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December 2020

GM SWOT
BusinessManagementMarketingSWOT & PESTLE 

General Motors SWOT | SWOT Analysis of General Motors

by Shamsul December 24, 2020

 

SWOT Analysis of General Motors | General Motors SWOT

 

General Motors (GM) is a leading name in the auto industry. The founder of General Motors Company was William C. Durant who established this company in 1908. Since then, they have been contributing to the auto industry. It is one of the biggest and oldest automakers in the world. Today, we will discuss its strengths, weaknesses, opportunities, and threats. With this General Motors SWOT analysis, you can analyze the company’s work and plans. Let’s start:

 

Company name:  General Motors

Earlier Name:  General Motors Corporation

Established: September 16, 1908 (original), July 10, 2009; Present

Head office:   Detroit, Michigan, U.S.

Founded by:   William C. Durant, Charles Stewart Mott

CEO:  Mary T. Barra

Area Served:  Worldwide

Industry:  Automotive

Products:    Automobile, Auto parts, Commercial vehicles

Services: Vehicle financing

Brands: Chevrolet, GMC, Buick, Cadillac, Baojun, Holden, and Wuling

Production output: 7,718,000 vehicles under various brands

Number of Employees (2019):  164,000

Revenue: (2019) – US $ 137.237 billion

Net Income: (2019) – US$6.732 billion

 

 

SWOT Analysis of General Motors | General Motors SWOT

Strengths of General Motors:

 

Strong Market Dominance:

No doubt, it is one of the leading auto manufacturers in the auto market. It is not only the biggest company in the United States but also leading in market share with almost 17 %.

Extremely Innovative:

GM is highly innovative in its offerings like electric cars, combustion engines, and large investments in R&D. This is the reason it is the first company that provides a million-mile electric vehicle battery to the auto industry.

Powerful Strategic Affiliations:

No one can achieve big targets without any partnership or affiliation. GM understands this thing that’s why they collaborate with SAIC-GM and GM-CATL. These partnerships help the company to achieve its targets.

Safest Cars:

GM is the only company in the auto industry that receives five-star safety. This is the reason they considered the biggest auto company that delivers the safest cars. With this quality, they easily attract customers.

Worldwide Existence:

GM is currently operating internationally across six continents beneath GM International, GM China, and GGM North America that provides to Latin America, Africa, the Middle East, and Europe.

Diverse Brand Portfolio:

Some strong brands are working under the banner of GM such as Cadillac, Buick, Chevrolet, and so on. These diverse brands make the company highly competitive.

Remarkable Sales Policies:

GM is one of the highest selling brands in the world. In terms of sales, it has 12th rank in the United States and 41st internationally.

 

 

SWOT Analysis of General Motors | General Motors SWOT

Weaknesses of General Motors:

 

Dependence on Pickup Trucks and SUVs:

GM heavily depends on its pickup trucks and SUVs. Recently, they face a huge decline in their sales due to the downfall in sales of pickup trucks and SUVs. This is a major weakness of GM.

Downbeat Advertising:

It was disclosed that General Motors defrauded on the amount of emission by its pickup trucks for nearly 5 years. This thing breaks the trust of its customers and clients.

Overreliance on US Market:

General Motors works internationally, but they heavily depend on the US market. If anything happened with the US economy, then there is a maximum chance that GM also faces catastrophic events.

Quality-related Problems:

As we know safety factor always comes first when we talk about auto manufacturing. Minor errors and defects can cause big problems sometimes. It was leaked in 2015 that General Motors used defective ignition switches in its vehicles accountable for 124 deaths.

Lack of Variety:

General Motors mainly works in the manufacture and design of automobiles. If the automobile industry faces any recession then General Motors also experience a decline. This is due to the lack of innovation and variety in its products.

 

SWOT Analysis of General Motors | General Motors SWOT

Opportunities for General Motors:

 

The practice of Eco-friendly Opportunities:

As the community of eco-conscious customers is rising internationally, so it is imperative for General Motors to invest in eco-friendly cars. Even though they are also working in this sector, but it needs huge investments. In this way, they can attract more customers and diversify their portfolio.

Focus on Emerging Markets:

Emerging markets have the potential to expand their business. Well, GM operates in these countries but they need to focus on Asia and Africa due to their population. It will strengthen its market presence and also expand its growth.

Take Benefit of Autonomous Market:

The requirement for self-driving cars is increasing rapidly; GM should invest in this sector. The self-driving cruise of GM is one of the biggest achievements in this sector. In this way, they can exploit things in their favor.

Branch Out Portfolio:

GM should diversify its portfolio from electric cars to electric bikes and so on to increase its product category. It is one of the biggest opportunities for GM that opens the door to more profits and market reach.

 

SWOT Analysis of General Motors | General Motors SWOT

Threats of General Motors:

 

Worldwide Recession:

As the outbreak of Coronavirus force the companies to shut down their offices and business, GM also faces a huge decline in its sales from China that was decreased by 44 percent. This is the first wave of recession. If the pandemic continues, then things become worse and worse.

Trade Pressure:

As the tension between the governments of China and the US are changing due to certain events, both countries called off their trading agreements. Due to this tension, many companies suffer and facing a decline in their revenues. As China is the biggest market, so this kind of geopolitical tension can threaten the company’s overall profit and revenue game.

Problems with Workforce:

Nearly in 34 plants of GM, the protest of 48000 workers causes the loss of 2 billion dollars and the operations are also stopped. This kind of protest can damage the company’s revenue system and image as well.

