Tech and Management Tutorials Blog

SWOT analysis is a tool which is used in management identifying the strengths, weak points, opportunities and threats of a company. Strength and weak points of a company are the internal factors which include the resources, skills and assets like strong brand and reputation, quality processes and procedures or lack of marketing expertise, while threats and opportunities are external factors which are not under its control like developing market, removal of international trade barriers or price war. SWOT diagram is a wonderful tool which helps companies to analyze all these for the better understanding of their current picture and helps to improve it.

BCG matrix is the most popular portfolio management tool. It is used to determine the priorities in the product portfolio of a business unit. A company should have portfolio of products with high growth products and low growth products for a long term value creation. The BCG matrix involves market share and market growth. It has four segments like Stars with high growth and high market share, Cash cows with low growth and high market share, Dogs with low growth and low market share and Question Marks with high growth and low market share. It best helps you to understand the frequently made strategy mistake.

The value chain helps to analyze specific functions by which the firms can develop value and competitive benefits. The main activities include Inbound logistics like receiving, storing, inventory control etc, Operations like machining, assembly, packaging etc, Outbound logistics order completion, transporting, warehousing etc, Marketing and Sales which includes promotion, advertising, selling, pricing etc, Service like repair services, installation, customer support, training, upgrading etc. The support activities include Procurement, Firm infrastructure, Technology development and Human resource management. A company can create a cost advantage based on the value chain by lowering the cost of individual activities of value chain or by the value chain reconfiguration.