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Advantages for Both:
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Advantages for Both:
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Advantages | Limitations |
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Improved Corporate Image | Compliance Costs |
Increased Customer Loyalty | Lower Profits |
Cost Cutting | Stakeholder Conflict |
Improved staff morale & motivation | Ethics & CSR are subjective |
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STRENGTH - Internal advantages that can develop a competitive advantage against competitors
WEAKNESSES - Negative internal factors that are unfavorable compared to rivals
OPPORTUNITIES - External possibilities for future development and potential areas for expansion and rising future profits
THREATS - External factors that hinder prospects for an organization. They cause problems for the business
Advantages | Disadvantages |
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simple & quick | doesn’t demand a detailed analysis |
wide range of applications | model is static, whereas business is always changing |
helps reduce the risks of decision-making | useful if decision-makers are open about the weaknesses |
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Advantages | Disadvantages |
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new distribution channel | new customers may not like the product |
geographical expansion | extensive market research required |
attract new market segments |
high risk
New product in a new market
Related Diversification = same industry
Unrelated Diversification = different industry
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