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INTRODUCTION

The SWOT is used to analysis internal and external environment. When

considering the strategic planning process, SWOT is playing a very

important part. Structure of the SWOT has been designed by Edmund

P.Learned, C.roland, Christiansen, William D.Guth and Kenneth Andrews in

the 1960. It is recognized as (SWOT) Weaknesses, Strengths, Opportunities

and Threats by Albert Humphrey from Stanford University. It is a result of

Team Action Model Research project. SWOT spreads from the TAM concept.

It is an important to analyses the internal and external environment for the

strategic planning. SWOT is represented internal factors and external

factors which affect to a company. Internal factors are Strengths (S) and

Weaknesses (W).

SWOT analysis is the most well-known tool that is used for there auditing

and analysis on whole strategic position of any business and its

environment. In other hands, it is the basis for assessing the internal

potential and limitations and the feasible opportunities and threats from the

external environment. SWOT shows all positive and also negative factors

out side and inside the firm that disturb the success of the company. It is

major purpose is to recognize the approaches that will generate a good

model which firm on specific business. Hence it will best support an

organization's capabilities and resources to the requirements of their

environment. A reliable study of the environment, which the firm functions

supports in forecasting, predicting the future plans. It is important to

understand the changing trends and also helps in comprising them on there

decision-making process of the company.

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Internal environmental factors that hold to the firm usually can be classified

as strength and weaknesses. External to the firm can be classified as

opportunity and threats. Analysis of the internal and external environment

in the strategic environment is referred to as SWOT analysis. The SWOT

analysis offers information that is supports in the firm resources and

abilities to the modest environment of the company which it operates.

A firm's strengths appear as its capabilities and resources. They are using

to achieve a competitive advantage. Those are customer satisfaction,

market share, customer retention, and product or service quality, pricing

effectiveness, distribution effectiveness, promotional effectiveness,

positioning, targeting, sales force effectiveness, innovation effectiveness

and geographical coverage. The absence of firm strengths may be observed

as a weakness. Which have lack of marketing expertise, indifferent services

or products, location of their business, poor quality services or goods and

damaged reputation? When consider external environment investigation

may expose confident new opportunities for growth and profit. So their

opportunity may be a developing and improving market such as the

mergers, Internet, joint ventures or the strategic alliances, which moving

into new competitive market segments which offer that improved market

and profits there vacated by the an ineffective competitor. So it is

conveyances us to an external environment change is called threats to the

organization. Those are new competitor for firm market, increase price of

services or product. With competitors and a competitor has a new,

innovative service or product

The SWOT analysis can help as an interpretative screen to reduce the

details to a manageable amount of key issues. Considering the internal and

external condition analysis can create a large amount of information. Those

can be highly relevant or not. Strengths may appear as the foundation for

building a competitive good advantage, and also weaknesses may delay it. It

is important to be understood these 4 aspects of there situation, so a firm

can be a better influence its strengths, correct its weaknesses, exploit on

opportunities, and discourage potentially threats. Skoda Company had done

SWOT analysis and identified weaknesses, strength, threats and benefits of

SWOT analysis are given below.

Identified Weaknesses of Skoda

According to the Skoda Company SWOT analysis shows two major

weaknesses could be identified they are less market share and poor

perception. When it is considered the Skoda their market share is 1.7

percent. So it reviews a small partition in the car market. Other one is poor

perceptions actually this is a weakness due to poor perceptions of the

brand. These associated to Skoda cars' which have had eastern European

origins those cars had poor vehicle quality, assembly, design and materials.

So these poor perceptions were affected owners.

Strength used to overcome the weakness of Skoda

The Skoda brand name is strength of the Skoda. It has been used to uplift

there market share. Skoda was able to have 1.7 percent market share. Any

way it was recognized as weakness of the Skoda by SWOT analysis, any how

there brand name has been recognized as strength of Skoda by SWOT

analysis. At present this brand is now being more mainstreams, as it

benefits it increases in both brand recognition and awareness. Brand name

has been used to develop the market share of Skoda Company.

The quality of cars was increased and it is quantifiable and identifiable

strength of their crated brand name was helped to the company to generate

increased and develop profits and sales. Actually brand name plays an

important role in dominating market share. When there is a good brand

name people may be well aware of the product and they are willing to bye

it. Other key point is there having a strong business through efficient

distribution channels. When it visible all their products at anywhere it

automatically convenient to choose. So using limited resources more

production is achieve without loosing money. For the customer satisfaction

the strength of the Skoda was helpful.

Skoda created a Poor perception, because they used eastern European

origins as mentioned earlier. Their cars had poor vehicle quality, assembly,

design, and materials. The Skoda owners also were affected by poor

perception from 1999 onwards. Under the Volkswagen AG ownership, they

were able to change this negative image with the help of customer

satisfaction. There after cars were no longer seen as low quality or low-

budget.

The SWOT analysis, which is greatest to emphasis in what the customers

and market, sees as the company's major customer service strengths. In

every market, there are market supporters and market frontrunners' in

every market. Companies today trust less upon whether those are first, or

last at market, but as an alternative focus on reaching the market on time.

