The concept of weaknesses in the business environment refers to the departments in which a company has deficiencies that prevent it from reaching the goals previously set. The term weaknesses is framed within the analysis DAFO, together with threats, strengths and opportunities, in order to find solutions to improve the activity of a business compared to competitors.
The objective of the weaknesses in this analysis is to detect the mistakes made, as well as the weak points of a company, with the purpose of improving the results from different strategies. For this it will be necessary to know the financial risks and limitations.
With a correct strategy and with the passage of time, what is pursued is to transform weaknesses into strengths.
Examples of business weaknesses
The first thing that must be done to detect the weaknesses of a company is to assess its scope or nature, since depending on the area to which the weaknesses are dedicated they can vary. For example, the weaknesses of a food company will be totally different from those that a recently created.
However, the weaknesses of an entity have a series of characteristics, among which are:
- Lack of financefor the activity.
- The items or services have very high prices.
- Business expectations are not met.
- Little differentiation in certain articles.
- Lack of training for workers.
- Delay in inventory compliance.
- Bad customer service.
- Product portfolio limited.
Therefore, a definition of weaknesses can be the points or aspects in which a company is inferior with respect to the competition or lacks them. In order to identify the weaknesses, a series of questions must be answered such as 'How can we improve?', 'What do customers perceive as weaknesses?' or 'Why don't you buy with us?'
How to do a SWOT analysis?