a series of incidents 3. Competitive advantage difficult to sustain 4. Lack of differentiation of IKEA products and services 5. Lack of flexibility due to large size Opportunities 1. Increasing emphasis on CSR 2. Increasing presence in developing countries 3. Adding premium range of products into portfolio 4. Strengthening cost leadership competitive advantage through technological innovation 5. Benefiting from increasing digitalization of various business processes Threats 1. Decline in demand due to increase in consumer income 2. Unsustainability of ‘democratic design’ concept 3. Emergence of competition from Asia 4. Increasing costs of raw materials 5. Global economic and financial crisis SWOT Analysis summary for IKEA Strengths in IKEA SWOT Analysis 1. IKEA is an undisputed market leader in the global market of home improvement and furnishing. The Swedish furniture chain has 11 franchisees operating in more than 500 locations in 63 countries.[1] Additionally, the furniture retailer has 22 Pick-up and Order…
SWOT is an acronym for strengths, weaknesses, opportunities and threats related to organizations. The following table illustrates McDonald’s SWOT analysis: Strengths 1. Global market leadership 2. Brand value and brand awareness 3. Sustainable business model 4. High level of profitability 5. Effective utilization of digital technologies Weaknesses 1. Unhealthy food on the menu 2. Declining brand image 3. High employee turnover 4. Negative publicity 5. Low differentiation Opportunities 1. Enhancing focus on nutritional menu 2. Product differentiation 3. Improving CSR aspect of the business 4. Reviving the brand image 5. Increasing the extent of localization in international markets Threats 1. Food safety concerns 2. Fast food market saturation in developed countries 3. Lawsuits against the company 4. Currency fluctuations 5. Competition from quality burger chains McDonald’s SWOT analysis Strengths in McDonald’s SWOT Analysis 1. McDonald’s is an undisputed market leader with more than 40000 restaurants worldwide. The fast food giant has a global market share of about 43,8% and its closest competitor Yum Brands that comprises KFC, Pizza Hut, Taco Bell and The Habit Burger Grill has a market share of only 30,9% in the global fast food industry.[1] Market leadership is a considerable strength for McDonald’s in terms of generating cash flow and profits for medium and long-term perspectives. 2. McDonald’s is one of the most valuable brands in the world. According to Forbes McDonald’s is No. 10 most valuable brand in the world with the brand value of USD 46,1 billion[2]. Similarly, Interbrand considers McDonald’s No.9 most valuable brand in the world with the brand value USD 45,87 billion.[3] Brand value and brand awareness are proved sources of competitive advantage. Specifically, brand value is an indicator of a high level of consumer loyalty and it offers a wide range of advantages that include negotiating power with customers…
SWOT is an acronym for strengths, weaknesses, opportunities and threats related to organizations. Amazon, as the e-commerce and cloud computing company worldwide needs to build upon its strengths at the same time reducing negative impact of its weaknesses on the bottom line. Moreover, it is important for the company to take advantage of opportunities and adopt a proactive approach in dealing with threats in the marketplace. The following table illustrates Amazon SWOT analysis: Strengths 1. Market leadership in the global scale 2. Strong ecosystem of products and services 3. Cost leadership due to efficient cost structure 4. Customer-centricity 5. Brand value Weaknesses 1. Business model that can be imitated 2. Seasonality of the business 3. Weak competitive position of Amazon’s Fire Phone 4. Damage to the brand image due to tax avoidance controversies in USA, UK and Japan 5. Working conditions for warehouse workers Opportunities 1. Diversification of e-commerce business segment 2. Increasing focus on own brand products and services 3. Increasing physical presence of the brand 4. Developing more local sites in international markets 5. Intensifying backward integration Threats 1. Patent infringement and other lawsuits against the company 2. Weakening of industry entry barriers 3. Threats to online security 4. Andy Jassy failing to fill Jeff Bezos shoes effectively 5. Backlash towards the brand Amazon SWOT analysis Strengths in Amazon SWOT Analysis 1. Amazon is an undisputed market leader in online retail and cloud computing segments. The e-commerce giant generated USD 386 billion revenues and earned a net income of USD 21,3 billion in 2020 alone[1]. Dubbed as The Everything Store, Amazon sells hundreds of millions of products of its own and third-party sellers. Current market leadership position grants the tech giant upper hand in the competition in a number of ways such as economies of…