Lawsuits:

GM also experience many fines, settlements, and penalties due to the selling of trucks that weren’t well-matched with diesel usage regulation in the United States. These types of civil lawsuits and penalties could affect the company’s name and financial growth.

Stiff Competition:

With the presence of heavyweights in the market like Toyota, Tesla, BMW, Mercedes, and many more that offers innovative cars, there is a chance that these companies could damage the growth and manufacturing of GM.

Slowdown of Auto Market:

Due to the recent recession and uncertain events, many automobile companies experienced a huge downfall in their revenue and growth. It is also a big threat for GM that they also face crisis due to these recessions.

Strict Regulations:

Due to the strict environmental laws and regulations, it is really hard for companies to work under these regulations. These things also threaten GM’s future and operations.

 

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SWOT Analysis of Dell | Dell SWOT Analysis

Ford SWOT Analysis | Business Analysis of Ford

 

December 24, 2020 9 comments
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Netflix SWOT Analysis
BusinessManagementMarketingSWOT & PESTLE 

Netflix SWOT Analysis | SWOT Analysis of Netflix

by Shamsul December 19, 2020

 

Netflix SWOT Analysis | SWOT Analysis of Netflix

 

Netflix has nearly 167 million subscribers globally and remarkably growing day by day. It is one of the biggest internet entertainment services in the world and efficiently working in more than 190 countries. They offer web series, films, documentaries, and in several languages to its users. Reed Hastings and Marc Randolph are the co-founders of Netflix. They started their work by selling DVDs. Netflix started its online streaming in 2007. With this initiative, they earned a strong profit. Now, Netflix is one of the leading online entertainment services in the world. If you want to know its working and success story then you need to read Netflix SWOT Analysis completely. In this analysis, you will find out its strengths, weaknesses, opportunities, and threats.

 

Company name: Netflix

Established: August 29, 1997,  Scotts Valley, California, United States

Head office:  Los Gatos, California, US

Founded by: Marc Randolph, Reed Hastings,

Area Served: Worldwide

Industry: Mass media, Tech & Entertainment

Service: Content Platform, TV shows, Film production

CEO: Ted Sarandos (Jul 16, 2020–), Reed Hastings (Sep 1998–)

Type: Public

Ticker symbol: NLFX

Number of Employees (2019): 8,600

Revenue: (2019) – US$ 20.156 billion

Net Income: (2019) US$1.866 billion

Users: 195 million (paid)

 

Netflix SWOT Analysis | SWOT Analysis of Netflix

Strengths of Netflix (Internal Strategic Factors):

 

  • Rapid Growth:

Netflix is one of the most leading online streaming brands with 167 million subscribers in the world. This rapid growth is one of the biggest strengths of Netflix.

  • Strong Brand Image:

Netflix has a strong brand name in the world and it was ranked at number 4 to graded brands by Forbes in 2019. They gained exponential growth within a short period of time.

  • Robust Consumer Base:

As we mentioned above that Netflix is operating in more than 190 countries globally with 167 million active subscribers, this shows that they have a strong consumer base which is the biggest strength of Netflix.

  • Originality:

Originality is one of the biggest factors that show the strength of Netflix. From Tiger King to Money Heist, Narcos, Stranger Things, Orange Is the New Black, and Mindhunter, there are several shows that become popular due to their original content. This strength is a major part of the success of Netflix.

  • Flexibility:

Netflix is very flexible in its tech resources as people can watch their shows on Mobiles, PCs, laptops, and tablets. This thing makes Netflix highly innovative and popular in the eyes of customers.

  • User-centric Approach:

Many users were looking for offline use of Netflix in case of bad internet connection and travel use. That’s why Netflix launched an offline feature (download now) so that people can watch their show with the utmost ease.

  • Reasonable Pricing:

The pricing policy makes Netflix highly effective over its rivals. They offer an 8.99 dollars per month subscription which is very affordable for users. Now, they can watch entertainment content in different genres and better quality. This thing makes Netflix highly competitive. If you want a premium plan then you can get this at 15.99 dollars per month.

  • Award-Winning Shows:

No doubt, the popularity of Netflix’s shows is growing day by day. They get 160 plus nominations at the Emmys which is higher than HBO, NBC, ABC, FOX, and CBS. This thing makes Netflix highly innovative and famous across the world.

 

Netflix SWOT Analysis | SWOT Analysis of Netflix

Weaknesses of Netflix (Internal Strategic Factors):

 

  • Restricted Copyrights:

Netflix has very limited copyrights which means it doesn’t own the majority of its content. This thing affects the company’s image negatively. This kind of weakness makes the company highly vulnerable.

  • Rising Debt:

They offer a wide variety of content in every single country which requires a good amount of money. That’s why debt funds are increasing in order to invest in new content. This kind of increasing debt can threaten the company’s future.

  • Lack of Renewable Energy Resources:

Netflix is also lacking in renewable energy resources and hasn’t developed a strong model to encourage environmental stability. Other tech companies such as Amazon, Facebook, Google, and Apple started practicing renewable energy programs. They are practicing 100 % green initiatives. This kind of thing creates a negative impact on users.

  • Stiff Pricing:

Users always want customized pricing with added choices. But Netflix only offers three kinds of pricing models like Basic, Standard, and Premium. That’s why more people are using Disney+ and other similar streaming platforms that offer better pricing models.

  • Overreliance on US Market:

Almost 50 % of the revenue of Netflix comes from the North American market. This shows that they heavily depend on the US market. It is a main weakness of Netflix because they also suffer if the American economy experiences any recession or downfall.

