Korea Electric Power Corporation SWOT Analysis / Matrix

Business Essays, Term Papers & Research Papers

SWOT analysis is a vital strategic planning tool that can be used by Korea Electric Power Corporation managers to do a situational analysis of the organization . It is a handy technique to evalauate the present Strengths (S), Weakness (W), Opportunities (O) & Threats (T) Korea Electric Power Corporation is facing in its current business environment.

The Korea Electric Power Corporation is one of the leading companies in its industry. Korea Electric Power Corporation maintains its dominant position in market by carefully analyzing and reviewing the SWOT analysis.  SWOT analysis an immensenly interactive process and requires effective coordination among various departments within the organization such as – marketing, finance, operations, management information systems and strategic planning.


Order Now - Korea Electric Power Corporation SWOT Analysis
Check out- Korea Electric Power Corporation PESTEL / PEST & Environment Analysis
Article continues after advertisement


The SWOT Analysis framework helps an organization to identify the internal strategic factors such as -strengths and weaknesses, & external strategic factors such as - opportunities and threats. It leads to a 2X2 matrix – also called SWOT Matrix.

The Strengths-Weaknesses-Opportunities-Threats (SWOT) Analysis / Matrix helps the managers of the Korea Electric Power Corporation to develop four types of strategies:

• SO (strengths-opportunities) Strategies
• WO (weaknesses-opportunities) Strategies
• ST (strengths-threats) Strategies
•  WT (weaknesses-threats) Strategies

SWOT Matrix Strategies Objective

The central purpose of SWOT matrix is to identify the strategies that an organization can utilize to exploit external opportunities, counter threats, and build on & protect Korea Electric Power Corporation strengths, and eradicate its weaknesses.

Step by Step Guide to Korea Electric Power Corporation SWOT Analysis

Strengths of Korea Electric Power Corporation – Internal Strategic Factors

As one of the leading firms in its industry, Korea Electric Power Corporation has numerous strengths that enable it to thrive in the market place. These strengths not only help it to protect the market share in existing markets but also help in penetrating new markets. Based on Fern Fort University extensive research – some of the strengths of Korea Electric Power Corporation are –

Read - Korea Electric Power Corporation Porter 5 Forces Analysis & Industry Analysis
Article continues after advertisement

• Strong Free Cash Flow – Korea Electric Power Corporation has strong free cash flows that provide resources in the hand of the company to expand into new projects.
• High level of customer satisfaction – the company with its dedicated customer relationship management department has able to achieve a high level of customer satisfaction among present customers and good brand equity among the potential customers.
• Highly skilled workforce through successful training and learning programs. Korea Electric Power Corporation is investing huge resources in training and development of its employees resulting in a workforce that is not only highly skilled but also motivated to achieve more.
• Automation of activities brought consistency of quality to Korea Electric Power Corporation products and has enabled the company to scale up and scale down based on the demand conditions in the market.
• Successful track record of developing new products – product innovation.
• Strong distribution network – Over the years Korea Electric Power Corporation has built a reliable distribution network that can reach majority of its potential market.
• Strong dealer community – It has built a culture among distributor & dealers where the dealers not only promote company’s products but also invest in training the sales team to explain to the customer how he/she can extract the maximum benefits out of the products.
• Good Returns on Capital Expenditure – Korea Electric Power Corporation is relatively successful at execution of new projects and generated good returns on capital expenditure by building new revenue streams.

---

Weakness of Korea Electric Power Corporation – Internal Strategic Factors

Weakness are the areas where Korea Electric Power Corporation can improve upon. Strategy is about making choices and weakness are the areas where a company can improve using SWOT analysis and build on its competitive advantage and strategic positioning.

Article continues after advertisement

• The profitability ratio and Net Contribution % of Korea Electric Power Corporation are below the industry average.
• The company has not being able to tackle the challenges present by the new entrants in the segment and has lost small market share in the niche categories. Korea Electric Power Corporation has to build internal feedback mechanism directly from sales team on ground to counter these challenges.
• Limited success outside core business – Even though Korea Electric Power Corporation is one of the leading organizations in its industry it has faced challenges in moving to other product segments with its present culture.
• Days inventory is high compare to the competitors – making the company raise more capital to invest in the channel. This can impact the long term growth of Korea Electric Power Corporation
• Need more investment in new technologies. Given the scale of expansion and different geographies the company is planning to expand into, Korea Electric Power Corporation needs to put more money in technology to integrate the processes across the board. Right now the investment in technologies is not at par with the vision of the company.
• High attrition rate in work force – compare to other organizations in the industry Korea Electric Power Corporation has a higher attrition rate and have to spend a lot more compare to its competitors on training and development of its employees.
• Organization structure is only compatible with present business model thus limiting expansion in adjacent product segments.

