SWOT ANALYSIS

INTRODUCTION:

A SWOT analysis is a tool used in planning to assess the strengths, weaknesses,

opportunities and threats associated with a business or project. It provides an
overview of both external factors that can have either positive or negative
impacts, on an organization, product or initiative. By identifying these factors
businesses can develop strategies to leverage their strengths and opportunities
while addressing any weaknesses and threats they may face.
The acronym "SWOT" stands for;

 Strengths:
These are factors that give an organization an edge over others. They could
include elements such as a brand reputation, skilled workforce, cutting edge
technology or unique product offerings.

 Weaknesses:
These are factors that put the organization at a disadvantage compared to
others. They might involve areas such as resources, inadequate
infrastructure, inexperienced staff members or outdated product lines.

 Opportunities:
These are factors that have the potential to benefit the organization. They
could arise from market trends, advancements in technology changes in
consumer behavior or emerging untapped markets.
  Threats:
These are factors that may pose challenges for the organization. They could
include aspects like increasing competition shifts in environments, economic
downturns or changes, in consumer preferences.

Applications of SWOT analysis:

SWOT analysis is implemented in any situation related to decision making when
the desired objective is defined. It can also be used in preventive management of
the crisis or the planning of any pre-crisis circumstances. SWOT is also applied in
the creation of a recommendation during a survey or viability study. Now let us
see in detail the areas of the application of SWOT analysis.

During Strategy Planning

SWOT is often used to plan individual or organization strategies. This involves the
identification of external and internal factors by employing the 2X2 matrix,
evaluation and selection of the most feasible factors, and identification of the
relation between the external and internal features of that factor.

Corporate Planning
As a part of the development, plans and strategies are vital to achieving the
objectives of an organization. Thus an enterprise implements a rigorous and
systematic process known as corporate planning. SWOT analysis forms the
foundation of the analysis of environmental and business factors. The role of
SWOT analysis in corporate planning is:
 Setting the required objectives about what the organization is going to do
 Scanning of the environmental factors
 Complete analysis of the existing strategies
 Strategic Issues are defined
 Development of revised or new strategies
  Preparation and implementation of operational, project and resource
plans
 Minute monitoring of every strategy and their results
 Establishment of the critical factors for the success

Matching and Converting

Another way to use SWOT analysis is through matching and converting. Matching
is utilized to find out the competitive benefit by matching the potency of the
opportunities. Weaknesses or threats can also be converted to opportunities and
strengths.

