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SWOT and VCA (Disadvantage of SWOT (SWOT analysis becomes impossibly…
SWOT and VCA
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Swot Purpose
The main purpose is to get managers thinking about everything that could potentially impact the success of a new project. Failure to consider a key strength, weakness, threat or opportunity could lead to poor business decisions
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VCA Definition
Value chain analysis allows businesses to examine their activities and find competitive opportunities.
Importance of VCA
Gain Competitive Edge: Porter’s value chain model provides an advantage for competitive analysis of cost and differentiation.
Higher Profitability: When the company reduces the cost of a product or creates product differentiation, it can increase its profit margin and sales.
Standardized Process: In the process of enhancing the value created at each step, the organization is engaged in setting up superior benchmarks to standardize all its activities.
Improves Customer Relationship: With better and improved products or services, the organization can strengthen its relationship with its customers and associates.
Optimizes Inventory: An enhanced supply chain management results into a streamline inventory management, thus ensuring an optimum level of stock.
Reduces Cost and Delivery Time: By using the VCA for a cost advantage, the organization can attain cost minimization. Also, with a well-managed supply chain, the delivery and transition time can be reduced.
Better Vendor Management: The value creation in the process of inbound logistics, lead to a higher control over the suppliers.
SWOT is a strategic planning technique used to help a person or organization identify strengths, weaknesses, opportunities, and threats related to business competition or project planning.