Strategic Plan, Part II: SWOTT Analysis
Strategic Plan, Part II: SWOTT Analysis
SWOTT examination is a crucial systematic device used for evaluating the elements both external as well as internal, which have an influence over the company. In existing business conditions firms use SWOTT to assess their market standing regarding share of the market, competitive edge as well as complete feasibility. SWOTT examination offers a company with upgraded information about its achieved and achievable weaknesses and strengths, possible opportunities, dangers as well as risks and business trends. The main elements of SWOTT examination can be split under the heads of external as well as internal elements.
This document describes an in depth evaluation of elements external as well as internal, which can have an effect on the business of Ace Gym. Because of this evaluation administration of Ace Gym can evaluate the main elements, which can influence the feasibility, establishing competitive advantage as well as stakeholders’ satisfaction for the company.
External Environmental Analysis
Several outer elements may have an influence over Ace Gym’s ability to accomplish its objectives as well as goals. To be successful, Ace Gym will need to discover an appropriate strategy, which can maintain the business anticipations and also to keep Ace Gym’s expectation with the provisions exterior environment can provide. The exterior factors incorporate: legal as well as regulating elements, economic elements, technological elements, innovation elements, and socio-cultural elements.
Legal and Regulatory factors
This element has the complete capability to help with company’s strategic goal. Rules specifically involving information technology would provide increased safety to the organization by ceasing the unauthorized access. The evaluation of this exterior element must be comprehensive as well as exact by the business because IT standards and rules usually are stringent and inadaptable. Ace Gym will have a big business possibility from clients who are worried for the reliable transactions through Internet. Company must also evaluate the normal modifications in rules because they can be dangerous as well as risky for the company in the long run.
The expansion as well as progress of Ace Gym’s business will also receive influence with the economic condition of the physical fitness and health sector. The prosperity of company is relying on the large expansion in physical fitness and health industries all over the world. Ace Gym will need to take into account that at present world economy is experiencing a downfall, market variability as well as downturn. The administration of the company can set strategies after watching the economic trend as well as economic tendency for the future.
Technology industry is expanding profoundly and Ace Gym can have help from it by giving its clients with customized services. For example with introduction of bio-sensors the gym can offer its clients with tailor made services of life as well as correct figures through this service. However, Ace Gym will have to evaluate as well as examine the full effect of this element on the company as any mistake is liable to be dangerous for the company. The growth of technologies both regarding hardware as well as software carry chance for the company and keeping the factor in view company can come up with appropriate strategies.
Innovation is the strength character of the company is depending on technological invention as well as appropriate economic situations of the industry. The solid point for Ace Gym is to organize revolutionary technology, suitable market research as well as personnel abilities. For the efficient utilization of the latest technology, individuals should be provided training for new trends and advances. In case not implemented timely the latest transforming technology and continual invention can be risky for the company.
The exterior element, socio-culture of targeted audience also impacts the company. With changing conditions, individuals are getting more conscious of health and fitness with desires of looking great, yet on the other hand have less time to fulfill this desire. They require a remedy that is quick as well as easy. Ace Gym caters to this requirement of consumers by giving them through personalized as well as specialized health guidelines around the world. The same health model is not good for everyone therefore it should not be used everywhere and Gym will need to take into account social as well as cultural aspects
Internal Environmental Analysis
To get better understanding of the inner elements, a comprehensive analysis is required of company’s design, key skills, systems process as well as strategies.
IT as well as innovation inspired company desires to have an organizational design that is well delineated and divisions do not have ambiguity concerning their tasks and duty. For an IT-driven company the strong point is in low level of bureaucracy, plainly explained duties as well as group specialization. This element lets in creating a procedure which supports effective working of company. Ineffective organizational shape will lead to bad organizational efficiency as well as worker growth. In accordance to existing business surroundings, Matrix organizational design is best suited for Ace Gym. It will assist in decreasing operational expenses, save time, versatility as well as in fastidious decision making.
Core competency of Ace is related with facilitation of quick, specific as well as tailor-made fitness services utilizing IT and also less expensive for the targeted customers. As businesses are transforming greatly with differing market conditions Ace Gym will continuously have upgrade its core competencies to have competitive edge over the competitors. This can be assisted through regular research carried out from the customers.
