SWOT Matrix Framework

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Because the enterprise is a whole. And the competitive advantage of business comes from a wide range of sources. Therefore, in the analysis of advantages and disadvantages, we must make a detailed comparison between enterprises and competitors from each link of the whole value chain.

If the product is novel:

  • Is the manufacturing process complex,

  • Whether the sales channels are smooth, and

  • Whether the price is competitive or not.

If the advantages of an enterprise in one or more aspects are the key success factors that an enterprise in the industry should have, then the enterprise's competitive advantage may be stronger. It should be pointed out that the measurement of whether an enterprise and its products have competitive advantages can only be from the perspective of existing potential users, not from the perspective of enterprises.

How to determine the strengths and weaknesses of SWOT?

As mentioned above, the competitive advantage can refer to any superior thing in the eyes of consumers that an enterprise or its products are different from its competitors.

It can be:

  • the width of product line,

  • the size,

  • quality,

  • reliability,

  • applicability,

  • style and image of products, as well as

  • the timeliness of service and enthusiasm of attitude.

Although competitive advantage actually means that a firm has a stronger competitive advantage than its competitors, it is more meaningful to identify which aspects of the firm have advantages, because only in this way can a firm develop its strengths and avoid weaknesses, or address its weaknesses in a realistic way.

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