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The Vanca Reworking Digital Marketing Strategy SWOT Analysis https://www.case48.com/swot-case/24103-The-Vanca-Reworking-Digit...

The Vanca Reworking Digital


Marketing Strategy SWOT
Analysis
Posted by Jessica Byrne on Apr-24-2018

What is SWOT analysis?


A SWOT Analysis is a powerful tool to develop business strategies for
start-up firms as well as for existing companies. This simple framework
is used to evaluate the positioning of a firm in a competitive market.
SWOT analysis of The Vanca Reworking Digital Marketing Strategy can
lead the company towards making effective and wise business
strategies.

The SWOT stands for-

• Strengths
• Weaknesses
• Opportunities
• Threats.

The internal environmental analysis can help an organisation to identify


its core strengths and weaknesses. Whereas, external environmental
analysis can help the organisation to identify opportunities and threats
that must be considered to ensure long-term business survival. The
Vanca Reworking Digital Marketing Strategy can adapt and control its
strengths and weaknesses (internal factors), but it cannot control the
external factors (opportunities and threats):

• Some examples of internal factors (strengths/weaknesses) are-

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leadership competencies, intellectual property rights, locational


advantages and geographic presence.
• Some examples of external factors (opportunities/threats) are-
customers’ changing tastes and interests, competitive trends,
inflation and population growth.

The Vanca Reworking Digital Marketing Strategy can use the SWOT
matrix to exploit the opportunities and minimise the threats by
leveraging its strengths and overcoming its weaknesses. Usually, it is
presented in the two-by-two grid form. The framework is based on
developing four types of strategies, including-

• Leveraging strengths to exploit external opportunities.


• Overcoming weaknesses to exploit external opportunities.
• Leveraging strengths to minimise the threats.
• Overcoming weaknesses to minimise the threats.

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How to conduct SWOT analysis?


SWOT analysis is a subjective approach, and there is no standardised
way to conduct the analysis. Usually, the SWOT analysis involves three
steps as given below:

• Step one involves gathering the right people to take the input from
them. The right people may involve from employees, managers,
customers and other important stakeholders that have detailed
know how of organisation's internal and/or external environment.
• Step two includes arranging the brainstorming session with the
identified people and asking them to identify the strengths,
weaknesses, opportunities and threats. It is better to make small
teams and ask all team members to make the lists individually.
• After getting the bulk of information and a long list of identified
internal and external factors, it is important to fill the gaps, avoid
repetition and provide an additional explanation where required.

SWOT Analysis of The Vanca


Reworking Digital Marketing

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Strategy
SWOT analysis of The Vanca Reworking Digital Marketing Strategy can
be based to make important strategic decisions and accomplish the
business objectives. The four components of The Vanca Reworking
Digital Marketing Strategy SWOT analysis are given below.

Strengths of The Vanca Reworking


Digital Marketing Strategy
Strengths of The Vanca Reworking Digital Marketing Strategy is the first
element of the SWOT matrix.

• The geographic presence in different regions can act as one of


the major strength of the organisation. It determines the
business’s reach to the target market and ensures the easy
accessibility.
• The wide product portfolio can allow the organisation to expand
the customer base and offset the losses from one product
category with benefits obtained from the other.
• Strong online presence on different social networking sites and
efficient social media management can enhance the effect of
positive e-WOM and develop strong relationships with customers.
• Strong financial position and health can allow the firm to make
further investments.
• Access to the suppliers that offer raw material at a lower cost can
improve the overall business efficiency.
• The locational advantage can improve the competitive positioning
of the firm in various ways, such as- lower cost, improved
accessibility or enhanced brand image.
• The well-developed and efficiently integrated IT infrastructure can
improve the operational efficiency and increase knowledge of the
latest market trends.
• Competent and committed human capital can act as a powerful
source of competitive advantage, particularly when business is

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service oriented in nature.


• High product quality increases brand loyalty and improves The
Vanca Reworking Digital Marketing Strategy's performance in a
competitive market.
• Workplace diversity can also act as a major business strength,
particularly when the organisation intends to operate in the
international market.
• The horizontal and/or vertical integration can increase the control
over whole value chain, result in improved access to raw material
and quick product delivery to the final customer.
• An organisation may own different intellectual property rights that
can make the product offerings unique and exclusive, making it
difficult for competitors to imitate.

