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LMV SWOT Analysis

The document analyzes two strategic options for LVM Ltd. The first option is to borrow money to expand factory space in order to capitalize on opportunities in the Asian markets and increase production capacity. However, this leaves LVM vulnerable to threats from competitors. The second option is to borrow money to invest in developing new technology, which could help LVM challenge competitors and secure sales in emerging Asian markets. However, limited factory space may eventually prevent further progress and cause some businesses to fail.

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Diego Santos
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1K views2 pages

LMV SWOT Analysis

The document analyzes two strategic options for LVM Ltd. The first option is to borrow money to expand factory space in order to capitalize on opportunities in the Asian markets and increase production capacity. However, this leaves LVM vulnerable to threats from competitors. The second option is to borrow money to invest in developing new technology, which could help LVM challenge competitors and secure sales in emerging Asian markets. However, limited factory space may eventually prevent further progress and cause some businesses to fail.

Uploaded by

Diego Santos
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Diego Santos Year 12 Strategic analysis of LVM Ltd 1) Helpful Look into the Asian Markets to sell their

product Harmful The technology will not improve further because of the decision of taking this risk

Internal Origin

Strengths: Look into the Asian Markets to sell their product Good screen models and PCs sales No jobs lost

Weaknesses: The technology will not improve further because of the decision of taking this risk Most computers marketed in the European market, which is not as big as the Asians. Small factory space, which lead to turn down a big offer.

External Origin

Opportunities: Asian market barriers lifted

Threats: Borrow sustainability Interest Rate increase Inflation rising

2) There are two options which LVM could in this situation. One is to borrow money from a bank in order to expand their factory space and the second one is to borrow money from a bank an expended in development of new technology. The first option creates the chance for new business opportunities to occur with other companies. This was proven to be a disadvantage when dealing with this type of situations in the past. Also it will help with the capacity of production the company has. This also creates a chance of business with the Asian market but it is still threaten by the evolution of other companies technology. The second option creates more security to the company because by real easing a new improved product they can challenge the opposition a secure sales. If the company doesnt take this choice it takes the risk of letting another corporation develop new technology resulting on a drop in all products from this corporation. Also by doing this they can sell their new technology to the emerging markets of Asia and obtain a bigger profit. However, there will be a point where the company wont be able to progress because of its factory capacity, this may lead to key businesses failing.

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