The good point for Ace Gym is in managing the IT technology with fitness services in a manner that it will create higher profits through costs reductions as well as save time. To accomplish this task the company will need less expensive and modern processes, skilled staff, and well qualified health and fitness experts. Ace Gym can use its procedures as it benefit through revolutionary technology and inner sources and modifying it appropriately to match business and environment tendencies. The company also requires to introduce training and development programs for the workers so they can improve their IT tools associated understanding and also the techniques of its used in the company.
Innovation strategy is chiefly pursued by the company to decrease expenses as well as save time and establish a new online concept of health consultancy service. The company’s objective, perception, and value statements have a direct influence over the corporate and business strategies of the Gym. The key program of objective as well as perception of the organization is supplying VAS (value added services) to its customers at a fair price as well as motivate its workers to maximum use the achievable possibilities to leverage expansion of the company. The strategy will be productive for the company when the individual targets of workers are in line along with the general company objectives. These kinds of strategies can be assembled by effective resource use, efficient marketing, accessibility to research, and development as well as adequate funds. The weak spot concerning this strategy will be higher expense of performance of these types of strategies. The achievable as well as obtainable business opportunities can be best utilized by growing into new areas and giving company a lasting competitive edge over the competitors. Organization will need to take into account the points such as funds, employee improvement, marketing as well as client interaction or otherwise the strategy established will be useless. Useful formulation as well as performance of plans would lead towards long lasting expansion business expansion of the organization.
For a good company it is necessary to evaluate both its exterior as well as interior elements. All the areas of the company which are contributing towards organic or inorganic development of the company must be taken into account. It is necessary for the firms to appreciate that all these points are interconnected and can’t be evaluated on individual basis. For example the exterior regulations and rules influence the interior organizational design as well as strategies. The assessments must be made from holistic point of view to get better outcomes as well as advantages. Additionally the significance of continuous evaluation of points must be understood since it helps to stay ready for suggested or sudden alternation in surroundings.
SWOTT ANALYSIS TABLE
|Economic||Small sum of starting money is required; fewer funds are needed for executing daily functions.||Unreliable expansion of Online business; Influence of international economic depression.||Excellent opportunity of developing a brand name and thus higher economic development by supplying values to customers.||Present international economic slowdown.||Higher expansion of Internet dependent market.|
|Legal & Regulatory||Rules as well as laws will assist in improving company’s strategic plans.||Lenient rules as well as regulations; client does not have trust when doing online deal or posting personal information on internet.||Clients are more conscious of Internet related rules that will increase their trust and thus increasing company’s earnings.||No fix/reliable rules for internet scams; deficiency of global laws.||Internet rules will become rigid in the coming future.|
|Technological Analysis||Quick as well as dependable expansion of company; technological empowerment of clients.||Technology is vulnerable to high value mistakes.||Rapid development in IT technology, both hardware as well as software will provide huge possibilities of value improvement.||Higher rivalry from existing and fresh entrants.||Consumers are searching for a lot more personalized and customized services.|
|Innovative||Collaborating innovation technology with professional health and fitness consultancy.||Shortage of advancement will hinder business expansion and eventually results in loss of market benefit.||Clients are enticed towards revolutionary, simple to use, and less expensive revolutionary technologies.||Brief life cycle of invention can result in potential loss in share of the market.||Utilization of invention is in development phase.|
|Strategy||Efficient formulation & execution of plan is designed as the base for the company accomplishment.||It needs massive capital investment.||Big modifications to get competitive advantage via beneficial strategy.||Danger of failing is higher, in case it doesn’t examine all aspects of the company such as financial, human, growth, IT, and so on.||Effective formulation & execution plan contributes in competitive position, share of the market & development.|
|Structure||A well developed design will boost performance, each division and every worker will know specifically what is expected from them. It will also contribute to swift decision making.||Ineffective design can result in decline in expansion and developmental risks.||Business will be able to watching its organization as well as operational services.||In case important processes are ignored in that case it can lead to loss of business.||Increasing tendency for Matrix organizational structure in IT business atmosphere.|
|Systems/ Processes||Successful and financially lasting processes can result in business expansion.||Higher money requirement and regular requirement of training.||Excellent chance for increasing company’s business and upgrading operational procedures.||Prospective opposition from workers.||Specific methods are on progress.|
|Core Competencies||Rapid and responsive specialized services that are cost effective for clients.||Huge competitive expansion from both small as well as big participants can result in swift loss of competitive advantage.||Skills can be created and updated regularly.||In case the rival can nullify competitive advantage.||Market is expanding for organizations having a special competitive advantage.|