Weaknesses of The Vanca


Reworking Digital Marketing
Strategy
Weaknesses of The Vanca Reworking Digital Marketing Strategy is the
second element of the SWOT matrix.

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• The organisation can draw the criticism from the environmentalists


for its poor waste management practices and inability to integrate
sustainability in business operations.
• The company may lose efficiency due to poor inventory
management practices. The shortage or excessive inventory can
either result into
• The cash shortage or insufficient current assets negatively affect
the liquidity position and harms the overall business performance.
• Insufficient budget for the marketing and promotion activities
weakens the firms’ ability to expand the customer base and
encourage repeat purchase.
• Less expenditure on the research and development activities can
weaken the company performance due to poor local/international
market knowledge.
• The inability to understand customers’ needs and expectations
lead to an ineffective strategic decision-making process. With this
weakness, the organisation may not be able to identify the
potential improvement seeking areas in product/service mix.
• The prices charged by the business may not be perceived as
justified when compared to the product/service characteristics. It
indicates the need to revise the pricing strategy.
• The poor customer service (such as inefficient customer complaint
handling) can trigger the negative word of mouth about the
business and affect business growth.
• The decision making in the The Vanca Reworking Digital
Marketing Strategy takes too much time, causing expensive
delays in introducing new products in the market.
• Poor project management practices can internally weaken the
ability of the organisation to successfully open new branches or
expand the product line.
• Lack of organisational commitment and high employee turnover
can increase recruitment costs and reduce organisational
productivity.
• High job stress and consequent low workers’ morale makes the

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workforce less productive.


• The misalignment between the organisation's leadership style and
its core strategic objectives can make the business organisation
directionless.
• Organisational culture also becomes a big internal weakness
when it does not align with the strategic/business objectives. For
example, the main strategic objective of the chosen business
organisation is to launch innovative and new products in the
market. But there exists a risk averse attitude prevailing in
organisational culture, which discourages employees from
thinking creatively.

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Opportunities of The Vanca


Reworking Digital Marketing
Strategy
Opportunities of The Vanca Reworking Digital Marketing Strategy
comes into the third column of SWOT matrix. The Vanca Reworking
Digital Marketing Strategy. The organisation currently has the following
opportunities available in the market:

• The exponential growth in the population, and particularly in the


existing or potential customer segments is a great growth
opportunity for the business organisation.
• The changing customer needs, tastes and preferences can act as
an opportunity if the business organisation has good market
knowledge.
• The development of new technologies to assist the

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product/service production and delivery process can be exploited


to embed the innovation in business operations. The advanced
technological integration can decrease costs, improve efficiency
and result in the quick introduction of innovative products.
• Rise in the customers’ disposable income and increase in the
affluent customer base can be taken as an opportunity to
introduce more high-end products.
• Reduction in the interest rates makes the fund raising and
financing at lower cost easier for the business organisation.
• Customers may start preferring new and creative
products/services as a result of changing tastes.
• The emergence of e-commerce and social media marketing as a
trend can be a great opportunity for The Vanca Reworking Digital
Marketing Strategy if it can ensure strong online presence on
different social networking sites.
• The emergence of new market segments and new niches provide
business and product line expansion opportunities.
• The diminishing boundaries and rising global interconnectedness
allow the organisation to get into the international market; target
geographically dispersed customer base and increased
profitability.
• The subsidies provided by the government and other policies to
make the business environment more friendly is a positive
external environmental factor for The Vanca Reworking Digital
Marketing Strategy.
• Improvement in the customers- lifestyle and standards mean more
consumption on consumer goods and services, and more
opportunities to encourage the purchase.

The Vanca Reworking Digital Marketing Strategy can improve its


performance by exploiting the above-mentioned opportunities. However,
it must also recognise the threats presented in the next section.

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Threats of The Vanca Reworking


Digital Marketing Strategy
Threats of The Vanca Reworking Digital Marketing Strategy comes into
the fourth column of the SWOT matrix. The Vanca Reworking Digital
Marketing Strategy. Besides different opportunities offered by external
business environment, the organisation also faces some threats as
presented below:

• The changing regulatory framework and introduction of new


stricter regulations impose a major threat to the The Vanca
Reworking Digital Marketing Strategy. It makes compliance with
legal standards more complex and challenging for the business
organisation. Inability to comply with changed regulations raises
the risk of expensive law suits.
• Shortage of skilled labour in the market can make it difficult for the
organisation to attract talent with the right skills set.
• The increasing number of direct and/or indirect competitors affects
the organisation's ability to sustain and expand the customer
base.
• The deteriorating economic conditions affect business
performance when they directly influence the customers' spending

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patterns and purchasing power.


