Know-How Exchange : Student Questions

Here is what I consider to be the impact to SWOT related to just comparing a car company that doesn't launch new models (versus other companies that do).

Strength
- lower development/R&D costs due to not designing all new cars every 5-10 years
- brand name gets to be well known

Weakness
- not having anything perceived as "new" or "different"

Opportunity

Threat
- that new technology will come out, obsoleting the technology that they use (like Hybrids may be doing now).
- that consumer demand will change, making the model they produce not what consumers want (example is how SUVs became very desireable in the States - if the company only made sedans, they would have lost out).

This was assuming that the company did not bring out all new versions of a car that sells under the same name (such as the Chevrolet Corvette, which has been sold since the 1950, but has been completely redesigned about every 8 years).

Of course, there are many SWOT issues related to other areas of the business, if you are looking at a specific company.