Order custom Harvard Business Case Study Analysis & Solution. Starting just $19
Fern Fort University
Genetic Technologies Limited SWOT Analysis / Matrix
Business Essays, Term Papers & Research Papers
SWOT analysis is a vital strategic planning tool that can be used by Genetic Technologies Limited managers to do a situational analysis of the company . It is a handy technique to understand the present Strengths (S), Weakness (W), Opportunities (O) & Threats (T) Genetic Technologies Limited is facing in its current business environment.
The Genetic Technologies Limited is one of the leading organizatations in its industry. Genetic Technologies Limited maintains its prominent position in market by critically analyzing and reviewing the SWOT analysis. SWOT analysis an immensenly interactive process and requires effective coordination among various departments within the company such as – marketing, finance, operations, management information systems and strategic planning.
Order Now - Genetic Technologies Limited SWOT Analysis
Check out- Genetic Technologies Limited PESTEL / PEST & Environment Analysis
Article continues after advertisement
The SWOT Analysis framework enables 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 known as SWOT Matrix.
The Strengths-Weaknesses-Opportunities-Threats (SWOT) Analysis / Matrix helps the managers of the Genetic Technologies Limited 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 core purpose of SWOT matrix is to identify the strategies that a firm can utilize to exploit external opportunities, counter threats, and build on & protect Genetic Technologies Limited strengths, and eradicate its weaknesses.
Step by Step Guide to Genetic Technologies Limited SWOT Analysis
Strengths of Genetic Technologies Limited – Internal Strategic Factors
As one of the leading companies in its industry, Genetic Technologies Limited 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 Genetic Technologies Limited are –
Read - Genetic Technologies Limited Porter 5 Forces Analysis & Industry Analysis
Article continues after advertisement
- Highly successful at Go To Market strategies for its products.
- Strong Brand Portfolio – Over the years Genetic Technologies Limited has invested in building a strong brand portfolio. The SWOT analysis of Genetic Technologies Limited just underlines this fact. This brand portfolio can be extremely useful if the organization wants to expand into new product categories.
- Superb Performance in New Markets – Genetic Technologies Limited has built expertise at entering new markets and making success of them. The expansion has helped the organization to build new revenue stream and diversify the economic cycle risk in the markets it operates in.
- 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.
- Automation of activities brought consistency of quality to Genetic Technologies Limited products and has enabled the company to scale up and scale down based on the demand conditions in the market.
- Strong Free Cash Flow – Genetic Technologies Limited has strong free cash flows that provide resources in the hand of the company to expand into new projects.
- Good Returns on Capital Expenditure – Genetic Technologies Limited is relatively successful at execution of new projects and generated good returns on capital expenditure by building new revenue streams.
- Highly skilled workforce through successful training and learning programs. Genetic Technologies Limited 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.
Weakness of Genetic Technologies Limited – Internal Strategic Factors
Weakness are the areas where Genetic Technologies Limited can improve upon. Strategy is about making choices and weakness are the areas where an organization can improve using SWOT analysis and build on its competitive advantage and strategic positioning.
Article continues after advertisement
- 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. Genetic Technologies Limited has to build internal feedback mechanism directly from sales team on ground to counter these challenges.
- Need more investment in new technologies. Given the scale of expansion and different geographies the company is planning to expand into, Genetic Technologies Limited 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.
- 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 Genetic Technologies Limited
- High attrition rate in work force – compare to other organizations in the industry Genetic Technologies Limited has a higher attrition rate and have to spend a lot more compare to its competitors on training and development of its employees.
- Investment in Research and Development is below the fastest growing players in the industry. Even though Genetic Technologies Limited is spending above the industry average on Research and Development, it has not been able to compete with the leading players in the industry in terms of innovation. It has come across as a mature firm looking forward to bring out products based on tested features in the market.
- Not very good at product demand forecasting leading to higher rate of missed opportunities compare to its competitors. One of the reason why the days inventory is high compare to its competitors is that Genetic Technologies Limited is not very good at demand forecasting thus end up keeping higher inventory both in-house and in channel.
- The marketing of the products left a lot to be desired. Even though the product is a success in terms of sale but its positioning and unique selling proposition is not clearly defined which can lead to the attacks in this segment from the competitors.
Opportunities for Genetic Technologies Limited – External Strategic Factors
Article continues after advertisement
- The new technology provides an opportunity to Genetic Technologies Limited to practices differentiated pricing strategy in the new market. It will enable the firm to maintain its loyal customers with great service and lure new customers through other value oriented propositions.
- The new taxation policy can significantly impact the way of doing business and can open new opportunity for established players such as Genetic Technologies Limited to increase its profitability.
- Government green drive also opens an opportunity for procurement of Genetic Technologies Limited products by the state as well as federal government contractors.
- New trends in the consumer behavior can open up new market for the Genetic Technologies Limited . 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 Genetic Technologies Limited.
- Opening up of new markets because of government agreement – the adoption of new technology standard and government free trade agreement has provided Genetic Technologies Limited an opportunity to enter a new emerging market.
- 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 Genetic Technologies Limited in other product categories.
- 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 Genetic Technologies Limited. In the next few years the company can leverage this opportunity by knowing its customer better and serving their needs using big data analytics.
Threats Genetic Technologies Limited Facing - External Strategic Factors
- Increasing trend toward isolationism in the American economy can lead to similar reaction from other government thus negatively impacting the international sales.
- Shortage of skilled workforce in certain global market represents a threat to steady growth of profits for Genetic Technologies Limited in those markets.
- New technologies developed by the competitor or market disruptor could be a serious threat to the industry in medium to long term future.
- 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.
- New environment regulations under Paris agreement (2016) could be a threat to certain existing product categories .
- Intense competition – Stable profitability has increased the number of players in the industry over last two years which has put downward pressure on not only profitability but also on overall sales.
- 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 Genetic Technologies Limited
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 Genetic Technologies Limited
- 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 Genetic Technologies Limited
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 Genetic Technologies Limited 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 Genetic Technologies Limited
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 Genetic Technologies Limited
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)
Order Now
Previous 5 SWOT Analysis
- Genetic Signatures Limited SWOT Analysis
- Genera Biosystems Limited SWOT Analysis
- Factor Therapeutics Limited SWOT Analysis
- Esense-Lab Ltd SWOT Analysis
- Dorsavi Ltd SWOT Analysis
Next 5 SWOT Analysis
- Idt Australia Limited SWOT Analysis
- Imagion Biosystems Limited SWOT Analysis
- Immuron Limited SWOT Analysis
- Imugene Limited SWOT Analysis
- Innate Immunotherapeutics Limited SWOT Analysis
HBR Case Studies Solutions
- High-Speed Rail in Portugal case study solution
- Pepsico Changchun Joint Venture: Capital Expenditure Analysis case study solution
- New Denmark Sawmill Upgrade case study solution
- CEO Compensation at GE: A Decade with Jeff Immelt case study solution
- Virgin Mobile USA: Pricing for the Very First Time case study solution