• The rise in inflation increases the cost of production and affects
the business profitability.
• The growing environmental sustainability trends act as a major
threat when offered products/services are not environment
friendly. It draws the negative publicity and criticism from the
environmentalists and affects the brand image in a competitive
market.
• The globalisation pushes the organisation to cross national
boundaries and deal with cultural diversity, which may have a
detrimental impact if the organisation lacks the cultural
intelligence.

The The Vanca Reworking Digital Marketing Strategy SWOT Analysis


requires The Vanca Reworking Digital Marketing Strategy to
differentiate between threats having short-term or long-term
implications. Threats with immediate implications need to be addressed
on a priority basis to avoid any possible harm. While threats with long-
term implications can be tackled after addressing the immediate
threatening factors.

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Advantages and Limitations of


SWOT analysis for The Vanca
Reworking Digital Marketing
Strategy
The detailed SWOT analysis can help the The Vanca Reworking Digital
Marketing Strategy to exploit the opportunities by leveraging internal
strengths quicker than competitors. SWOT analysis offers various
advantages to the The Vanca Reworking Digital Marketing Strategy as
explained below:

• It can provide useful information for developing wise business


strategies.
• It enables the The Vanca Reworking Digital Marketing Strategy to
maximise its strengths, overcome the weaknesses, reduce threats
and exploit opportunities.
• The Vanca Reworking Digital Marketing Strategy can identify the
core competencies, do market projections and do future planning.

However, SWOT analysis of The Vanca Reworking Digital Marketing


Strategy has certain limitations that the company must consider to
achieve its strategic objectives.

• Sometimes, it is difficult to recognise the difference between


opportunities and threats as the same opportunity can act as a
major threat if the firm is unable to exploit it in a timely manner.
• It oversimplifies the process of identifying strengths, weaknesses,
opportunities and threats. The identified factors are not ranked
according to their importance and urgency, due to which SWOT
provides only limited information.
• The complex interdependency between the internal
(strengths/weaknesses) and external (opportunities/threats)
environmental factors make the analysis more difficult.
• SWOT analysis does not consider the dynamic nature of a quickly
changing environment.

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• The SWOT analysis does not offer solutions or provide alternative


strategies.
• The identification of strengths, weaknesses, opportunities and
threats generates a bulk of information which may only be useful
to a limited extent.

The above-mentioned Limitations of SWOT Analysis for The Vanca


Reworking Digital Marketing Strategy indicate the need to adopt a
holistic view. Recognising and understanding these limitations can
further improve the strategic decision-making process.

Weighted SWOT analysis


• Weighted approach to The Vanca Reworking Digital Marketing
Strategy SWOT Analysis is used to assign weights after
identifying strengths, weaknesses, opportunities and threats.
• The decision-making based on weighted SWOT analysis can
strengthen the Strategic competitiveness of The Vanca Reworking
Digital Marketing Strategy and lead towards more informative
strategic analysis.
• The weights are assigned by considering the probability of

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occurrence, intensity and impact on the environment.


• The weight assigning allows The Vanca Reworking Digital
Marketing Strategy to determine which areas need to be focused,
which areas can be avoided for short-term and which areas can
be avoided for long-term due to low importance

Although, weighted SWOT analysis is a better approach than the


traditional, un-weighted SWOT analysis. However, weighted SWOT
analysis is also not without limitations. For example, this approach does
not offer a broader overview of how internal and external environmental
factors collectively influence the business in the short and long-run.

Advanced SWOT analysis


The Vanca Reworking Digital Marketing Strategy SWOT Analysis can
be further enhanced by adopting the advanced SWOT analysis
technique. The application of advanced SWOT analysis can enhance
the Strategic competitiveness of The Vanca Reworking Digital
Marketing Strategy by providing more useful and detailed information.
To do this, The Vanca Reworking Digital Marketing Strategy combines
the strengths-opportunities, weaknesses-opportunities, strengths-

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threats, weaknesses-threats.

• Using strengths to exploit opportunities- SO.


• Reducing weaknesses to exploit opportunities- WO.
• Using strengths to reduce the threats- ST.
• Reducing weaknesses to reduce threats- WT.

