SWOC analysis can be used to evaluate the Strengths, Weaknesses, Opportunities, and Challenges involved in a multinational firm for carrying out international business. It involves specifying the objective of the multinational company and identifying the external and internal environmental factors which are favorable and unfavorable to achieve that objective. The SWOC analysis provides information that is helpful in matching the firm’s internal resources and capabilities to compete in the international business scenario [24-26].
The SWOC Matrix
A multinational firm should consider its strength correspondingly identify its upcoming opportunities. In many cases, the firm can overcome its weakness by identifying and preparing itself to face the …show more content…
Some examples of such opportunities in a given country include an unfulfilled customer need, arrival of new technologies, loosening of regulations, removal of international trade barriers, low investment cost, low competition or monopoly business opportunity, availability of skilled and competitive human resources etc.
(4) Challenges :
Changes in the external environmental also may present challenges to the firm. Some examples of such challenges include shifts in consumer tastes away from the firm’s products, emergence of substitute products, new regulations, and increased trade barriers.
6. Firms External Opportunity Analysis using PESTEL Framework :
PESTEL analysis is a framework used to analyse the macroenvironment of a business. PESTEL analysis can be used to study opportunities and challenges in international business investment [27]. The major components of PESTEL analysis framework are discussed in this section in detail.
(a) Political Environment …show more content…
Population - Market size is generally a function of population and purchasing power propensity. As a general rule, the larger the population, the better is the market. Although it is rational to suggest that there is no correlation between population size and sales potential, it is the assumption that population is the primary indicator of the size of any market. Many product categories like food, drugs, electronics, and other basic but essential products get greater demand if the population is higher. Thus, because of the size of the population, China and India are usually considered as important markets for many international firms. Geographical distribution of population should also be taken into consideration. In many countries, urban centres are densely populated compared to their rural counterparts. The pattern of shopping in cities varies considerably compared to villages. Demographic parameters like age, education, and composition of the population should also be taken into account while taking the international business
The SWOC Matrix
A multinational firm should consider its strength correspondingly identify its upcoming opportunities. In many cases, the firm can overcome its weakness by identifying and preparing itself to face the …show more content…
Some examples of such opportunities in a given country include an unfulfilled customer need, arrival of new technologies, loosening of regulations, removal of international trade barriers, low investment cost, low competition or monopoly business opportunity, availability of skilled and competitive human resources etc.
(4) Challenges :
Changes in the external environmental also may present challenges to the firm. Some examples of such challenges include shifts in consumer tastes away from the firm’s products, emergence of substitute products, new regulations, and increased trade barriers.
6. Firms External Opportunity Analysis using PESTEL Framework :
PESTEL analysis is a framework used to analyse the macroenvironment of a business. PESTEL analysis can be used to study opportunities and challenges in international business investment [27]. The major components of PESTEL analysis framework are discussed in this section in detail.
(a) Political Environment …show more content…
Population - Market size is generally a function of population and purchasing power propensity. As a general rule, the larger the population, the better is the market. Although it is rational to suggest that there is no correlation between population size and sales potential, it is the assumption that population is the primary indicator of the size of any market. Many product categories like food, drugs, electronics, and other basic but essential products get greater demand if the population is higher. Thus, because of the size of the population, China and India are usually considered as important markets for many international firms. Geographical distribution of population should also be taken into consideration. In many countries, urban centres are densely populated compared to their rural counterparts. The pattern of shopping in cities varies considerably compared to villages. Demographic parameters like age, education, and composition of the population should also be taken into account while taking the international business