Good Essay About Environmental Scan
A Company's competitiveness is always based on some internal and external factors. These factors help managers to strategize, in order to develop strategies on how to compete effectively in the market. The factors are analyzed through a SWOT analysis, which is defined as a comprehensive internal and external analysis of gathering information that is value adding and of strategic focus to the company (Bohm, 2009).
Multinationals such as Dell and Methode electronics are such firms that depend on environmental analysis to help them achieve a strategic goal. Dell computers are known for great customization in terms of strength in the market as compared to others while a weakness is that the company tends to have weak relationships with other retailers. The company also has immense opportunities especially in emerging markets due to continued growth, especially in the tablet segment. While it foresees a brighter future, the company on the other hand experiences intense competition from rival firms and slow market growth mostly in markets it dominates.
The company's competitive advantage is its proximity to its market segments, together with its manufacturing plants. This enables it ship its products easily, at a lower cost while employing a direct model as a business strategy in feeding its markets, and at the same time minimizing its inventory, while improving customer service, and initiating personalized support services to its customers in remote locations.
The company focuses on responsiveness and value to its customers, as tools used to verify the strategic effectiveness of the company in various market segments in which it operates. These guidelines are effective since they enable the company measure how well their product is measuring against its competitors in the market.
Another company is method electronics. Methode electronics also competes fairly in the market due to a large pool of skilled labor in its disposal. This helps the company to achieve its corporate goals in unique design. On the other hand, the company records high revenue that translates to high-profit margins due to operational excellence in the markets in which it operates in. Despite the company's performance, it is expected that intense competition will reduce its profitability levels as more customers prefer newer models.
The company though has immense future potential due to venture capital and potential entry into other global markets. This presents a wider opportunity to harness more financial gains that will be attributed to the development of other potential markets, especially in the auto segment (Methode Electronics to Make Strong Gains As the Auto Market Raves Up, 2014). The company suffers threats from the rise in raw materials, risks associated with business and government regulations that tend to slow down expansion plans. Methode electronics implements customer analytics as a competitive strategy in order to understand its customers taste deeply. It creates value by implementing innovative energy appliances, and at the same time sustaining competitive advantage through enhancing the flow of its goods in order to reduce waste and to maximize capacity.
The company achieves its performance measurement by gathering information on how its investments have impacted on its customer specifications by means of value addition, which tends to be effective due to the ability to measure customer satisfaction and absorption rates of the products in the market.
Environmental analysis is important and can be used as a strategic tool for most businesses. This is important since it helps a business to understand the climate in order to achieve sustainability and competitiveness within a market.
Böhm, A. (2009). The SWOT Analysis. München: GRIN Verlag.
Zanoni, D. (2014, September 10). Methode Electronics To Make Strong Gains As The Auto Market Revs Up. Retrieved January 27, 2015, from http://seekingalpha.com/article/2484675-methode-electronics-to-make-strong-gains-as-the-auto-market-revs-up