Strengths, Weaknesses/Limitations, Opportunities, and Threats

What was the main element weakness that Skoda was able to identify?

One of the successful global brand is Skoda, which producesses their products in the current strong competitive market. To be able to have more competitive edges and much more shares in market, Skoda identify their inside weaknesses and try to reduce them. Internal weaknesses are the things that business bad at, that it's inadequate at or that this has an unhealthy reputation for. It also includes the factors that cause losses, hardships, disputes, grievances and complaints for an enterprise.

There are some key weaknesses that Skoda needs to improve such as their market show which is only 1, 7%, with this small market show they can not contend with their competitors that has more market stocks than Skoda. This is because Skoda is mainly known as very poor vehicle quality, design, set up, and materials in Eastern Western. That is why customers already have negative ideas about Skoda's products. Skoda try to change their negative image from 1999 onwards, under Volksagon AG ownership. They modified their image and make an effort to show that Skoda's cars are not low quality or poor anymore. They want to show others they are strong competitors as well. However, a brand 'health check' in 2006 revealed the effect which Skoda will not want. The effect was Skoda still had a minimal image in their market comparing with other brands such as Ford, Peugeot who already known as high quality products. All in all Skoda is no longer poor quality brand, it did not have a higher image either.

What strength did Skoda use to carefully turn its brand weakness into an opportunity?

Strengths are things that a business and its own staff are effective at and well known for. When company's use their advantages and make more revenue than their competition we call it their strengths. With their talents company's lead to confidence in the market and it triggers customers to come back again plus they became faithful customers for that business. It sometimes cause other businesses to try to study from them.

Opportuniyies will be the directions that the business enterprise could profitably ingest future because of its strengths or as a result of reduction of its weaknesses. This involves a consideration of the business environment from the widest and most creative possible standpoints.

In this case study Skoda's strategy was focused on their existing advantages and take more features of the opportunities on the market. In order to identify their own strengths and weaknesses Skoda UK done some research about their products and services from customers. The result of this research shows that Skoda's customers are very content with their vehicles and voted Skoda the 'amount one car in the market'. Skoda focused on owner experience alternatively than revenue which brings more durability to the company. For their good customer support Skoda's 98% of customers would reccommend Skoda to others such as their relatives and buddies. This is one of the biggest durability that Skoda has, even the brand known to others with the poor image and low-quality products, their client satisfaction would increase their sales more than their opponents who only cares for their product quality. In other words Skoda's competitors focused on only products and sales that is why Skoda take this to their opportunity and centered on their customer satisfaction. Skoda's unique advertising proposition (USP) focused on happy Skoda customers and it allows them to identify the brand from others.

How has Skoda strategically tackled external hazards?

Threats are exterior factors which may be negative impact for your business. Threats to a small business arise from the activities of competition and from failing to take opportunities or even to build on successes. Dangers also come from complacency, too little rigour, and from falling profits, perhaps anticipated to growing costs.

Understanding and analysing their treats is vital for the SWOT process. Skoda is contending very crowded and high competitive environment. That's the reason they need to use strong strategy in order to obtain additional competitive edges. United Kingdom is big market for car industry, there are fifty different car brands retailing 200 models. In order to survive from this market Skoda make sure that their customer segmentation and marketing is very effective and results should be possitive. If they can not do that other competitors and customers would underestimate Skoda. Another thing that Skoda needs to do in order to remain competitive in UK is increase their product range. They have seven different cars which signifies Skoda in UK. Each of them are made especially for their customers and priced to appeal to different market segmentation groupings.

Another external dangers that Skoda addressed was their Corporate Friendly Responsibility (CSR) regarding to European union legal and environmental rules. Skoda found their ways to be responsible for the social. For instance, they were recycling up to they can and using latest making technologies which are not harming the environment. They even got technology to design their autos with lower sound levels and developed sound quality.

What in your view are the important advantages of using a SWOT examination?

One of the very most popular and useful evaluation for business is SWOT evaluation. Most businesses analyse their current position by using SWOT evaluation, which identifies their internal strengths and weaknesses and the exterior hazards and opportunities facing a business.

Business evaluation is the examination of the 'how, what, why' of business activity. It can help to company to analysing the possible internal problems and advantages a business has. It could determine the factors exterior to the business that could influence its strategy. The results of analysis should be to find the organisation's advantages and features, its commercial and functional advantages and the wider basic pressures and constraints on the business enterprise which is actually useful for any business. Businesses have a number of solutions to carry out research. The purpose of SWOT examination is to conduct an over-all and quick examination of a business's current position so that it can identify preferred and likely guidelines in future. The analysis is often completed as a brainstorming talk. It is an effective way of gathering and categorising information, illustrating particular things and producing interest available and its activities quickly. Another profit for SWOT analysis could it be often used as a method where marketing departments can plan its marketing strategy. It is simple way to understandts your own errors and weaknesses to be able to boost your opportunities making use of your strengths. Using SWOT evaluation would bring a huge success to your business.

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