Any way, in customer service, disagreement was able to produce those

companies as service leaders. Always it is trying to win the day. According

to that, which are the company's highest strengths in customer service from

the lookout of its company's market and customers? In opinion of these

facts it is not unexpected that there is rising attention in understanding the

connection between customer satisfaction, quality and firm performance.

SWOT analysis has been used to whole considerate of the brand's

weaknesses acceptable it to grow an approach to build up the brand and

take benefit of the prospects in the market. It concentrated on its prevailing

strengths and provided their cars focusing on the customer awareness. It

was recognized beginnings in the market introducing new products and

differentiates on its product series. Skoda manufactured new diverse cars to

fulfill customers and occupied the cavity of market.

Strategic plans are required to explain what types of strategic objectives

and also organization may like to accomplish and how this is to be done.

Strategic plans must consider the quantity of resources available. The

critical resource will be capital. So it appears as new competitor in the

market, price wars with those competitors and he has a new, innovative

service or product. When consider the Uk car market Skoda faced a threat.

There fifty different car makers sold Two hundred models. So to overcome

these problems they needed to increase the production rate within there are

over 2,000 model derivatives. Skoda needed a good and satisfactory strong

product range in the UK and globally. When consider In UK the Skoda

brand being characterized by the seven different cars. Each one has been

designed to demand to different market segments. Skoda manufactured

new commercial strategy to increase and compete its market share at

targeting mainstream car market. Consumers may be able to transfer of the

discounts easily and also even ask for free sample. Companies will be rough

more strongly touching each other to achieve the sale and keep up

customer from changing to another store or supplier. So the Marketing

should play a violent role in coming up with promotionally campaigns to

establish the customer loyalty. Skoda has introduced latest promotional

campaign to prevent that situation. Their main messages for the campaign

have focused on the `happy' customer appeal and experience at an

emotionally than at a practical level. What they have included as campaign

is television advertising. It was been showed that the car as `full of lovely

stuff' with using a happy music in background. In addition that using web

has focused the young generation to make their attraction of it. This has

been a good appeal to the young audience. At the same time Skoda has

introduced environmental friendly brands, so it is helpful overcome threats

EU environmental and legal regulations.

Importance Benefits of SWOT Analysis

The SWOT analysis is an instrument for companies to evaluate the business

and to improve strategies to continue competitive. It is focused

characteristics of the company and business sector and to establish the

results to assess the current status of the business, future predictions and

the financial balance. A SWOT analysis stimulates serious and definite

rational to improve strategic objectives and plans. Has SWOT analysis is

shown there value when it is applied to management, organizations

structure and marketing. The SWOT analysis value is to formulate a portrait

of the present competitive landscape and it is identified areas which can be

improved. SWOT analysis can provide companies with separate insight

regarding arranging strategies and tactics to gain an advantage.

Formulating a SWOT analysis is not difficult; it should be revisited on a

consistent basis under evaluate the strategy. Which is the best method of

admission industry's current position and future? It improves strategic

plans and goals by endorsing specific and critical thinking.

Other importance of the SWOT analysis is it use by non-profit organizations,

when decision making. Strategic planning can be divided into three basic

strategic environments; they are industry environment, macro environment

and internet environment. Industry environment is the one that is using to

recognize the nature of their competitors within their organization.

SWOT analyses plays as strategic tools that businesses employ when they

are important to make decisions of new strategies, also evaluating

company's external and internal environments. SWOT analyses study the

weaknesses, strengths, opportunities and threats of organization or

company. they can gain a superior image of their advantages.

a) Significant the Competition

The SWOT analyses show external threats of the company and one of the

main external threats company appearances is its competitors. By acting a

SWOT analysis, companies can assess who their competition is, and target

against them to configure strategies that will have a competitive advantage.

So companies are using SWOT analyses for identifying their competition,

those are placing themselves ahead of game and so it is able to well prepare

for the competition.

b) Decision-Making Tool

The SWOT analyses attend as beneficial decision-making tools. According to

the Manager's view strategists are conducting SWOT analyses for it is

needed in make decisions, because SWOT analysis gives experienced

information that prompt knowledgeable decisions. According to the

University of Kent says that since SWOT analyses deliver strategists with an

outline of a firm's weaknesses, strengths threats and opportunities,

decision-makers are able to take all of the this evidence into consideration.

c) Forecasting

The SWOT analyses are permitted companies to forecast. Forecasting

allows companies to make for things like economic breakdowns, worst-case

that scenarios or returns for the investments. SWOT analyses provide

benefits on forecasting efforts because those provide a range of facts which

might be difficult to threats, forecasted variables. Such as, can be

influenced a business's forecast.

Conclusion

SWOT analysis is a powerful tool to helpful emerges for matching

capabilities and firm's resources for a competitive environment. And also

the SWOT analysis is playing as an important planning tool for an

organization or business. When it is considered the SWOT analysis there are

more advantages and importance in competitive business world. Skoda is

also one of business that is used SWOT analysis and it reviewed their poor

sections in regarding other successive business. With these strategic

options Skoda improved as global brand which is offering by positively

responding external and internal issues to prevent losing business and

market share.