Discuss the below:
Compare your posting with that of your colleague, including insights on using SWOT analysis in evaluating business strategies.
In what ways do you agree or disagree with your colleague on which parts of a SWOT analysis provide the greatest value for this organization, and how can this enhance or expand on your perspective as an independent scholar?
Provide a suggestion for an additional example of the benefits of the SWOT results for this organization to better support your colleague's posting, including a rationale for your suggestion.
The global consumer electronics industry has had several changes in industry leadership over the past century. Philips was the first leader in the industry due to high centralization. The organizational eventually decentralized which led to decreased market share when Panasonic and Sony expanded. Eventually Samsung became the global leader in consumer electronics though product innovation and design (Bryce, Dyer, Godfrey, & Jensen, 2016).
If a firm in the consumer electronic industry conducted a SWOT analysis, the greatest value would come from the threat analysis. New technology consistently led to changes with consumer electronic industry leaders (Bryce, et al. 2016). Threat of substitutes poses a significant risk as firms from other countries have historically gained significant market share through substitutes (Harvard Business Review, 2014). An example is Samsung's choice to pursue digital technology while its Japanese rivals chose to use analog technology. (Bryce, et al. 2016).
Intense rivalry is another industry threat due to high imitation. Styles and Goddard (2014) describe imitation as a "maturity trap" that drives down profits. Intense rivalry led to Panasonic reverse engineering Sony's products as part of their strategy. Mark and Mitchell (2014) observed competing firms with simliar products leading to increased buyer power. Although imitation may allow a firm to compete temporarily, industry leaders typically change as a result of innovative technology.
Useful data could may originate from social media. Rajasekera (2013) observed firms addressing consumer concerns quickly via social media. If consumers demand adjustments or modifications to existing products, consumer electronics firms may have an opportunity to become a first mover in a product category. If this data is captured by a competitor, a new threat may emerge.
A SWOT may increase innovation by determining the strengths and weaknesses of a firm. A firm's culture and leadership may indicate if a firm is prepared to embrace innovation or change (Chatman, 2014; Kotter, 2001). Innovation may require culture change and increased leadership support to be successful. A SWOT analysis may indicate a firm is risk-adverse, which means innovation is one of the firm's weaknesses.