The table given below provides some examples of each combination:

Strengths-Opportunities Weaknesses-Opportunities

(S1, O7) (W10, O7).


The geographic presence of The Project management practices
Vanca Reworking Digital can be improved to exploit the
Marketing Strategy in different opportunities offered by
regions can help the emerging market segments. It
organisation to get into the will allow the organisation to
international market and target successfully handle new
the geographically dispersed product development projects
customer base (S1, O7). (W10, O7).

(S3, O6). (W12, O6).


Strong online presence on The Vanca Reworking Digital
different social networking sites Marketing Strategy can reduce
of The Vanca Reworking Digital the job stress and increase
Marketing Strategy can allow the workers’ morale to launch new
organisation to exploit and creative products by
opportunities offered by growing exploiting creative thinking
e-commerce trend (S3, O6). capabilities of its workforce
(W12, O6).

(S7, O3). (W8, O6).


The well-developed and The Vanca Reworking Digital
efficiently integrated IT Marketing Strategy can improve
infrastructure of The Vanca the customer service to
Reworking Digital Marketing generate the positive word of
Strategy allow it to take mouth on different social
advantage of emerging networking sites (W8, O6).
innovative technologies (S7,

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Strengths-Opportunities Weaknesses-Opportunities

O3).

Strengths-Threats Weaknesses-Threats

(S5, T4). (W5, T3).


The Vanca Reworking Digital An organisation may increase
Marketing Strategy's access to the expenditure on the research
the suppliers that offer raw and development activities to
material at a lower cost can help cope the competitive pressure
it overcome the threat imposed due to the rising number of
by rising inflation (S5, T4). indirect and direct competitors
(W5, T3).

(S8, T2). (W1, T6).


Competent and committed The organisation can improve
human capital of The Vanca waste management practices
Reworking Digital Marketing and integrate sustainability in
Strategy can overcome the business operations. It will help
labour shortage problem in the the organisation to effectively
market (S8, T2). handle environmental pressure
(W1, T6).

(S10, T7). (W7, T4).


Workplace diversity can help an The pricing strategy can be
organisation to take the resettled and realigned to
globalisation as an opportunity maximise the value for money
instead of threat due to high and overcome challenges
cross-cultural intelligence (S10, imposed by deteriorating
T7). economic conditions (W7, T4).

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References
Fernandez, J. (2009). A SWOT analysis for social media in
libraries. Online, 33(5), 35.

Friesner, T. (2011). History of SWOT analysis. Marketing


Teacher, 2000-2010.

Ghazinoory, S., Abdi, M., & Azadegan-Mehr, M. (2011). SWOT


methodology: a state-of-the-art review for the past, a framework
for the future. Journal of business economics and management,
12(1), 24-48.

Ghazinoory, S., Esmail Zadeh, A., & Memariani, A. (2007). Fuzzy


SWOT analysis. Journal of Intelligent & Fuzzy Systems, 18(1),
99-108.

Helms, M. M., & Nixon, J. (2010). Exploring SWOT analysis–


where are we now? A review of academic research from the last
decade. Journal of strategy and management, 3(3), 215-251.

Hill, T., & Westbrook, R. (1997). SWOT analysis: it's time for a
product recall. Long range planning, 30(1), 46-52.

Jackson, S. E., Joshi, A., & Erhardt, N. L. (2003). Recent


research on team and organizational diversity: SWOT analysis
and implications. Journal of management, 29(6), 801-830.

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Pickton, D. W., & Wright, S. (1998). What's swot in strategic


analysis? Strategic Change, 7(2), 101-109.

Ravanavar, G. M., & Charantimath, P. M. (2012). Strategic


formulation using tows matrix–A Case Study. International
Journal of Research and Development, 1(1), 87-90.

Sarsby, A. (2016). SWOT Analysis. Lulu. com.

Shahir, H. Y., Daneshpajouh, S., & Ramsin, R. (2008, August).


Improvement strategies for agile processes: a SWOT analysis
approach. In Software Engineering Research, Management and
Applications, 2008. SERA'08. Sixth International Conference on
(pp. 221-228). IEEE.

Valentin, E. K. (2001). SWOT analysis from a resource-based


view. Journal of marketing theory and practice, 9(2), 54-69.

Warning! This article is only an example and cannot be used for


research or reference purposes. If you need help with something
similar, please submit your details here.

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