SWOT Analysis

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Strengths Weaknesses

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Opportunities Threats
External

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Value Chain Analysis
Description

Generic Value Chain

Firm Infrastructure

Human Resource Management

Ma
Support
activities

rgin
Technology

Procurement

Customer

rgin
Primary Inbound Outbound Marketing & After sales
Operations

Ma
activities Logistics Logistics Sales Service
Entry/Exit Barriers
Description

Barriers to Entry Barriers to Exit

The threat of entry into an industry depends on a
combination of barriers to entry and the expected
incumbent reaction. Threat of entry is reduced if
there are high barriers or likely aggressive
incumbent retaliation.
High exit barriers can keep companies in an
industry despite low or negative returns. There can
be economic, strategic or emotional factors that
keep companies within a low performing industry.

There are 5 major barriers to exit:

There are 7 major barriers to entry:
1. Specialized assets: (e.g. Low liquidation values;
1. Economies of scale high transfer / conversion costs)
2. Product differentiation 2. High fixed costs of exit: (e.g. Labor agreements;
Spare part capability)
3. Capital requirements
3. Strategic inter-relationships (e.g. Image,
4. Switching costs
Financial markets, Shared facilities)
5. Access to distribution channels/property rights
4. Emotional barriers
6. Cost disadvantages independent of scale (e.g.
5. Government / social restrictions
Favorable location; Proprietary technology;
Access to raw materials)
7. Government policy