Swot Analysis: Performance Of Organizations

SWOT Analysis
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SWOT Analysis
Strategies that managers pursue greatly influence the performance of their organizations. However, they should base their choice of strategies on certain decisive factors. Strategies incorporate strength and weaknesses and opportunities and threats. The factors will improve the performance and competitiveness of the business. However, the jewelry sector is a unique industry that needs constant market research to increase its market share and remain competitive.
A jewelry company within the industry can enjoy strengths within the industry. Strengths come from resources that give a company competitive advantage over the competitors. The strengths that a company in the jewelry can exploit include the existence of strong relationships with suppliers and galleries, and comprehensive distribution networks (Chen, Liu, & Yen, 2015). Additionally, the industry enjoys high-quality jewelry which is available at competitive prices, skilled workforce, and a good inventory management (Chen, Liu, & Yen, 2015). Similarly, a company within this industry can suffer from weaknesses. Weaknesses are factors that limit a company from maximizing profits. In the industry, weaknesses include overpaying employees and suppliers and poor location of stores.
The solution to the weaknesses includes finding external opportunities that could boost your company’s profits. Managers should analyze and utilize new trends within the market too. This is because the company can utilize the prospect of a new line of jewelry that is attracting more and new customers. The company can also realize a new distribution channel that is cheaper and can help the company reach more customers faster (Chen, Liu, & Yen, 2015). The company should consider expanding its location to eliminate a location weakness. These strategies can increase profits of the company and boost its growth.
The jewelry industry has many opportunities that make it remain a lucrative business, but it has threats too. The business enjoys the increased market share which is an opportunity for more profits. New advanced technology leads to creation of modern designs which attract more customers (Peteraf, Gamble, & Thompson Jr., 2014). Similarly, threats to this business include the presence of counterfeits in the market. There is high competition in the market too. The US jewelry market is fragmented with many firms which pose a great threat to the companies.
To overcome the threat of market challenges in the industry, there are several approaches that can be adopted to influence a sound decision by the companies. With the industry involving many players, a business should capitalize on the demand strength and pursue its objectives to improve the competitiveness and performance in the market (Chen, Liu, & Yen, 2015). Companies can also use the grand strategy cluster model. This strategy offers companies the best approach to review their performance. A company that enjoys a strong competitive state should analyze its own performance and make choices from available alternatives. These alternatives include vertical diversification, conglomerate diversification, and joint ventures.
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