  • Increasing Prices:

Recently, Netflix has increased its subscription costs while many other streaming platforms like Disney+ and Apple TV+ offer their subscription at 6.99 and 4.99 dollars per month. This kind of thing has damage the trust of customers and Netflix loses its customers.

  • Rising Operational Costs:

Adding innovative and latest content gives a competitive edge but this needs huge funds or money. Due to this reason, the steaming cost of Netflix is increased which is also a weakness of Netflix.

 

Netflix SWOT Analysis | SWOT Analysis of Netflix

Opportunities for Netflix (External Strategic Factors):

 

  • Cost-effective Mobile Streaming Option:

It is imperative for Netflix to offer affordable plans to subscribers so that they can enjoy its content at a lower price. They also tried a 3 dollar per month plan in India that is quite successful for the company. In this way, they can compete with other streaming platforms like Disney+ and Apple TV+ that offer reasonable subscriptions.

  • Utilize Ad-based Model:

Netflix has the potential to earn money from the advertisement sector. Many companies like Google, Amazon, and Facebook are making money from the advertisement sector. It is a great idea for Netflix to increase its revenue by exploiting the ad-based business model.

  • Enhance Worldwide User Base:

Netflix already has 167 million subscribers globally but this is not enough. They have the opportunity to attract more people by offering better pricing plans and content. They can expand their reach in China, Syria, and North Korea and increase their revenue game.

  • Refresh Content Collection:

It is necessary for Netflix to increase its content licensing by expanding agreements with several movie distributors. They are also producing their own content so it is really easy for them to refresh their content library.

  • Partnerships:

Netflix can make alliances with the telecom sector to provide reasonable packages in several countries. They also target local distributors and cable channel operators to make alliances in order to expand their reach and market share.

  • Diverse Marketing:

Netflix should focus on creating local content in their language so that people easily relate and watch content. They also make many shows and movies like Sacred Games in India that was a very successful show.

  • Introduce Better and Cheaper Subscription:

Netflix should revise its pricing policy so that people get its subscription without any fear. They should announce better annual subscription plans at a discount cost so that people use their app for watching content.

  • Support for Black Educational Institutions:

Netflix has donated 2 percent of its revenue to support Black Communities. It costs almost 100 million dollars and depicts the ideal corporate social responsibility.

 

Netflix SWOT Analysis | SWOT Analysis of Netflix

Threats of Netflix (External Strategic Factors):

 

  • Stiff Competition:

There are several big players like Disney+, Apple TV+, HBO, YouTube, and Hulu actively present in the streaming platform. They are the biggest rival of and offer better pricing plans to customers. Due to the presence of these giant players, Netflix is facing stiff and fierce competition.

  • Strict Rules and Regulations:

Due to the regulations from different countries and governments, Netflix is experiencing serious revenue problems. As Netflix is not available in China due to its foreign content, this thing can affect or threaten the company’s future.

  • Piracy:

Due to high monthly and annual subscription fee, people used illegal ways to download and watch movies. This kind of piracy can damage the revenue system of Netflix and create a bad impact on its security.

  • Cyber Attacks:

Due to the pandemic, several Netflix accounts were hacked by hackers. If it continues, then it can cause many severe problems and decrease the profit game of Netflix. It is one of the most serious threats to Netflix.

  • Emission of Carbon:

According to a study, tech-based technologies emit a large amount of carbon. Online streaming platform emits 1 percent of worldwide carbon emission. It is necessary to resolve these types of issues otherwise it can damage the company’s name and image.

  • Government Pressure:

As a matter of fact, the number of subscribers of Netflix is increasing day by day. Recently, the EU commissioner complained about Netflix’s HD content strained transportation. This kind of thing creates a huge impact and they started to provide a standard definition in spite of HD.

 

Netflix SWOT Analysis | SWOT Analysis of Netflix

Recommendations:

 

  1. We recommend Netflix to enter new geographical regions and locations by collaborating with different cable providers in order to diversify its content. In this way, they can provide content in different languages. This thing will engage more people.
  2. Netflix should collaborate with IMDB, Rotten Tomatoes, and other internet services so that they can tell people about their programs and ratings.
  3. It is really important for Netflix to strengthen its security system in order to avoid the risk of piracy and hacking. They can also solve this problem by offering a cheaper annual subscription to users.
  4. Netflix should improve its app and website to make it easy for users. This type of user-friendly website allows people to use it with the utmost ease.

 

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Read More:

McDonald’s SWOT || SWOT Analysis of McDonald’s

Walt Disney SWOT Analysis | Business Analysis of Disney (SWOT)

Starbucks SWOT Analysis 2020 | SWOT Analysis of Starbucks

December 19, 2020 6 comments
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ManagementMarketingScholarly

The Rising Inequality Along with the Polarization

by Shamsul December 14, 2020

 

Explain Theory X and Theory Y from the perspective of both supervisor and worker behavior

Theory X presents a traditional view of management which resembles the autocratic leadership style. The theory assumes that employees are lazy and are not willing to take responsibility, lack ambition, and prefer to be supervised. The managerial implication for this theory is to attain organizational objectives through implementing a coercive and controlling management system. On the other side, theory Y believes that people are happy to work and are motivated towards pursuing objectives. Moreover, people are ready for responsibilities and have a creative problem-solving approach. Managerial implications for this theory are to attain organizational objectives through different rewards. The challenge for this theory is to develop an environment where employees can develop their creativity.

