SWOT Analysis and Competitive Advantage

1. Successful businesses regularly analyze their processes to ensure they’re operating as efficiently as possible and maintaining their competitive advantages. Although you can assess a company in many ways, a common technique is the SWOT analysis. In this assignment, you will practice using a SWOT analysis to better understand the factors involved in making business decisions that promote sustainable competitive advantage.
   Select and research a company from the 2019 Fortune 500 list that demonstrates a sustainable competitive advantage in the marketplace.
   Evaluate the selected company’s sustainable competitive advantage using the SWOT analysis technique.
   Write a 700- to 1,050-word modified SWOT analysis that includes the following:

   • An introduction with a detailed description of the company
   • A SWOT analysis diagram that includes strengths, weaknesses, opportunities, and threats
   • An evaluation of how specific internal factors (strengths and/or weaknesses) support and/or promote a competitive advantage; examples may include:
   • Financial, physical, or human resources
   • Access to natural resources, trademarks, patents, or copyrights
   • Current processes (employee programs or software systems)
   • An evaluation of how specific external factors (opportunities and/or threats) support and/or promote a competitive advantage; examples may include:
   • Market trends (new products or technology advancements)
   • Economic trends (local and/or global)
   • Demographics
   • Regulations (political, environmental, or economic)
   • Conclusion with an evaluation of how the company has retained its competitive advantage

   Include APA-formatted in-text citations and a reference page with at least 2 sources. Note: You may include your textbook as 1 of the sources.
   Note: You can view sample SWOT Analyses by visiting the University Library > Databases > B > Business Source Complete: SWOT Analyses.
   RUBRIC – Criteria1. Introduction and company description 20% of total grade2. SWOT analysis diagram 10% of total grade3. Internal factors evaluation 23% of total grade4. External factors evaluation 22% of total grade5. Conclusion and competitive advantage evaluation 20% of total grade6. Critical thinking 2% of total grade7. Mechanics and grammar 2% of total grade8. Information literacy (references) 1% of total gradeTOTAL POINTS = 100 points
   Submit your assignment.

Answer preview

CVS is amongst the many organizations in the United States that outsource their operations to China (Tabuchi, 2015). One of the major reasons for this is the low wages and salaries payable to Chinese workers. However, the labor reforms being instituted in the country pose a significant threat to this arrangement, considering the effect of such actions is to provide employees with greater protections and benefits, one of which is increasing their wages and salaries (Tabuchi, 2015). Due to this move, CVS Health’s operational costs will go up, an aspect that threatens its profitability.

Internal Factors Enhance CVS Health’s Competitive Advantage

As mentioned earlier of the strengths of CVS Health is its cash flows that give it access to vast resources (Tabuchi, 2015). Courtesy of this, the company and its subsidiaries have access to vast resources that they can use to market its products and improve the value offered to customers via its products and services. By doing this, CVS Health is able to enhance customer awareness of its products. When this happens, more people will feel inclined to purchase its products.

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SWOT Analysis and Competitive Advantage