SWOT is an acronym for strengths, weaknesses, opportunities and threats related to organizations. Strengths and weaknesses are considered as internal to the business and companies can change them. Opportunities and threats, on the other hand, are external in a way that companies cannot influence them. The following table illustrates Square SWOT analysis: Strengths 1. Strong leadership by Jack Dorsey 2. Strong brand value 3. Effective ecosystems 4. Impressive growth rate of the business Weaknesses 1. Lack of global presence 2. High employee turnover 3. Dependence on payment cards networks 4. 4. High costs of operations Opportunities 1. International market expansion 2. Developing new products and services 3. Diversification 4. Support from governments Threats 1. Jack Dorsey conflict of interest or burnout 2. Increasing complexity of the business 3. Cyberattacks 4. 4. Emergence of new competitors Square SWOT analysis Strengths in Square SWOT Analysis 1. Square co-founder and CEO Jack Dorsey is a serial entrepreneur with proven leadership skills and business acumen. Dorsey successfully exercises purpose-driven leadership and his purpose at Square is making it easier for everyone to particulate in the economy. Moreover, Jack Dorsey is also a proven innovator and he is often compared to Steve Jobs, justifiably so. Dorsey’s effective leadership and innovative potential may play an instrumental role in expanding Square portfolio with more innovative products and services with positive implications on the long-term growth of the business. 2. Square market capitalization is more than USD 113 billion as of September 2021[1] As illustrated in figure below, Square stock value has increased more than 27 times from USD 9,00 since its IPO in October 2015 to its current USD 247,90. Specifically, market capitalization of the payments company soared during the past year once user conveniences associated with Square products and services became evident to a wider customer…
SWOT is an acronym for strengths, weaknesses, opportunities and threats related to organizations. The following table illustrates Uber SWOT analysis: Strengths 1. First mover advantage and global market leadership 2. Low operational costs 3. Effective implementation of ‘Think Global, Act Local’ strategy 4. Uber ecosystem 5. High levels of user convenience Weaknesses 1. Damaged brand image due to a series of various scandals 2. Increasing losses of the business 3. Uber business model is easy to imitate 4. Only technically savvy individuals can use Uber services 5. Low earnings by Uber drivers Opportunities 1. Increasing popularity of sharing economy 2. Self-driving cars 3. Improving brand image through CSR programs and initiatives 4. Increasing internet penetration in the global scale 5. Increasing service range Threats 1. More legal actions in certain countries to ban Uber from operating 2. Further intensification of competition 3. The risk of new scandals and ethical issues 4. Growing protests and retaliations from traditional taxi services 5. Drivers leaving Uber due to low earnings Uber SWOT analysis Strengths in Uber SWOT Analysis 1. Uber is the largest global taxi technology company in the world and it has a first mover advantage in the ride-hailing segment in the global scale. The company has effectively utilised its fist mover advantage to build momentum and achieve global expansion in a short period of time. Moreover, thanks to first-mover advantage, the word Uber has become synonym for ride-haling internationally and the new term uberisation has emerged describing commodisation of various services. Uber is an undisputed market leader in ride-haling the global scale. The largest mobility platform in the world has more than 93 million monthly active riders in approximately 10000 cities worldwide. As illustrated in figure below, Uber is much more popular than its closest rival Lyft in the largest…
SWOT is an acronym for strengths, weaknesses, opportunities and threats related to organizations. The following Table 1 illustrates Tesla SWOT analysis: Strengths 1. First mover advantage 2. Increasing numbers of vehicles sales 3. Expertise in innovation 4. Brand equity Weaknesses 1. Expensive price tags of Tesla vehicles 2. Huge amount of debt (USD 11.69 billion) 3. History of over-promising and under-delivering the quantity of vehicles 4. Limited global presence Opportunities 1. Development of lower priced models 2. Strengthening of Tesla ecosystem 3. Shifts in consumer environmental attitudes 4. More government incentives Threats 1. Manufacturing delays risks 2. Crashes and fires in Tesla cars 3. Threat of new competition 4. Decrease in the price of oil Table 1 Tesla SWOT analysis Strengths in Tesla SWOT Analysis 1. Tesla benefits from the first mover advantage in alternative fuel vehicles manufacturing to a considerable extent. The company was established in 2003 with the mission “to accelerate the world’s transition to sustainable energy”, right after auto giant General Motors recalled and destroyed its EV1 electric cars.