Opportunities for Korea Electric Power Corporation – External Strategic Factors

Article continues after advertisement

• Opening up of new markets because of government agreement – the adoption of new technology standard and government free trade agreement has provided Korea Electric Power Corporation an opportunity to enter a new emerging market.
• New trends in the consumer behavior can open up new market for the Korea Electric Power Corporation . It provides a great opportunity for the organization to build new revenue streams and diversify into new product categories too.
• Lower inflation rate – The low inflation rate bring more stability in the market, enable credit at lower interest rate to the customers of Korea Electric Power Corporation.
• Stable free cash flow provides opportunities to invest in adjacent product segments. With more cash in bank the company can invest in new technologies as well as in new products segments. This should open a window of opportunity for Korea Electric Power Corporation in other product categories.
• The new taxation policy can significantly impact the way of doing business and can open new opportunity for established players such as Korea Electric Power Corporation to increase its profitability.
• New customers from online channel – Over the past few years the company has invested vast sum of money into the online platform. This investment has opened new sales channel for Korea Electric Power Corporation. In the next few years the company can leverage this opportunity by knowing its customer better and serving their needs using big data analytics.
• Government green drive also opens an opportunity for procurement of Korea Electric Power Corporation products by the state as well as federal government contractors.
• Organization’s core competencies can be a success in similar other products field. A comparative example could be - GE healthcare research helped it in developing better Oil drilling machines.

Threats Korea Electric Power Corporation Facing - External Strategic Factors

• Rising pay level especially movements such as $15 an hour and increasing prices in the China can lead to serious pressure on profitability of Korea Electric Power Corporation
• As the company is operating in numerous countries it is exposed to currency fluctuations especially given the volatile political climate in number of markets across the world.
• No regular supply of innovative products – Over the years the company has developed numerous products but those are often response to the development by other players. Secondly the supply of new products is not regular thus leading to high and low swings in the sales number over period of time.
• Imitation of the counterfeit and low quality product is also a threat to Korea Electric Power Corporation’s product especially in the emerging markets and low income markets.
• Rising raw material can pose a threat to the Korea Electric Power Corporation profitability.
• New environment regulations under Paris agreement (2016) could be a threat to certain existing product categories .
• Growing strengths of local distributors also presents a threat in some markets as the competition is paying higher margins to the local distributors.
• The company can face lawsuits in various markets given - different laws and continuous fluctuations regarding product standards in those markets.

Limitations of SWOT Analysis for Korea Electric Power Corporation

Although the SWOT analysis is widely used as a strategic planning tool, the analysis does have its share of limitations.

• Certain capabilities or factors of an organization can be both a strength and weakness at the same time. This is one of the major limitations of SWOT analysis . For example changing environmental regulations can be both a threat to company it can also be an opportunity in a sense that it will enable the company to be on a level playing field or at advantage to competitors if it able to develop the products faster than the competitors.
• SWOT does not show how to achieve a competitive advantage, so it must not be an end in itself.
• The matrix is only a starting point for a discussion on how proposed strategies could be implemented. It provided an evaluation window but not an implementation plan based on strategic competitiveness of Korea Electric Power Corporation
• SWOT is a static assessment - analysis of status quo with few prospective changes. As circumstances, capabilities, threats, and strategies change, the dynamics of a competitive environment may not be revealed in a single matrix.
• SWOT analysis may lead the firm to overemphasize a single internal or external factor in formulating strategies. There are interrelationships among the key internal and external factors that SWOT does not reveal that may be important in devising strategies.

Article continues after advertisement

Weighted SWOT Analysis of Korea Electric Power Corporation

In light of the above mentioned limitations of the SWOT analysis / matrix, corporate managers decided to provide weightage to each internal strength and weakness of the firm. Organizations also assess the likelihood of events taking place in the coming future and how strong their impact could be on company's performance.

This method is called Weighted SWOT analysis. It is better than doing simplistic SWOT analysis because with Weighted SWOT Analysis Korea Electric Power Corporation managers can focus on the most critical factors and discount the non-important one. It also solves the long list problem where organizations ends up making a long list but none of the factors deemed too critical.

Limitation of Weighted SWOT analysis of Korea Electric Power Corporation

This approach also suffers from one major drawback - it focus on individual importance of factor rather than how they are collectively important and impact the business holistically.

Buy Custom Essay and Term Paper on SWOT Analysis / Matrix , Weighted SWOT Analysis of Korea Electric Power Corporation

Example of Weighted SWOT Analysis

You can email us to get an example document of Weighted SWOT analysis.

SWOT Worksheet & Template

If you like to do your own SWOT analysis or want to make your own Weighted SWOT SWOT matrix then feel free to download Fern Fort University SWOT Analysis Template.

References / Citations & Bibliography

• M. E. Porter, Competitive Strategy(New York: Free Press, 1980)
• A. D. Chandler, Strategy and Structure (Cambridge, Mass.: MIT Press, 1962)
• O. E. Williamson, Markets and Hierarchies(New York: Free Press, 1975);
• L. Wrigley, Divisional Autonomy and Diversification (PhD, Harvard Business School, 1970)
• R. E. White, Generic Business Strategies, Organizational Context and Performance: An Empirical Investigation, Strategic Management Journal7 (1986)