Performance of ITV1 Through the Firms Strategic Analysis Research Paper

Performance of ITV1 Through the Firms Strategic Analysis - Research Paper Example A SWOT analysis is commonly used for the evaluation of a firm’s strategic decisions, both in regard to its internal and external environment. In the context of the SWOT analysis, four different aspects of the organization’s environment are explored: ‘a) strengths, b) weaknesses, c) opportunities and d) threats’. The first two categories refer to the internal organizational environment, while the last two are related to the firm’s external environment (Griffin 2011, p.68). Similar approaches have been used in order to explain the necessity of SWOT analysis as a tool for the strategic analysis of modern firms. According to Griffin (2011), the SWOT analysis is a valuable theoretical framework at the level that it emphasizes on both the firm’s internal and external environment, offering a clear view of the firm’s capabilities and challenges. Moreover, Hill and Jones (2009) note that the SWOT analysis proposes specific actions that a firm sh ould take in order to improve its performance: ‘to identify opportunities, to evaluate the threats, to emphasize on its strengths and to eliminate, as possible, its weaknesses’. In regard to the value of SWOT analysis, Henry (2008) notes that the particular framework can be more effective ‘in the context of a competitive environment than in a general environment’ (Henry 2008, p.61). It is implied that in non-competitive business environments the SWOT analysis could not be easily developed since no market pressures would exist, a fact that would minimize the value of certain of the elements of SWOT analysis.