SINA Corporation: Internal Factor Evaluation

SINA Corporation: Internal Factor Evaluation
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SINA Corporation: Internal Factor Evaluation
An Internal Factor Evaluation (IFE) Matrix refers to a strategic tool that is commonly utilized in evaluating the internal environment of a business organization as well as to identify the company’s weaknesses and strengths. Also, the matrix offers the basis for the identification and evaluation of relationships amongst the company’s major weaknesses and strengths (David, 2013). The IFE Matrix is often used in strategy formulation. Strengths denote the things that the company does better than its competitors or what it has more value than its competitors have (David, 2013). Weaknesses, on the other hand, comprise areas of the organization that could be improved to allow the firm to catch up with its rivals (David, 2013). In this paper, an IFE is performed for SINA Corporation. The internal factors consist of the weaknesses as well as strengths within the internal environment of the firm. A total of eight internal factors are identified comprising four strengths and four weaknesses.
Internal Factors
Strengths
Strong Financial Position: SINA Corporation has a strong financial position considering that every year, it posts annual revenues that exceed $1.5 billion (Sun, 2018). This strength will positively impact the company. Having a strong financial standing is important to SINA Corporation’s future strategy in that it will enable the company to invest in research and development, offer new products and services, and even expand internationally further into more countries since it has the financial capacity to do so. Therefore, this factor is assigned a Weight of 0.2, Rating Score of 4 and a Weighted Score of 0.8.
Significant Market Share: in its various platforms, SINA Corporation has more than 100 million registered users, which is indeed a large number of users (Sun, 2018). This is a clear indication that despite intense competition in the marketplace, the firm continues to enjoy a significant percentage of the market. This is a factor that will positively impact the company. Having a significant share of the market is important to the future strategy of the firm given that the firm would be able to exploit this market share to boost sales and profits. This factor is thus assigned a Weight of 0.1, Rating Score of 4 and a Weighted Score of 0.4.
Has an International Presence: Through its online site SINA.com, the company serves Chinese communities in different parts of the world besides Mainland China, for instance, Hong Kong, Taiwan, and North America. The sites comprise of Chinese-language news as well as content that is organized into interest-based channels (Reuters, 2018). This factor will have a positive impact on the firm. Having a presence internationally is important to SINA Corporation’s future strategy as the company can use this factor to reduce its over-dependence on Mainland China for sales. Hence the factor is assigned a Weight of 0.1, Rating Score of 3 and a Weighted Score of 0.3.
Offers diverse services and products: the company has diversified into several media platforms. These include Weibo, Sina Network, and other ...