The SWOT analysis is among the best and useful tools used in decision making and strategic planning for all the activities of a firm.
It defines the Strengths, Weaknesses, Opportunities and Threats facing a firm. The strategic planning process focuses on analyzing the internal and external environment of the organization. The steps of SWOT are implemented in the strategic planning and evaluation of a business venture. On one hand, the strengths and weakness are viewed to be internal to the business while on the other, opportunities and threats are considered as external to the firm. Analyzing a business involves identifying its goals and determining both the internal and external factors that are favorable to its success. Another exemplary tool is the Boston Consulting Group Matrix. This method offers a clear tool for the evaluation of a company's position in terms of its range of products. The method enables businesses to make decisions regarding their products. A detailed analysis offered by this method enables the company to determine what to venture in and what it should discard.
This matrix method provides a useful way of determining and seizing the opportunities available to a business.
The company is able to determine where to invest to maximize future profits. This approach enables firms to prioritize on certain products by applying strategic measures. These measures are the market share and the market growth. To apply and enjoy the full benefits of this method, one has to understand how the two are related. The market share covers the total market that the firm serves; it is measured via the amount of revenue or the total number of unit volume. The higher the market share, the higher the market proportion controlled by the firm and vice versa. The market growth entails the number of potential customers in the market. It is used as a measure of how attractive the market is to the business. Growing markets enable a business to increase their profits. However, this is affected by the rate of competition which is inversely proportional to the growth of markets.
The growth, development and stability of the Paris Gallery in Qatar rely heavily on the understanding and application of the above strategies. The Boston Consulting Group Box should be utilized to categorize the products of the organization in terms of their relative success or failure within the market. Identifying the stronghold of the company is crucial to the success of the organization. The various products that the Gallery offers have different consumer acceptance. The use of revenue statistics is essential as it will enable the firm determine which of its product are on high demand. This can be further accompanied by market research that will enable the firm determine the taste and preference of the customer. The company therefore, tailors goods and services that are consumer oriented.
Suggestions and recommendations should be given about achieving an optimal product mix by taking various strategic actions such as, taking certain products out and promoting other products more aggressively. The suggestions to be incorporated should be fully researched and inclusive of the customer recommendations. The products can be categorized from different perspectives. Those that grow rapidly yet had a low market reception. As a result, they do not generate a lot of revenue for the firm. The company should consider critically examine such products before making a decision to invest. The next type of products have a low rate of growth and a low market share. As a result, the generated income is low that may lead to a dormant business. From the BCG model, the firm should consider maintaining stars. This is where there is high market growth and high and high market share.
When the firm determines its optimal production capacity, it should consider investing more in this sector to build and increase the market share. After this, it should now strive to maintain the status quo. At this stage, the firm starts harvesting and enjoying the benefits of its investment. The firm can also stop producing products that have low returns on investment. The capital invested in these sections can be used to expand the promising sectors of the company for continued present and future benefits. The firm may also use some marketing strategies such as advertising and promotion in order to penetrate the market and gain more customer acceptance and loyalty. Developing and controlling a market structure is a promising way of the firm to reach new avenues and customers and ensure that the profits are increased.
Evaluating the current situation of the firm and determining the vision of the firm in the future is another strategy that is essential to success in marketing.
The SWOT analysis provides a detailed and conclusive analysis of the changes that the firm may take to guarantee success. In the Gallery organization, one may consider using a SWOT analysis strategy under the following circumstances; when changing the method of distribution, seizing an opportunity to make an acquisition, outsourcing or changing a supplier or when considering making a potential partnership. The firm must strive to match and convert opportunities to its advantage.
Matching enables the firm to enjoy a competitive advantage while conversion is used to change the weakness and threats to strengths and opportunities. A popular strategy of conversion is to find new markets and seize the opportunity to gain control. Where the threats, risks and weaknesses cannot be converted to strengths and opportunities, the firm should strive to minimize them. If this is professionally done, the firm is kept afloat and able to compete competitively. Preparing a list of the strengths of the firm is essential. Some of the strengths that the company considers include; innovative products and services, business location, marketing expertise as well as quality procedures and processes. When the firm is ISO certified, it enjoys a good reputation to the public as the goodwill of the consumer is maintained. To enjoy a comparative advantage, the Paris Gallery in Qatar should consider being ISO certified to ensure that it wins and controls new market avenues.
In conclusion, it can be seen the best way to ensure the success of a firm is through clearly evaluating the strengths and weaknesses of the organization.
The success of the firm is, however, determined by how well the management of the firm is able to control the threats and seize the available opportunities. Determining when to take the relevant actions is essential as the success of the firm depends on the response time of the firm. The SWOT and BCG are the main marketing strategies that any firm eyeing success must consider implementing. The case of the Paris Gallery in Qatar analyzed in this essay aims at providing an example on how to apply the two marketing strategies.