Hewden is a market leader in plant hire. One of Hewden’s main aims is to maintain its market leading position. It achieves this by analysing factors affecting the internal and external environment and using this data to plan how to improve efficiencies and processes. These plans are called strategies. A key method used by Hewden to audit its internal and external environment is a SWOT analysis. This looks at the internal strengths and weaknesses of the business and its external opportunities and threats.
By identifying the business’ strengths, Hewden is able to build on its core competencies to remain competitive. Any business needs to know where its weaknesses are so that it can improve and manage them. Opportunities occur in the marketplace outside the business. A business uses its strengths to take advantage of them. Threats occur from external factors outside of the business. Like any business, the actions of competitors create a threat to Hewden. For this reason it is vital that organisations are familiar with the actions of their competitors. For example, Microsoft was aware that when it released its new Xbox One console it would be going head-to-head with the release of Sony’s PlayStation 4. Identifying this potential threat allowed both companies to adjust their marketing mix according. (BBC, 15th November 2013)