Question

1. SWOT analysis is a tool used by an entrepreneur to decide whether or not his/her business can succeed in the business environment. Take a business of your choice and use this tool to explain how to make your business succeed

Answer 1

The SWOT analysis stands for Strength, Weakness, Opportunities, and Threats for any business. It gives management some necessary information to formulate strategy in developing business.

We will create a SWOT analysis for Reebok

Strength - Reeboks is a very well known brand in the world which is sports merchandise and accessories. Its brand recognition is its strength and new 'Delta' logo also gives it a unique identity.
Its products are of high quality and it has created a sub-brand CrossFit to accentuate its image as a primary sports merchandise maker. Reebok has a very well distribution and selling strategy as it has its own stores worldwide and does have online selling channels also. The company has been bought by another giant in sports merchandise that is Adidas which will create synergy in the business.

Weakness - Reebok has lost its market share in recent years. It was the 3rd biggest company in sports merchandise but it has steadily lost the market share to companies such as Puma and Underarmour.
Reebok has lagged behind in R&D and introduced products quite late. The industry leader Nike and other players were able to capture the market share as they introduced newer products.
Further, new entrants in the already competitive market created far more pressure in the segment. Reebok could not market itself as a niche brand which once it was and that is why competing now against local brands in many countries.

Opportunities - Reebok needs to focus on the emerging market in Asia such as China and India to achieve growth. It also needs to increase its focus on R&D to create appealing products. Reebok could explore possibilities of introducing chip-based shoes which could measure exercise data. It can also leverage its brand recognition to market fitness tracker devices like FitBit.

Threats - The biggest threat is the competition from existing as well as newer players in the market. There is also an issue of ethical manufacturing as the products are made in the 3rd world countries which have poor working conditions. The labor is exploited there and activists worldwide lament this which means it can tarnish the brand image.
The fake products sold worldwide are also detrimental to brand image and it also means loss of revenue.