OVERVIEW

Internal and external factors are determinants for a corporation to survive in the commercial world. Well planned businesses, when seeking to assess their market position or expand their market share, usually take into account the four common indicators of Strengths, Weaknesses, Opportunities, and Threats (SWOT).

This assessment can result in various outcomes, and may conclude that “competitors are too strong to be challenged” and that the best way forward is to join them rather than to fight them. The results may also indicate that the barriers to enter a market are too great, and that it is better to acquire an existing market player to save time and costs. There are also circumstances where different companies bring different things to the table, and a decision is made to create synergies by merging.