 

What is a professional bureaucracy? Compare and contrast to a machine bureaucracy and a divisional structure

Professional bureaucracy refers to the fact that firms can be bureaucratic without being centralized. The operating work of such organizations is stable which results in predictable in effect standardized behavior. It is a complex process that is controlled by the operators of it.

Machine bureaucracy

A highly bureaucratic organization is like a machine. Governmental agencies along with other types of set-in-their-ways larger corporations symbolize this type of style. The strengths of this form are longevity, consistency, and structure; however, the downside includes limited openness towards a newer perspective, as well as inefficiencies that result from bureaucratic processes, which is very common.

Divisional structure

This is very common amongst larger corporations that are handling various product lines and multiple units of business. In some instances, corporations might divide their products or businesses within divisions for promoting specific management of every division. This format refers to implementing a centralized control where the divisional presidents tend to oversee all work facets within their respective divisions.

 

How do feedback systems work in management theories? Describe relevant theories and give concrete examples

The concept of an organization as a system has introduced the importance feedback holds. Businesses and organizations are greatly dependent upon their environment not only for inputs but, for the acceptance of the output as well. As a result, businesses have a need to develop means so as to adjust as per environmental demands. To put this simply, feedback systems collect information which is a reflection of the activity or a series of an activity undertaken on part of the company.

The systems theory when applied in managerial aspects can be related to Total Quality Management (TQM). In this theory, the systemic conception of the firm tends to strengthen by emphasizing the importance of relationships as being a part of the goal that needs to be attained. The feedback system theory can also be applied to the goal-setting theory of management where feedback plays a very important role as this element provides information through which the organization progresses towards goal attainment. Organizations and individuals can set goals as per the received feedback. For example, if a company has launched a product which is initially considered to have high demand however, through the feedback system, the company came to know that the demand for the new product is moderate, it can immediately change several aspects like budget allocated for the production process or work upon marketing activities.

 

Applying Coase and Benkler, at minimum, what are three ways of structuring business transactions? Be thorough in your explanations.

The three ways of business transaction structuring involve:

  • fiscal
  • legal
  • financial evaluation

The transaction cost approach was developed by Yochai Benkler which refers to the cost of delivering a product or service from the market instead of providing it from within the company. However, Ronald Coase theorem states that the markets are always competitive where there is no transaction cost along with an efficient set of outputs and inputs which will result in the making of an optimal decision.

 

How do behavioral economics and classical economics differ? What are the implications of those differences in terms of real-life impact?

Behavioral as well as classical economics is are two distinct rather opposite realms within economic modeling. The process of understanding the difference between the two allows interpreting its implication in real-life impact. On one side, behavioral economics tends to deal with the inconsistency that exists between what is desired and what was the outcome. For example, if a person is willing to lose weight but is never able to get it done. Additionally, this modeling states that man has irrational behavior. This is related to classical economics which clears that individuals are rational beings. However, behavioral economics assumes that the opposite of this is true.

Within classical economics, consumption and production can be determined through cost and benefit at the margin. Both the producer as well as the consumer believe to make rational decisions. The buying power of the consumers is fostered by gaining the most benefit from every dollar spent whereas, producers tend to work towards attaining the highest possible profit.

 

What are the basic differences in values between economic conservatives and economic liberals?

Economic liberals tend to extend their support towards the rule of law (contract), property rights, free trade, equity injustice, and capitalism. They basically believe that every individual is provided with equal opportunity for economic success and must not be deprived of the rewards associated with his labor unjustly. It refers to the freedom of an individual in the economy to carry on with activities with very limited interference from the government.

Economic conservatives, on the other hand, view social stability and order to be integral components of economic success. Conservatives of one generation most often defend the conservatives of the previous generation because of the perceived threat that the change might bring in.

Explain externalities and the Tragedy of the Commons

Economic efficiency involves that people make decisions over the basis of accurate prices – receiving full benefits for things produced and paying the full cost of the resources consumed. Positive and Negative externalities is a situation in which accurate prices are not present. Operating in a world where there are no patents that might lead to numerous positive externalities. For example, a company works over a remedy for migraine headache for almost a decade and when it is successful, someone else copies it and sell without paying any royalty. This will affect economic efficiency as fewer people will attempt to make research.

An example of a negative externality is that of the Tragedy of Commons. An example is that cows are bought and sent for grazing to the commons until the time arrives for slaughtering. The price of the cow is determined by her weight at the time of sale and the weight depends upon the amount of grass eaten whereas, the amount of grass the cow has eaten depends upon the total number of other cows that were also grazing with the commons.

When a farmer adds a cow in the commons, that added cow, by eating grass, imposes cost overall farmers as their cows will now not gain as much weight as they would have before adding in the new cow. However, this is an external cost and the farmer adding in the cow does not have to pay and as such, this cost is not considered in deciding whether a cow should be bought and grazed with the commons.

 

Broad CSR argues that universal core ethical values should shape business decisions; neoliberalism holds that only profit maximization should. Which view do you think is better able to deal with externalities like pollution, and why?

I think that CSR has more potential to deal with ethical core values that relate to externalities like pollution. CSR is the organization’s legal and moral responsibility towards the environment and community through contributing to education and social programs, working on pollution and water reduction processes as well as earning adequate returns over resources employed. CSR is effective towards pollution because it holds the concept of conducting business activities under strict compliance with the law, while still making profits, voluntarily considers the impact of their operations over the environment within their business decisions. This approach effectively contributes towards improving the quality of life along with implementing the concept of sustainable development.

