Analysis of the work of any company is an absolutely necessary part of the work of its management, because it is thanks to the analytical approach to the activity of the enterprise that we can understand how it improves its position in the market and what factors, on the contrary, pull it down. In this article you will show how to do a swot analysis using the example of AvtoVAZ enterprise.
So, for starters, let's figure out what is swat analysis? This type of analysis is a consideration of cases at any company and the identification of four main categories: strengths that help the company to get to the top of the market; weaknesses pulling the firm to the bottom; opportunities for improving the current state of affairs; threats to which the company may be exposed, and which may have a negative impact on the development of the company in the future. If the strengths and weaknesses relate to the internal environment of the company, then threats and opportunities - to the external. For a procedure such as swot analysis, you do not need to look for examples for a long time, because almost every company makes it either for the whole enterprise as a whole, or for individual departments.
The purpose of such an analysis is to systematize existing knowledge about the company and bring them into a convenient form for perception. As a rule, a swot analysis of a trading company, or rather, its results, hangs in the offices of all large firms in a prominent place. This is done so that the information contained in the results of the analysis is constantly imprinted in the minds of every employee of the company.
Now we will try to conduct a swot analysis using the example of AvtoVAZ.
AvtoVAZ's strengths are: the relative cheapness of products, the presence of significant production and trading capacities, and, undoubtedly, popular love - over the history of its existence, VAZs have become members of the families of millions of our fellow citizens. Thus, the main strength of the concern is the warm consumer attitude.
However, there is also a weakness that noticeably overshadows the consumer opinion about the products of the auto giant: this is, of course, the quality of the products. The unreliability of the products of the Togliatti concern is described in ditties, in jokes, and in other manifestations of folk art. It is this weakness that is the main obstacle to the firm's prosperity.
As for the capabilities, the main opportunity for the company may be the assembly of analogues of models of West European manufacturers. The production of "generics" mastered many plants in the CIS countries. AvtoVAZ is no exception, and at this stage it is successfully using the above opportunity.
AvtoVAZ’s main threat is competition from China’s eastern neighbor. It is the influx of even cheaper, but even more low-quality products from the east that undermines the auto giant's position the most. The worst thing is that it is practically impossible to compete with China - today the consumer is ready to pay for low-quality goods if it costs a penny. Specific ways to eliminate this threat at this stage have not yet been proposed.
We showed how a swot analysis is done using the example of AvtoVAZ. As you can see, this procedure is very simple, but it allows you to quickly systematize information about the company and suggest ways to develop it (in fact, the second part of the swot analysis is a forecast of the future development of the company). In order to consolidate our knowledge and gain practical experience, we recommend that you perform a swot analysis on the example of an enterprise in another industry - say, analyze the activities of an agricultural company or a travel company. We wish future economists success in conducting a swot analysis of the activities of the companies entrusted to them!