One of managements trustiest in additionls is the SWOT analysis. You take a calm, cool it look at the organisations Strengths, Weaknesses, Opportunities and Threats. Then you seek to capitalise on the Strengths, Eliminate the Weaknesses, seize the best Opportunities and counter the Threats. Could the first-class success of Microsoft, with its 90% gross margin and $9 gazillion of cash, really be threatened? In a brainy study in Worldlink magazine, Howard Anderson has shown that the answer is Yes - a dozen multiplication over. Although the threats are specific to the software industry, they are also generic. chastise them on your own firm: 1. Could newcomers (including breakaways from your own company) create prejudicial competition? 2. Is there an equally powerful force in the market which could muscle into your territory? 3. Is there a competition technology or other differentiator which could come come in on top? 4. Are you weak compared to the competition in a key market segment? 5. Is the market maturation in ways that favour take exceptionrs more than you? 6. Could your customers takes major sources of gross away? 7. Is there a major area in the market where you lag rather than lead? 8. Does a competitor have a stronger hold on your biggest customers? 9. Is there a growing market where you are being left laughingstock?
10. Are there environmental/regulatory threats? 11. Could unsuspected challenge arrive from outside the existing industry? 12. Is your market too broad for all threats to be safely covered? AN daunting LIST The thirteenth question, of course, is whether, if any of the dozen apply to your business, you are doing anything trenchant to counter the Threat or, better still, to convert Threat into genuine Opportunity. Its an intimidating list, even for mighty Microsoft, especially when you see the names of its leading enemies: Sun Microsystems, the big banks, Cisco, Compaq, Netscape, Oracle, SAP and IBM. The latter teras provides Anderson with his starting point.... If you want to get a full essay, pose it on our website:
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