 

What factor do you think best accounts for the rise in inequality since 1980: technological innovation, ideology, or another factor? Explain in detail and give your reasoning why.

The rising inequality along with the polarization of the societies poses a serious risk to the economy. This is because technology leads to financial inclusion in those countries where there is no financial infrastructure and global markets create trading opportunities. Intelligent automation strikes middle-income groups. Only in the banking sector, many jobs are at the risk of being decimated because of the utilization of artificial intelligence for performing tasks that were previously considered to be very complex for automation. Additionally, with advancements within biohacking and gene editing, there is a threat to human augmentation and longevity which also results in a newer segment of individuals where the elite class emerges from both mentally as well as physical up-gradation.

 

Richard Thaler talks about “humans” and “econs” as having different methods of making decisions. Are humans and econs two different types of people, or are we sometimes humans, sometimes econs? Give supporting evidence for your answer.

The notion of econ versus humans is very easy for understanding decision-making behavior. A human is not always logical as they can react automatically, have intuitions as well as emotions for making decisions, and can also make errors from a rational viewpoint. Econs, on the other side, have logical and rational behavior. They usually have the will and make mental efforts to make decisions. In short, it can be said that humans are different from econs. Humans are emotional, imperfect, and full of bias whereas, econs are perfect, objective, and calculated. Evidence of this statement is that if a person is willing to lose weight and has the information about the number of calories required to attain this goal and those available in different foods. In such a situation, he will only o for a food product that has minimal calories. However, after pursuing the weight loss ambition, the person views an advertisement of ice cream which have an attractive price and states that an individual should have 2000 calories every day so as to effectively function and this appealing deal leads the person to fall into the temptation which eventually resulted in falling out from the bandwagon of weight loss representing lack of self-control which is a clear characteristic of a human.

 

Neoliberalism

Neoliberalism is based on two principles: market fundamentalism, which is that vision according to which markets by themselves are efficient and sufficient for sustained growth and full employment, and the “ cascade effect economy, which is the vision that growth itself inevitably benefits everyone, including the poor, and the best way to help the poor is to maximize growth.

Neither economic theory nor the evidence supports any of these propositions. The market economy has been plagued by periodic crises and massive unemployment; without government intervention, companies have polluted our air and waters; unregulated or poorly regulated banking has caused problems country after country; Recent scandals in the United States involving Enron, Arthur Andersen, and almost every major bank have shown trouble even in one of the best-performing market economies.

I agree with neoliberals that at the heart of all successful economies there are markets, but markets and government need to work in partnership. A balance is necessary, “a third way”, between the extremes of excessive government intervention and the kind of `minimalist government that neoliberals advocate.

United States Government

In the fastest-growing countries, governments have played a central role. Even today in the United States the government continues to play an important role, such as in promoting technology (the Internet was an invention of the United States government and the first telegraph line was also financed by the United States government more than 150 years ago. years) in providing education, even in providing financing (up to a quarter of all loans come from either government-sponsored companies or government guarantees), in ensuring income and health for the elderly. My own research on markets with asymmetric information (different people know different things) showed that the reason Adam Smith’s invisible hand was invisible – according to which markets lead to efficiency – was that it simply did not exist.

In the same way, there have been long periods in history when the poor have actually become poorer as economies grow. Neoliberal policies have focused on macro-stability, privatization, and liberalization. Certain aspects of these policies make sense when done the right way, but neoliberals often lose a sense of perspective, ignore key issues of time and sequence, and confuse means with ends.

Macro stability has been misinterpreted with an exclusive focus on inflation rather than growth-oriented stability. The government should focus its attention on those activities in which the private sector cannot engage, thus it makes sense to privatize steel companies and other industries that the private sector can serve well.

Privatization

But when there are efficient government enterprises, such as the Korean steel mills or the Chilean copper mines, privatization may actually do little, and rather may deprive the government of severely needed revenue, especially if privatization is done poorly which is a frequent case. Privatizing monopolies without proper regulation has proven problematic around the world.

Similarly, some aspects of liberalization make sense, such as removing some regulations, but deregulating banking and liberalizing capital markets, especially if done excessively fast, has led to crises country after country and has been one of the biggest sources of global instability. Some of the problems in America today are the result of deregulation.

 

Economic inequality in America

Economic inequality in American started in the early years of the 70s decade which incurred after several years of economic stability. The country exhibited higher rates of inequality than most of the developed countries arguably because of the less regulated markets of the nation.

The income division in the US has not always been as vast as it is today. In response to the staggering economic inequality in the early years of the 1990s, progressive policymakers along with various social movements successfully fought so as to reduce taxation levels along with leveling up the bottom by means of increased unionization as well as other reforms.

The gap between rich and poor grew last year in the United States to its highest level in more than 50 years of records on inequality, according to figures from the Census Bureau.

Income inequality in the United States grew between 2017 and 2018, driven by large increases in several states in the heart of the United States. Still, the inequality rate remained higher in some wealthy coastal states. This inequality can be associated with the structural theory which stems that the problem of an individual is not only his problem. This refers that if a person is unable to access a healthcare facility for his child, then it is considered a family issue and has an impact on society. If the child fails to get good care, it means that the future generations are being neglected which can have a detrimental impact on society. Additionally, a parent needs to be at home every time to look after the child resulting in withdrawing from the workforce which can also mean that the economy lost a skilled worker.