[1] Today, Tesla is an undisputed global market leader in electric vehicles segment. It can be argued that being the first global company exclusively focusing on electric vehicles, Tesla is in a good position to achieve a long-term growth. 2. The numbers of electric vehicles sold by Tesla has been increasing. As illustrated in Figure 1 below, the alternative fuel vehicles manufacturer delivered 180,000 vehicles in the last quarter of 2020. Increasing numbers of vehicles sales is strategically important for the company in a way that it allows benefiting from economies of scale and consequently, the alternative fuel vehicles manufacturer can become more profitable. Figure 1 The numbers of Tesla vehicles delivered worldwide[2] 3. Innovation is placed at the core of Tesla business strategy and…
SWOT is an acronym for strengths, weaknesses, opportunities and threats related to organizations. The following table illustrates Apple SWOT analysis: Strengths 1. High quality, design and performance of Apple products and services 2. Brand value of more than USD 1 trillion 3. High profit margin 4. Solid financial position of the business 5. Sophisticated supply-chain infrastructure Weaknesses 1. Decline of sales in China 2. Decreasing sales of iPhones 3. Higher prices than competition 4. Incompatibility of Apple products and services with other products and services for users 5. Lack of innovation Opportunities 1. Further increasing concentration on Services business segment 2. Increasing focus in research and development 3. Product diversification 4. Formation of strategic partnerships 5. Increasing focus on green technology Threats 1. Disruptions due to coronavirus pandemic 2. Quality problems with negative effects on sales and Apple brand image 3. Intensifying competition from China and India 4. Being found to have infringed on intellectual property rights 5. Reputation damage due to the tax scandal Apple SWOT analysis Strengths in Apple SWOT Analysis 1. High quality of Apple products and services in terms of design and performance is the main strength of the company. Co-founder and late CEO Steve Jobs never compromised design and functionality because of the cost of raw materials and manufacturing. The same principle persists to this day. The tech giant pursues differentiation business strategy and effectively differentiates its products and services with high quality, design and performance. Moreover, highly sophisticated Apple ecosystem plays an instrumental role in maintaining brand loyalty and consequently sustaining market share in the global scale. Specifically, third-party products are not usually compatible with Apple products and all products belonging to Apple portfolio work well with each-other. Thanks to services such as iCloud, airplay, and airdrop, you can start a task in…
SWOT is an acronym for strengths, weaknesses, opportunities and threats related to organizations. The following table illustrates W.W. Grainger SWOT analysis Strengths 1. Experience, competence and knowledge in selling MRO products 2. Economies of scale 3. An extensive product range 4. Increasing share of sales via e-commerce Weaknesses 1. Substantial indebtness 2. Overdependence on home market in the US 3. Vulnerability to Amazon Business 4. Ineffective marketing strategy Opportunities 1. Increasing integration of Artificial Intelligence into various business processes 2. Engaging in value added activities for customers 3. Pursuing international market expansion strategy into developing countries 4. Emergence of competitor vulnerabilities Threats 1. Increasing strength of local distributors due to COVID-19 pandemic 2. Further loss of market share to Amazon Business 3. Inability to sustain competitive advantage 4. Changes in currency exchange rates. W.W. Grainger SWOT Analysis Strengths in W.W. Grainger SWOT Analysis 1. Established in 1925 by William W. Grainger – motor designer, salesman, and electrical engineer as a wholesale electrical sales company, by now the B2B distributor has an extensive experience of more than 90 years in industrial distribution. In-depth technical knowledge due to experience and know-how serves as a competitive advantage for the business and it plays an instrumental role in further expansion of product categories. 2. Grainger derives massive benefits from the economies of scale. The industrial products distributor sells about 1,7 million types of products supplied by about 5000 suppliers worldwide to more than 3,5 million customers internationally.[1] Immense scale of business operations allows Grainger to source products in bulk, negotiating low purchasing prices. Moreover, economies of scale benefit the business in terms of inbound logistics, warehousing and outbound logistics of products to end-users. 3. Arguably, Grainger covers the greatest range of MRO products among distributors worldwide. Unlike B2C business, in B2B distribution inclusion…