Marketing
During competitor analysis, SWOT analyst creates detailed profiles of every
competitor of the organization, by comparing the weaknesses and strengths.
Cost structure, resources and competencies, source of profits, differentiation of
the products, vertical integration degree, and competitors positioning were
examined by the marketing managers. Some of the most common techniques to
conduct surrounding market research through SWOT analysis are:
 Focus groups (Qualitative marketing research)
 Statistical surveys (Quantitative marketing)
 Test markets as experimental techniques
 Ethnographic or onsite observation as observational techniques
SWOT analysis is a simple and useful framework for analysing the Strength,
weaknesses, opportunities, and threats of an enterprise. It helps them to build a
strategy on what they do the best and to address what they are lacking to reduce
the risks in the future. Through SWOT analysis the organizations take full benefit
of the chances for success. SWOT analysis is employed to start a strategy
formulation, understanding the nature of the competitors, and insight into a
coherent competitive position.
 STRENGTHS
PAGANI
 Business has a substantial
geographical reach, consumer
base and maintains a strong
brand identity.
 Business's focus on
continuousproduct
development, making it
possible for the business to
maintaininga strong market
position and to improve its
customer fulfillment.
 The company had actually been
quite effective in attaining
parent's choice and was
extremely trusted due to its
service design of offering safe
education and discovering
environment to kids by
teaming up with schools,
market networks and
instructors.
 Pagani Automobili Spa
Motoring Becomes Electric
case analysis parks are highly
chosen by children, as it uses
200 plus activities, 90 various
trades and professionals to be
performed by each kid and
other benefits, such as: loyalty
programs.
JAGUAR
 Jaguar is one of the luxury car
manufacturers in the world.
Jaguar has always tried to stay
away from controversies.
 Jaguar has a well trained and
motivated workforce.
Performance is the prime
importance of Jaguar. The
workforce of Jaguar is trying to
supply its customers with high-
performance ultra-luxury and
stunning vehicles. Jaguar is
spending more on providing
the training and development
of employees.
 Jaguar Cars belong to the
exclusive cars segment. Jaguar
has a very good brand image.
Jaguar is giving tough
competition to new brands in
the luxury segment.
 The company is taking
advantage of online marketing
and marketing its products
through Google Ads, Instagram,
Facebook, and other social
media and online platforms.
Thus we can say that the
advertising & marketing plan of
the company is good.
 WEAKNESSES
PAGANI
 The business has experienced
lack of monetary and technical
resources, which has restricted
its capability to grow its
company domestically and
globally.
 Pagani Automobili Spa
Motoring Becomes Electric
case solution is facing
increasing devaluation of
Mexican Peso, which has
actually resulted in declining of
the monetary performance.
 Business has absence of
experience and knowledge of
operating in theme and
amusement park in industry,
which has limited its
diversification in the extremely
demanded and rewarding
theme park market.
JAGUAR
 Jaguar has a good range of
cars. But as compared to the
competitor’s Jaguar has less
range of cars and in order to
attract prospective buyers,
they need to expand their
number of products and add
new versions.
 Jaguar is a top-selling brand in
the United Kingdom and in
other major markets, it is not a
top-selling brand. In the
Japanese and German markets,
they are not so common. While
their success is on the rise in
the Indian and Chinese markets
but still a lot needs to be
achieved.
 Car Pricing is very high as
compared to SUV and other
luxury cars.
 OPPORTUNITIES
PAGANI JAGUAR
 The business can obtain the
opportunity of increasing
demand of theme parks in U.S.
by going into the U.S.
entertainment industry.
 Considering the high internet
penetration in Mexico, the
business can make the most of
this chance by developing an
interactive digital platform for
marketing its business and
attracting maximum
consumers.
 Jaguar can target developing
markets such as India and
China to take advantage of
consumer’s untapped capacity.
Jaguar needs to improve their
profits in these regions and set
up new manufacturing facilities
in India and China as well.
 To reach a new client base,
Jaguar will look at new
acquisitions. In order to expand
the client base and to make
better revenue and profits,
they need to sell down.
 Due to the rise in people’s
disposable earnings, they
spend more on luxuries. For
Jaguar, it’s a nice time to boost
their revenue and make more
money.
 The new future is hybrid
technology. A lot of car
manufacturers have begun to
concentrate on this area, and
Jaguar can start manufacturing
hybrid cars.
 Jaguar has to reduce the
emission of CO2 and other
particulates for environmental
protection. Jaguar must adopt
policies for emission norms.
 THREATS
PAGANI
 Pagani Automobili Spa
Motoring Becomes Electric
faces serious competition from
domestic and global rivals
along with rapidly altering
trends of show business and
client preferences. This might
result in service losing its
identity as a strong brand and
key player
 The business suffers from an
increased danger of duplication
of its service design by various
competitors. Business model is
the core strength of the
business and the primary factor
of company's success.
 The increasing decline of
Mexican Peso against the U.S.
dollars might decline business's
monetary stability.
JAGUAR
 Car manufacturers like Bently,
Porsche, Mercedes, Aston
Martin, Audi, are giving tough
competition to Jaguar. All of
them are well-settled players in
the same target demographic.
 The planet is now focussing on
more fuel friendly technologies
and the government is working
on changing environmental
policies for the same. If they do
not reconcile themselves with
this notion, this could be a
challenge to the future of the
business.
 Financial instability, such as
recession or depression,
contributes to reduced
consumption by individuals.
Next, they cut down on
luxuries. This will strike the
brand’s sales very hard. They
still rely on international
revenue as well so any
fluctuations triggered by any
country’s currency volatility
directly influence the
company’s revenues.
 Expensive raw materials will
have a significant effect on the
company’s cost of production.
 Government policies and
regulations regarding spare
part prices and fuel prices can
directly or indirectly effect the
manufacturing of Luxury cars.