An increased level of inequality within a country is closely associated with the distribution of income and wealth within a nation which can lead to poor outcomes for education, health, and happiness. The link between inequality and environmental impact is identified over a global level. According to the World Bank (2010), people living in countries having poorer economies are more exposed to disasters such as floods, drought as well as heatwaves. On the other side, high-income economies do have proper planning and better infrastructures to deal with environmental disasters.

Addressing inequality requires rethinking the problem. First, when it comes to fiscal policies and progressive taxation. Tax escalation is a fundamental aspect of effective tax policy. Our research shows that in the upper segment of the income distribution it is possible to raise marginal tax rates without sacrificing economic growth.

The use of digital tools in tax collection can also be part of a comprehensive strategy to stimulate internal revenue. Reducing corruption can improve collection and also strengthen confidence in the government. Most importantly, these strategies allow the generation of the necessary resources to make investments that multiply the opportunities for the communities and people who have been lagging behind.

Budgeting with a gender perspective is another valuable fiscal tool in the fight against inequality. Many countries recognize the need to improve gender equality and empower women, but governments can use gender budgeting to structure spending and taxation in ways that further drive gender equality; in turn, the increase in female participation in the labor force strengthens growth and stability.

Second, social spending policies are increasingly important in combating inequality. When well designed, they can be instrumental in mitigating income inequality and its negative effects on inequality of opportunity and social cohesion.

Education, for example, prepares young people so that as adults they will be productive citizens who contribute to society. Health care not only saves lives, but it can also improve the quality of life. Pension programs can help preserve the dignity of people in old age.

 

December 14, 2020 9 comments
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SWOT Analysis of DELL
BusinessManagementMarketingSWOT & PESTLE 

SWOT Analysis of Dell | Dell SWOT Analysis

by Shamsul December 9, 2020

 

Dell SWOT Analysis | SWOT Analysis of Dell 

 

Dell is one of the biggest players in the PC market. They offer PCs, Hardware, Software, Smartphones, Televisions, and many more to its customers. It was founded in 1984 and the current CEO is Michael Dell. We certainly can learn too many things from Dell because it is ranked at number 3rd even in the presence of heavyweights like HP, Apple, Lenovo, IBM, and so on. That’s why we decided to analyze Dell SWOT, strengths, weaknesses, opportunities, and threats. Keep reading to check the insight view of Dell.

 

Company: Dell Inc.

Formerly: PC’s Limited (1984-1987)

Type: Subsidiary

 CEO: Michael S. Dell (Jan 31, 2007–)

Established: February 1, 1984

Founder: Michael S. Dell

Headquarters: Round Rock, Texas, U.S.A.

Industry: Computer software, Computer hardware

Area served: Worldwide

Type: Public

Employees (early 2020): 165,000

 Annual Revenue (2019): US$92.15 Billion

 Profit | Net income (2019): US$5.529 Billion

 

Products & Services: Computer Software | Computer Hardware | Personal Computers | Servers | Peripherals | Data Centers | IT Services | Smartphones | Televisions | IT Consulting

Competitors: HP | Apple | Lenovo| Sony | IBM | Microsoft |Samsung | Toshiba | Acer | ASUS

 

SWOT Analysis of Dell | Dell SWOT Analysis

 Strengths of Dell:

 

Strong Universal Presence:

With 363 offices worldwide, Dell has a strong global presence. It is 3rd largest PC manufacturer in the world and contains a 15 % international market share. There is a chance that this market share will increases to 20 % at the end of 2020.

Robust Financial Status:

Many countries and businesses struggle due to the impact of the pandemic, but Dell also goes strong in this pandemic as its sales of PCs, tablets, and notebooks increased. They also earn a huge sum of money from its development of software.

Remarkable Brand Image:

Dell has a strong brand image in the world with its robust market share and presence. It is regarded as the 90th most valuable brand in the world and the 12th best employer in the world. These things predict the strong image of the company.

Innovative Offerings:

Dell is also diversified in its product categories like PCs, laptops, TVs, smartphones, and many tech-based offerings. This is the reason it is one of the most stable brands in the globe.

Enhanced Investments in R&D:

They increased its investment in R&D to 20 billion dollars. They are also investing in the research and development sector in order to increase their market reach and share. In the last five years, the stability and growth of Dell are increasing day by day.

Extremely Innovative:

As modernity and innovation are one of the major ingredients for success, that’s why Dell introduces new features and technologies in its offerings. This is a major strength of Dell that’s why they emerge as a powerful brand.

Modified Customization:

The users of this century want innovative services and Dell is introducing new features in its products day by day. They also allow their users to come into their outlets and customize their PCs and laptops.

High-Quality Products:

Due to high-quality products, Dell succeeded to retain a strong consumer base. Latitude Rugged Express is considered one of the most innovative and long-lasting laptops of Dell.

 

SWOT Analysis of Dell | Dell SWOT Analysis

Weaknesses of Dell:

 

Overreliance on Technology:

Dell mainly focuses and invests in tech-based services which can cause a loss in its revenue in case of any decline in the tech sector. This weakness exposes the company’s catastrophic losses in the future.

Lack of Innovation:

Dell earns a major sum of its profits from its PC sales. This kind of overreliance on single products shows that they are lacking in diversification and innovation. This thing also causes damage to the company.

Few POS:

The main reason for the success of any organization depends on the point of sale. Many competitors of Dell diversify their reach in many regions of the world whereas Dell only focuses on major outlets and shops. This kind of poor strategy threatens the company’s worth and profit.

