SWOT Analysis Paper Sample
SWOT Analysis Paper Sample
The strengths, weaknesses, opportunities, and threats of two companies operating in a similar environment with the same client base may be related. Furthermore, due to the differences in modern-day business dynamics, the preliminaries above may significantly differ even in the face of similar channels of market distribution, market segments, and product portfolios. In the write-up below, a SWOT analysis is run on two companies: Facebook and Match.com.
SWOT Analysis - Facebook
A SWOT analysis on Facebook is illustrated below.
Strengths
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- Customers on the site can indulge in other interactive online platforms such as Messenger that is merely a sub-application on Facebook (Market Line par. 2).
- The number of users continues to increase exponentially. Each year, the company signs over a thousand new subscribers to the site (Market Line par. 2). In essence, the percentage of the latter in the rural regions across the world fortifies the image accrued to the company.
- The good reviews received by Facebook over the consistencies in their services over the years is another strength. Due to the numerous optional surveys conducted through pop-ups and inbox messages, the business enterprise continuously gathers information on ways to improve their services (Market Line par. 2). In particular, the latter is imperative since it directs how well the company adjusts its application to match the needs of both the new users and existing client base.
- Notably, unlike many online applications that take a considerable time to adjust the desired customer experience, Facebook enjoys the ability to swiftly implement suggestions and consideration raised by its clients (Market Line par. 2).
Weaknesses
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- Some customers complain of the weak Click-Through Rate (CTR) on Facebook. The company has been faulted for failing to control the advertisement pop-ups and their consistency on its application (Market Line par. 2).
- As much as Facebook continues to dominate the social networks industry, it lacks the acumen to reinvent own services constantly. The latter requires a competitive website customization as compared to other media networks such as LinkedIn and Twitter (Market Line par. 2).
- Facebook operates on the sales revenues made through advertisements. Such trends are undoubtedly risky for such a large corporation (Market Line par. 2).
- The attitude towards the privacy policy has been one of the most controversial tragedies to befall Facebook. Customers regularly complain of being hacked and having their information tapped because of the weak protection of users’ data (Market Line par. 2).
Opportunities
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- Facebook has the opportunity to expand its customer base by increasing the number of new users. The provision of mobile handsets to rural communities across the world escalates the chance to reach untapped markets.
- The market segmentation in China is one of the hardest ones to penetrate. By learning the diverse market structure in the region, Facebook has the opportunity of expanding its influence to the vast Chinese market (Facebook par. 3).
- Notably, with the rise of new methods of collecting revenue using social media platforms, Facebook should explore the latest techniques of gathering revenue from own website. For example, due to the large business and social communities having pages on Facebook, opening a marketplace where customers meet their suppliers increases the source of revenue for the company (Facebook par. 4).
Threats
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- One of the threats facing Facebook is the increasing number of internet users. Each day, a new set of users are joining the community. In retrospect, the company must create an involving platform that engages both the original and current users (Facebook par. 5).
- In the case where the users use ad-block extensions, Facebook loses a considerable amount of revenue.
- Identity theft among Facebook users is invariably high (Facebook par. 5).
SWOT Analysis - Match.com
A SWOT analysis on Match.com is illustrated below.
Strengths
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- March.com enjoys high levels of customer satisfaction from its proper relationship management. Majority of customers cherish the privacy offered by the company (Fern Font University par.1). In essence, good brand equity exists from both the current and potential customers.
- Match.com enjoys the excellent performance in new markets. It possesses the expertise of expanding own revenue streams and diversifying the economic cycle (Fern Font University par.1).
- The enterprise has a strong brand portfolio. Over the past three years, the company has expanded its product base to include more goods other than the primary matching services (Fern Font University par.2).
- Match.com has a secure distribution network. The company reaches a large customer base all across the world. Additionally, the firm has stable and reliable suppliers in terms of minimizing the supply chain bottlenecks (Fern Font University par. 3).
- The high skilled workforce is one of the critical strengths enjoyed by Match.com. Furthermore, the firm encourages constant customer relations training and learning programs that are mandatory for each employee. Regular training and motivation ensures the staff is focused on improving customer sales (Fern Font University par.4).
Weaknesses |
- Due to the nature of the competition in the social networking industry, dating companies must continuously update their systems and networks to correspond to the changes. Currently, considerable gaps exist in the product range. However, from the evidence from the previous years, the company is not good at demand forecasting. Consequently, a higher inventory occurs as compared to the sales made (Fern Font University par. 5).
- Notably, looking at the organizational structure used by Match.com, there is limited expansion in relation to the adjusted product segments. The current corporate structure can only operate under the present business models (Fern Font University par.2).
- Little effort is taken to maintain the research and development content that matches the progress in the industry (Fern Font University par. 4).
- Match.com has not matched the challenges posed by new entrants in the market. Over the past years, the enterprise has lost some of its customer niches to new competitors in the market.
- As per the financial records, there is improper conducting of financial planning directives of the corporation. In particular, using the information available on the current assets and liquid assets ratios, the company cannot service its short-term obligations.
Opportunities
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- The dating industry has the potential of sustaining market development, thus proving an opportunity for Match.com to use its technological economies of scale to beat the competitors (Fern Font University par. 4).
- The new social media policies will ensure an even operating field for all the dating companies in the industry. Match.com can gain credible market share by using new product strategies (Fern Font University par. 5).
- By ensuring the company enjoys a stable free cash flow, Match.com can invest in new product strategies. Additionally, the corporation may purchase new technologies that will aid in increasing sales (Fern Font University par.6).
- The growing social media presence around the world is an opportunity to increase the firm’s current base. Match.com has the opportunity to capture new customers and grow their market share. The growing online platform will promote product differentiation and leverage this opportunity to know its customers better (Fern Font University par.6).
Threats |
- The new and potential entrants in the dating industry pose a significant threat to the sustainability of Match.com. The growing strengths of the local dating sites posed the most substantial threat due to their enhanced familiarity among users (Fern Font University par. 7).
- The growing trends in isolationism across the world, and most especially in America, have a substantial impact on the international sales made by the company. An intense competition threatens the number of players in the market (Fern Font University par.7).
- The demand for Match.com highly fluctuates and is seasonal. The company must develop techniques to handle the deficits during the short-term period of low sales.
- A shortage of the skilled workforce.
- Changing customer behavior from an online platform to foster a more physical infrastructure.
- The rising pay levels in China have led to the severe pressure on the profitability of Match.com (Fern Font University par.8).
conclusion
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Works Cited
Market Line. “Facebook, Inc. - Strategy, SWOT and Corporate Finance Report.” MarketLine, 2017, www.store.marketline.com/report/2624017--facebook-inc-strategy-swot-and-corporate-finance-report/.
Fern Font University. “Match Group, Inc. SWOT Analysis / Matrix.” Fern Font University, 2016, fernfortuniversity.com/term-papers/swot/nyse/3739-match-group--inc-.php.
Fern Font University. “Match Group, Inc. SWOT Analysis / Matrix.” Fern Font University, 2016, fernfortuniversity.com/term-papers/swot/nyse/3739-match-group--inc-.php.