Opportunities and constraints in the industry environment
Possibilities in the business environment are individuals factors offering possibilities to get a business to expand to be able to make more sales and profits. Limitations are all those factors that limit a chance to grow, and minimize sales and profit potential. A useful method of assessing chances and restrictions is to accomplish what is known as being a SWOT research. Strengths and weaknesses are internal to the organisation. Typically they connect with the resources of the organisation, as well as its structure and leadership, in addition to the extent of its marketing. Market concentrated organisations happen to be strong mainly because they know very well what their customers need. Opportunities and threats (constraints) exist in the external environment. Opportunities connect with the market, to the development of fresh technologies, and external factors such as federal government policies. Hazards relate to what the competition does as well as legal and other constraints. A good example of external opportunities and constraints is the building market in the UK today. The government is encouraging builders to build about 'brownfield' in contrast to 'greenfield' sites. The restriction therefore can be not being able to build up on greenfield sites as the opportunity is that of developing on brownfield area. The best way of thinking about limitations and opportunities is to appreciate that good businesses will keep pace with turn limitation into options, while at the same time building on existing opportunities. Organisations should make use of their strengths such as creating a good popularity, and encounter in a particular field or perhaps segment with the market in conjunction with good advertising resources, to build competitive advantage.