SWOT is an analytical method used to determine the company's own competitive advantages (strength), competitive disadvantages (weakness), opportunities (opportunity) and threats (threat), so as to organically integrate the company's strategy with the company's internal resources and external environment. Therefore, clearly determine the company's resource advantages and shortcomings, understand the opportunities and challenges facing the company, for the development of the company's future development strategy has a vital significance.
The steps of SWOT analysis:
1. List the strengths and weaknesses of the company, possible opportunities and threats.
2. Strengths and weaknesses are combined with opportunities and threats to form SO, ST, WO and WT strategies.
3, the SO, ST, WO, WT strategy screening and selection, to determine the specific strategies and tactics that the enterprise should adopt at present.
SWOT Matrix:
Strengths Weaknesses
Opportunities so strategy (growth strategy) wo strategy (turnaround strategy)
Threats st strategy (diversification strategy) wt strategy (defensive strategy)
Competitive advantage(s) is a firm's ability to outperform its rivals, or something unique to the firm that can increase the firm's competitiveness. For example, when two firms are in the same market or they both have the ability to provide products and services to the same group of customers, if one of the firms has a higher rate of profitability or profit potential, then we consider that firm to have a competitive advantage over the other.
Competitive advantages can be in the following areas:
●Technical skill advantages: unique production technology, low-cost production methods, leading innovation ability, strong technical strength, perfect quality control system, rich marketing experience, superior customer service, excellent large-scale purchasing skills
●Tangible asset advantages: advanced production line, modern workshop and equipment, with a wealth of experience in mass purchasing
●Tangible asset advantages: advanced production lines, modern workshop and equipment, with a wealth of experience in mass purchasing
●Tangible asset advantages. Modern workshop and equipment, rich natural resources storage, attractive real estate location, sufficient capital, complete data and information
●Intangible assets advantage: excellent brand image, good business credit, positive company culture
●Human resources advantage: staff with expertise in key areas, motivated staff, strong organizational learning ability, rich experience
●Human resources advantage: staff with expertise in key areas, motivated staff, strong organizational learning ability
●Human resource advantage: excellent quality control system, rich marketing experience, superior customer service, excellent large-scale purchasing skills. rich experience
●Organizational system advantages: high-quality control system, perfect information management system, loyal customer base, strong financing ability
●Competitive ability advantages: short product development cycle, strong distributor network, good partnership with suppliers, sensitive response to changes in the market environment, market share leadership
Competitive disadvantages (W) is something that a company lacks or does poorly, or a condition that puts the company at a disadvantage.
Factors that can lead to internal disadvantage are:
● Lack of competitively significant skills and technology
● Lack of competitive tangible, intangible, human, and organizational assets
● Loss of competitiveness in key areas
Potential Opportunities (O) Facing the Firm:
Market opportunity is a significant factor influencing a company's strategy. Company managers should identify each opportunity, evaluate the growth and profitability prospects of each opportunity, and select the best opportunities that can be matched with the company's financial and organizational resources and that offer the greatest potential for competitive advantage to the company.
Potential growth opportunities may be:
● Trends toward expanding customer bases or product segments
● Shifts in skills and technology to new products and businesses serving a larger customer base
● Forward or backward consolidation
● Reduced barriers to entry in the marketplace
● Gaining the ability to acquire and merge with competitors
● Strong growth in market demand for rapid expansion
● Opportunities arise to expand into other geographic areas to increase market share
External Threats that Jeopardize the Firm (T):
In the firm's external environment, there are always certain factors that pose a threat to the firm's profitability and market position. Managers should promptly identify threats to the future interests of the company, evaluate them and take strategic action to offset or mitigate their impact.
External threats to the company may be:
●The emergence of powerful new competitors who will enter the market
●Substitutes taking over the company's sales
●Decrease in the market growth rate of the main product
●Unfavorable changes in the exchange rate and in the foreign trade policy
●Unfavorable changes in the characteristics of the population, in the society's way of consumption
● Increased bargaining power of customers or suppliers
● Decrease in market demand
● Vulnerability to recessions and business cycles
Because of the holistic nature of the business and the wide range of sources of competitive advantage, when doing a strengths and weaknesses analysis, it is important to compare the business in detail with its competitors in terms of each link of the entire value chain. For example, whether the product is novel, whether the manufacturing process is complex, whether the sales channel is smooth, whether the price is competitive, etc.
If a company's strengths in one or several areas are the key success factors that companies in the industry should have, then the company's overall competitive advantage may be stronger. It is important to note that the competitive advantage of a business and its products can only be measured from the point of view of existing potential users, not from the point of view of the business.
