Then benefits of the SWOT and PESTLE analyses
In order to, have the most successful business, firms conduct analyses. These analyses scan the environment for things that will make it easy and things that will make it hard for the firm. For instance, the SWOT analysis is used to measure internal and external variables that may affect a company, both good and bad. SWOT stands for strengths, weaknesses, opportunities and threats. Strengths might be its competitive advantage, maybe that is clients or suppliers, weaknesses could be bills, or the need for repair of a facility. Opportunities in the environment could be foreclosure of competitors or embargoes against importing technology from neighboring countries and such. Whereas holiday weekends provide the chance for sales for holidays. Threats could be entry of rivals into the market. By conducting these analyses, businesses become more aware of all the things that affect it. Without a vigorous analysis, a business cannot set goals for the future, let alone know where they stand. Let us conceptualize our brand and product with more analysis
PESTLE analyses are one of my favorite tools to use. They go into detail addressing the external environment. They are a simple to use tool for businesses to investigate the impact and effects to an organizations success. The PESTLE analysis discovers what trends are happening in the political, economic, social, technological, legal and environment. Trends refer to what is happening at the moment that makes the market good or bad for a business. For example, in the political arena it is smart to know how the parties in charge feel about the future of said market. Businesses that are in the technology field are in good hands because even the President can be used as an example of how technology (Sensors) fit into the political arena. They are apparently in favor. President Trump takes to twitter, the news and polls drafted on Facebook to find out what America thinks and what we vote for.
Economically it is good to know where the economy stands as we are in the recovery process from a great recession just ten years ago. Since then we see steady growth, low unemployment and little inflation. GDP is gradually rising and so are interest rates to a high level suggesting Americans have the money to purchase homes, cars, loans on college tuitions and so forth which only increase the GDP even more (Thebalance, 2018). In general, we should give a lot of credit to the technological market as over time America who once was diverse and not dependent on any one sector has evolved into a service and technologically-driven economy (Forbes.com, 2018).
Society is in favor of technology even with bad publicity stunts such as drone assassinations or self-parking cars that crash. Society craves advanced technology. Now is the time for research, development and stakeholder investment, pleads the President’s Council of Advisors on Science and technology (Nano.gov, 2018). With more public interest in micro technology, challenges can be addressed specifically through coordinated time, effort and investment. These challenges can be as complex as solving diseases and such. Technology is one of the fields that society wants to see evolve. With the latest smart technology, we have seen a rise in demand for sensors because they can fit in phones, watches, headphones, Bluetooth products like DVDs, computers, cars, at home and for work purposes. In this day and age, the availability of technology is made simple. By a click of a mouse, a customer can order anything they want. With the increasing availability, and difference in quality and price, the market is vast and good for business.
Legal matters are another area of concern that should be scanned. Samsung and apple faced some challenges in the late 2000s as their devices came equipped with biometrics such as voice, facial, and fingerprint recognition. Some of the sensors in these products allow oxygen in blood to be detected and UV radiation levels for asthma patients, smokers or those with sensitive skin. So, the desire to connect smart phones with health care is prevalent, but these companies need to comply with medical laws now that they are crossing over into this field as these phones are now considered medical devices. So, when improving technology , it is necessary to follow laws as to not hinder the development process. Lastly, the environment should be scanned as in it can lie threats or opportunities, maybe both. New rivals entering the market should be tracked. As long as the competition and sales strategies of current competitors. So, because the PESTLE analysis questions all these important fields, it seems to be a grand scanner of the operational environment.
Pros of a PESTLE analysis, is that it covers a few different things the SWOT analysis does not. It is simple to use and has a understandable question base. It can be implemented easily once answered. It identifies areas of opportunities and threats as well as impediments and hinders. It also encourages firms to prepare. It should be done routinely to coincide with the changes in the market. Some cons of the PESTLE analysis is that it does not cover everything. While it is true that no analysis covers everything, firms will want as much information as possible. Yet, not too much that the information gathered is too broad. It also requires a lot of time and research to answer the fields in the acronym PESTLE. One can spend hours alone on one area. For example, economic factors to be considered are deflation, policies, rate of interest, employment, global trade, inflation rate. While the social issues can range from lifestyles to buying habits, education level, how does religion affect the business? Growth rate, trends and so on (UKEssays.com, 2018).
Successful business that employ combination strategies are rare (Stewart and Brown, 2014). Firms that operate in a cost leadership manner like Team Andrew, focuses on expediting sensors at a low price. The point of cost leadership strategies is to reduce operating costs and offer low prices. Even if it comes at the expense of other services. Business strategies are not one size fits all. High tech and low-tech customers want different things. This is why companies, such as computer chip or sensor manufacturers, should focus on only cost leadership strategies, because customers care about receiving technology but at low prices.
Stewart, G. and Brown, K. (2014). Human resource management. 3rd ed.
Nano.gov. (2018). Nanotechnology-Inspired Grand Challenges | Nano. [online] Available at: https://www.nano.gov/grandchallenges [Accessed 21 Aug. 2018].
The Balance. (2018). 6 Facts That Tell You How the Economy Is Really Doing. [online] Available at: https://www.thebalance.com/how-is-the-economy-doing-3306046 [Accessed 22 Aug. 2018].
Forbes.com. (2018). [online] Available at: https://www.forbes.com/sites/advisor/2018/04/09/u-s-gdp-steady-as-she-goes/#2cafdebd4af6 [Accessed 22 Aug. 2018].
Purcher, J. (2018). Samsung Learns that Smartphones with Biometric Sensors have to be labelled as Medical Devices & Drops the new Sensor. [online] Patently Apple. Available at: http://www.patentlyapple.com/patently-apple/2014/09/samsung-learns-that-smartphones-with-biometric-sensors-have-to-be-labelled-as-medical-devices-drops-the-new-sensor.html [Accessed 22 Aug. 2018].
UKEssays. (2018). Pros and Cons of PESTLE Analysis. [online] Available at: https://www.ukessays.com/essays/business/pestle-analysis.php [Accessed 22 Aug. 2018].