Decreasing Service Delivery:

Unnecessary cost-cutting in many projects leads to many problems of profits and growth. it is important for Dell to invest in effective projects to expand its portfolio.

 

SWOT Analysis of Dell | Dell SWOT Analysis

Opportunities for Dell:

 

Target Emerging Markets:

As we know emerging markets have the potential to increase any company’s growth and profit, so Dell should focus on emerging markets because these people love to use quality products and services. They can offer cloud computing services in Asia and Africa to increase their sales.

Enlarge Growing Divisions:

The rising demand for smartphones and tablets is a big opportunity for Dell. They can invest in these sectors to expand its portfolio. They also offer smartphones but by introducing tempting features they can increase their sales and profits.

Mergers and Acquisitions:

Many big companies and organizations are growing rapidly with the help of successful acquisitions and mergers, so it is important for Dell to make big acquisitions and partnerships so that they can increase its reach in every region of the globe.

Fortify Networking Services:

Many companies are now focusing on networking services for data management, but Dell is already working in this sector. The only thing they need is to strengthen their networking services to become more powerful.

 

SWOT Analysis of Dell | Dell SWOT Analysis

Threats of Dell:

 

Declining PC Market:

As we mentioned earlier that Dell heavily depends on the sale of its PCs, but the PC market is on the decline due to the advancement in technology in the form of laptops, tablets, and notebooks. This thing can be the biggest threat to a company’s revenue and sustainability.

Second Wave of COVID-19:

As the first wave of pandemic devastated the world, but the second wave can cause more damage. This thing also leads to much financial crisis and a loss in revenues for Dell. Many companies and firms are suffering due to this pandemic.

Fierce Competition:

The major giants like HP, IBM, Toshiba, Lenovo, and so on can also affect Dell’s market share. They offer better quality at reasonable prices to their customers that can threaten the company’s profitability. Many counterfeits are also providing this type of service at an affordable cost that also creates a bad impact on Dell’s revenue.

Recession:

Just like other companies, Dell also facing a looming recession. Many people lose their jobs and business are shutdowns due to the devastation of the pandemic. These kinds of looming recessions can affect and threaten Dell’s stability and growth.

High Tariffs:

Many countries and governments impose high tariffs on the import and export of electronics. In 2019, many tech companies rejected the proposal of tariffs on electronic products. This type of laws and tariffs can also threaten the future of Dell.

Legal Problems:

Dell and other tech companies face huge criticism and lawsuit due to exploiting child labor in Congo. This kind of negative scandals and lawsuits create a bad impact on Dell’s image and growth.

The Dell SWOT Analysis is completed. Our team is available to carry out a SWOT Analysis of the required company or product.

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Read More:

McDonald’s SWOT || SWOT Analysis of McDonald’s

Walt Disney SWOT Analysis | Business Analysis of Disney (SWOT)

Starbucks SWOT Analysis 2020 | SWOT Analysis of Starbucks

December 9, 2020 6 comments
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SWOT Analysis Baidu
BusinessManagementMarketingSWOT & PESTLE 

Baidu SWOT Analysis | SWOT Analysis Baidu

by Shamsul December 8, 2020

 

Baidu SWOT Analysis | SWOT Analysis Baidu

 

Baidu, Inc., A Chinese established international technology company that is engaged in an internet search service providers. This search engine assists individuals to search for the required information and marketing solutions worldwide. SWOT analysis is a tool that is used by managers to evaluate their company’s working and strength. In this SWOT analysis, they find out their strengths, weaknesses, opportunities, and threats. In this Baidu SWOT analysis, we will talk about Baidu’s business environment and working. No doubt, Baidu is the biggest company in this industry. They maintain their position in the market by constantly reviewing their operations and strategic planning. In this analysis, we will understand Baidu’s internal as well as external strategic factors. It is a 2×2 matrix which is also called a SWOT Matrix. This set consists of 4 types of strategies:

  • Strengths-opportunities (SO).
  • Weaknesses-opportunities (WO).
  • Strengths-threats (ST).
  • Weaknesses-threats (WT).

 

Established: January 1, 2000

Head office: Beijing, China

Founded by: Robin Li, Eric Xu

Area Served: Worldwide

CEO: Robin Lee (co-founder)

Service: Search Engine

Industry: Internet

Type: Public

Number of Employees (2019): 38,000

Revenue: (2019) – US$ 15 billion

Net Income: (2019) a net loss of US$ 328 million

 

Baidu SWOT Analysis | SWOT Analysis Baidu

Baidu’s Strengths (Internal Strategic Factors):

Baidu is one of the biggest companies in its industry, so it has many strengths or strong points that enable the company to create a powerful market share. Let’s discuss some major strengths of Baidu:

  • The major strength of Baidu is its free cash flow resources that allow them to invest in new projects or ventures in order to expand the company’s portfolio.
  • Baidu has strong market strategies that make them above hand over its competitors.
  • By entering new markets, Baidu has made a strong position. That’s why their revenue system and the economic cycle is rising day by day. This kind of growth makes it a powerful brand.
  • Baidu arranges special programs to train their workers. Their skilled workforce is one of the biggest reasons behind the success of Baidu. These types of training programs make their workforce highly professional and motivate them to achieve bigger targets.
  • With a professional team of customer relationship management, Baidu has successfully got loyal customers. They satisfy their customers by providing their best. That’s why they have a strong customer base.
  • With automation in their working, Baidu’s product quality and consistency are increased. It is also a major strength of the company which makes it far better than their rivals or competitors.
  • Successful and profitable acquisitions and mergers make the company highly competitive. With the help of these factors, they streamline their operations and dealing. Their supply chain network is very reliable.
  • With its useful offerings and quality services, Baidu has a very strong position in tech-based companies. This thing allows the company to diversify its portfolio in order to give new and innovative products to customers.