Enterprises in the process of maintaining competitive advantage, must be a deep understanding of their own resources and capabilities, to take appropriate measures. Because once an enterprise has a competitive advantage in a certain area, it is bound to attract the attention of competitors. Generally speaking, the enterprise after a period of effort, the establishment of a certain competitive advantage; and then in the maintenance of this competitive advantage of the posture, competitors began to respond gradually; and then, if the competitors directly attack the enterprise's strengths, or to take other more powerful strategy, it will make this advantage is weakened. Therefore, the enterprise should ensure the lasting competitive advantage of its resources.
The enduring competitive advantage of resources is affected by two factors: the competitive value of the enterprise's resources and the duration of the competitive advantage.
There are four tests that must be performed to evaluate the competitive value of a resource:
1. Is the resource easy to copy? The greater the cost and difficulty of imitating a resource, the greater its potential competitive value.
2. How long will this resource last? The longer the resource lasts, the greater its value.
3. Can the resource truly maintain superior value in competition? A resource should be able to create a competitive advantage for the company in the competition.
4. Will this resource be offset by other resources or capabilities of competitors?
There are three main factors that affect the duration of a firm's competitive advantage:
(1) How long does it take to establish this advantage?
(2) How great is the advantage that can be gained?
(3) How long will it take for competitors to respond forcefully?
If a company analyzes these three factors, it can clarify its position in establishing and maintaining a competitive advantage.
Of course, SWOT analysis is not just a list of four items. The most important thing is that by evaluating the company's strengths, weaknesses, opportunities, and threats, the company can finally come up with the following conclusions: (1) how to optimally utilize its own resources under the company's existing internal and external environments; and (2) how to build up the company's future resources.
Reference
Managing the problem
Some countries in the world have long been practicing the over-the-counter drug management system, and with China's economic development and health care reforms must be in line with it. Western developed countries from the 70's began to implement drug classification and management system, some prescription drugs into non-prescription drugs, to encourage individuals to bear some of the medical costs, such as some of the "minor injuries and illnesses," the use of non-prescription drugs.
According to the data survey, the world's people on the OTC and self-medication situation: ① 60% to 95% of the disease is initially some kind of self-care (or health care) forms of treatment. ② On average, 60% of the world's total population takes one medicine a day, of which 57% are self-medication. (3) In the U.S.A., the number of people who use OTC medicines when they have a disease problem is four times higher than those who go to the doctor for treatment, and 92% of consumers are satisfied with the efficacy of OTC medicines. (4) According to a survey in Korea in 1991, 63% of minor illnesses were treated after consulting pharmacies. (5) People who often go to hospitals also often go to pharmacies for minor ailments. (6) There is no difference in the trend of self-medication between the rich and the poor. (7) Overall use of OTC drugs: U.S.A. 33%, Australia 28%, Germany 28%, Spain 24%, U.K. 24%, Switzerland 22%, Mexico 21%, Italy 20%, Japan 16%. China's medical costs rise year by year, since 1978, the average annual growth rate of public medical expenses for 20.8 percent, more than the national economic development and fiscal revenue growth rate.
China's existing medical system, a single source of costs, coverage is narrow (can only guarantee less than 1/5 of the population), the degree of socialization is low, over-emphasis on welfare. After the implementation of the classification and management of countries around the world, not only to provide the public with safe, effective, reliable quality, easy to use non-prescription drugs, but also to reduce medical costs, rational use of limited health resources, change the public health care concepts, and promote the health care system
System has played a significant role.
Classification and management of over-the-counter medicines
I. Establishment of organizational structure
1 Establishment of the National Leading Group on Over-the-Counter Medicines and its office
2 Formulation of the scope of the above organization's duties, rules and regulations, file management and the corresponding work procedures.
Two, carry out research to learn from foreign experience
1 The management of international non-prescription drugs, market development and the development of non-prescription drug system with Chinese characteristics of in-depth discussions and exchanges.
2 Collect, organize and translate foreign OTC data and information. In order to promote the work of OTC as soon as possible and learn from foreign experience, the secretarial team obtained relevant data and information through various ways, and translated, organized and stored in the computer.
3 Participated in the relevant meetings in the Asia-Pacific region, and visited the United States, Canada, the European Union, etc., and held talks with the relevant national drug regulatory authorities to understand the management of over-the-counter medicines, and visited and inspected the pharmacies, hospitals, community pharmacies, over-the-counter drug manufacturers, research centers, etc. in these countries and regions.
4 Social research. In order to develop a system in line with China's national conditions, to provide policy support and social basis.
Three, a wide range of publicity and education
.