 

Baidu SWOT Analysis | SWOT Analysis Baidu

Baidu’s Weaknesses (Internal Strategic Factors):

In this section, we will talk about the weaknesses of Baidu. If Baidu focuses on these weaknesses and finds effective solutions to solve these problems, then it can diversify its operations and earn more profits. Let’s discuss some major weaknesses:

  • The marketing team of Baidu is very weak as they fail to promote brand or product effectively. However, their products are successful in terms of sales, but effective promotion and advertisement are a plus. They should focus on this issue if they want to increase their sales and revenues.
  • The company fails to deliver new products. But they are going strong with their core offerings. It is imperative for Baidu to focus on new segments so that people can take advantage of their services. This is beneficial for the company.
  • As compared to other companies, Baidu invests a major portion of their income in employee training. This thing can be the biggest weakness especially in a time of crisis. It is necessary for Baidu to consider this weakness and address this problem.
  • Baidu is successfully working in many countries, but they need to focus on emerging markets by investing in the latest technologies. This is the major weakness of Baidu, so they need to invest in new sectors as many organizations are already doing.
  • The financial team of Baidu is very poor. The difference between liquid assets and current assets is very huge. This weakness can badly impact the company’s work.
  • Many organizations investing in research and development programs in order to expand their operations. But Baidu is still struggling to invest in this segment. Even though they invest a huge sum in this segment, but this is not enough as compared to its rivals and competitors.
  • The biggest issue of Baidu is its cultural working. As they solve this problem by merging small companies, but this thing is still not in the favor of the company. The different work culture is the biggest weakness of the company.

 

Baidu SWOT Analysis | SWOT Analysis Baidu

Baidu’s Opportunities (External Strategic Factors):

In this section, we will talk about the opportunities for Baidu. They have the potential to diversify their operations and earn more revenues. Baidu should pay attention to these opportunities as given:

  • The initiative of Government Green drive enables the company to diversify its products to different states and governments. It’s a big opportunity for Baidu to utilize this chance.
  • Many governments announce free trading agreements which can be beneficial for the company. Now, companies can exchange their technologies and products without any restriction. Now, it totally depends on Baidu to enter the emerging countries to expand their reach and market value.
  • It is important for Baidu to stabilize their free cash flow. In this way, they can invest in major new segments and products. They have the opportunity to invest their money in innovative technologies. This thing can open a big door of success for Baidu.
  • With new environmental strategies, there are several opportunities emerges for Baidu. It is a big chance for Baidu to invest in new technology in order to acquire considerable market share in the latest product segments.
  • It is imperative for the company to follow the trends and identify the consumer’s changing demands. Work accordingly in order to provide the best to your customers. This thing will create a huge revenue system and expand its new product category.
  • Baidu should understand the power of online channels or platforms. Due to recent events, many companies earn huge profits from their online resources. It’s an opportunity for Baidu to invest in online channels in order to increase their growth and sales. Work and research properly before investing in online platforms.
  • As people are spending their money on products, it is necessary for Baidu to target new customers to enhance their expansion and market value.

 

Baidu SWOT Analysis | SWOT Analysis Baidu

Baidu’s Threats (External Strategic Factors):

Due to the presence of big or heavyweight players in the market, there are several threats that can damage the company’s revenue system and image. Want to know these threats? Below, you will find some serious threats for Baidu:

  • As we mentioned earlier that many organizations are investing in new technologies and products, these things can badly affect Baidu’s future and work. There is a chance that they may lose their worth if their competitors rise at this speed.
  • Baidu is working in many countries globally, but political issues and currency fluctuations can be some serious threats for Baidu. They can impact their operation and can affect their revenue system. It is important to keep eye on geopolitical policies and changing market trends.
  • Better offerings from the rivals at lower rates can also damage the company’s worth and value. These rivals offer new and innovative products at a reduced cost that affects Baidu’s product and revenue.
  • New environmental laws and regulations can also threaten the company’s major products.
  • The rise of local marketers or companies could be the biggest threat to Baidu. These local competitors can fill the gap with their offerings.
  • Changing customer needs and online platforms could also threaten the company’s working. As Baidu is lacking in online presence, so it’s a big issue.
  • Rising pay level protests like 15 dollars per hour and expanding costs in China can be a serious threat to the profits of Baidu.

 

Baidu SWOT Analysis | SWOT Analysis Baidu

Limitations of SWOT Analysis for Baidu:

Many experts consider SWOT analysis a useful tool for assessing any company’s working, but it has certain limitations. Let’s discuss the limitations of SWOT analysis:

  • Some capabilities of any company can be their weakness and strength at the same time. It is one of the biggest limitations of SWOT analysis.
  • This analysis shows the working of any organization or company, but it won’t show how to get a competitive edge in the market.
  • As opportunities and threats are variable things, so it is really hard to predict the exact issues and solutions. This is also a major limitation of SWOT analysis.
  • Many experts also considered SWOT analysis as an exaggerated analysis. They think it is not as useful as it looks. So, this kind of reservations makes the SWOT analysis poor and weak.

 

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Marketing Through COVID-19 || Marketing Strategies in Time of Coronavirus or Crisis

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December 8, 2020 6 comments
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