SWOT Analysis:Developed nation (Poland)

SWOT Analysis:Developed nation (Poland)

Strengths

1. Intense research and development capabilities

The levels of research and development within Poland is relatively high. It makes it possible for organizations operating within the nation to be innovative in the introduction of new products (Szczygielski, Grabowski, Pamukcu, and Tandogan, 2017). The research and development capabilities enable organizations to introduce new products within the market quickly as it is clearly defined, and the dynamics of the market are well known. In the introduction of green technology, they can research waste reduction, recycling, and re-use. Therefore, creating sustainable development in energy-efficient and water-efficient nation.

2. Permit and license production

Poland organizations can undertake licensed production since similar technologies available in other places are typically available in other developed nations as well. The regulatory framework within Poland makes it possible for organizations to be provided with production licenses by others operating within different environments. In the country, they also have special permit and consent, that enables them to control the market quickly. The distribution of energy products needs special permits and licenses.

3. Sustainable production and consumption

Poland has a system that promotes economic growth from environmental degradation. The country is increasing resource efficiency by investing in green technology. The application of the cycle thinking it helps the country to increase efficiency in production and consumption. It can be done achieved through distribution, marketing, and re-use of products. Good examples are wood and metal recycling.

Weaknesses

1. The large scale of fixed investment

The attractiveness of Poland to investors means that the states have a high volume of fixed investment. It becomes a weakness for organizations looking to begin operations within these nations as the investments made by other organizations mean that there is minimal room for more investment. Entry into the market might be difficult even when the other structures seem favorable, and relatively high stakes are made. The market having the same products makes it hard to gain maximum profit.

2. Quality management deficiency

The availability of standards that are utilized in the determination of quality means that the achievement of these standards can result in the development of a product that is fit for the market. Following all of the Poland industry-wide rules can easily make an organization to relax on the measures of assessing quality in their production when looking to improve the product quality to adjust to changes in the market. That puts the market at risk of getting substandard products.

Opportunities

1. Entering new markets

Operating from Poland gives organizations a brand identity that is associated with advancement. ThiItmakes products that have been made in these nations easily acceptable within different markets. Many developed countries are exporters, and the companies can maximize out on this position to enter into new markets quickly through taking on operations within these nations. In Poland, the main exports, such as metal and metals products has been boosted because of the country’s image. Therefore, they end up having developed export partners like France, the United Kingdom, and Germany.

2. Structural reforms

Some reforms are continually being undertaken within Poland in terms of economic changes that provide opportunities for growth and development. Companies operating from these nations can maximize us on the structural reforms to enter into the market and introduce new products. There is market stability, which is provided by the constant reforms undertaken by governments. In Poland, there exist changes in the energy sector; they are investing more in green technology. That makes it easy to make deals with other nations that are at the forefront in the implementation of the green economy.

3. International aggregate demand

The demand for the final products and services delivered by an organization defines the aggregate demand. Due to the exporting culture of Poland, the economy in these states has an aggregate demand which goes beyond the economic boundary of the nation and organization that is readily able to access the international markets. It has enabled the country to promote its external ties with other countries. Hence, promoting the production of products in the country for exportation.

Threats

1. Strong competition

Poland has many organizations that undertake operations. As a result of a market that’s ready for the products. With the people within these nations having high purchasing power due to high levels of income, many organizations are seeking to capitalize on the purchasing power to sell their products within these nations. The level of competition here remains relatively high for any operator. That mostly affects the machinery industry since the organization comes to seek to capitalize on the purchasing power of the people through selling top demand machines.

2. Global financial crisis

Another critical threat Poland faces is the global financial crisis. In the event of a financial emergency happening, the nation becomes the most affected as these are mainly the large economies around the world. The implications of a global financial crisis could have devastating impacts on the purchasing power of the population in this nation. It can generally affect the purchasing power of goods by the people in the country. Hence, many production companies may end up not selling their products.

Developing nation (Panama)

Strengths

1. Low cost of labor

In Panama, high levels of unemployment and one of the key advantages to employers are that the cost of labor goes low. The individuals working within the organizations in the country are not paid as high as the developed world. Organizations operating in the market can be able to get aces to cheap labor, which reduces operational costs. That increases the production of goods in the country. Therefore, promoting the access of products in their market.

2. Supportive legislation

Panama seeking to move towards becoming developed, it has high levels of regulation for the markets to ensure the organizations that are undertaking operation there are supported. It creates a supportive framework that would enable the success of any services which an organization seeks to make. It helps in the production of sustainable goods in the economy. In turn, it promotes economic growth through durable products. Panama also has a very stable government that helps in making crucial legislation.

3. Dynamics for export

Panama’s main focus is in creating preferential trade agreements with the developing nations as they are considered to be the emerging markets for their products. These trade agreements facilitate the export experience and, in the process, create an aspect for the survival of the global business. Organizations are, therefore, able to achieve quick development and subsequent success in the market. It efficiently promotes the sale of goods among the countries. Hence it eventually encourages the flow of goods and increases production.

Weaknesses

1. Low levels of innovation

In Panama, there is a low level of change due to the technological limitations experienced within this nation. With minimal levels of product research being conducted in these regions, the levels of innovation remain relatively low. Product development within these nations is mainly through imitation and counterfeit products that are heavily present in the market. It affects the sustainability of goods in the market since most of the production companies get loses due to high levels of counterfeit in Panama.

2. Poor industrial policy

Low levels of manufacturing characterize Panama, and because of this, the industries have not been established, and structures are still in the formation stages. Industrial policies within the nation are inadequate as they have not been developed to advanced levels. It becomes a limiting factor within the operational environment for an organization seeking to begin operations here.  Many of the manufacturing industries fail just immediately after their installation. Panama is immensely affected by bad policies leading to the weak generation of products into their market.

3. Low added value

Panama has consumers with low purchasing power as a result of the income levels within society. It means that organizations have to price their products and service at a relatively low level in seeking to satisfy consumers. The organization, therefore, has a minimal value which they gain from the products since the profits are small within the developing nations. It also leads to the small production of goods, which in turn affects the countries goods market,

Opportunities

1. Supply and market expansion

There are low levels of investment, and many businesses are not interested in selling their product within Panama as they fetch reduced prices. This creates an opportunity upon which organizations can maximize and gain market expansion for their products when they enter into the developing nation markets. Organizations can heavily invest in Panama by manufacturing products in the country or exporting their goods to Panama.

2. Increasing aggregate demand

Panama is considered to be emerging markets as there is a constantly growing demand for the various products available in the market (Abbas, Zubair, and Sarwar, 2018). The continuous increasing aggregate demand within the economic system provides an opportunity for growth and expansion of the organization and the reach that the products offer. In Panama, there exists a smooth flow of products to the targeted market.

Threats

1. Competing countries

Within any economic system, there is competition from other factors within the system. Panama competes with other developing countries in terms of advancement and access to specific markets. This competition presents a threat to the fact that the markets are limited, and all the nations seek to trade with the developed countries. That may lead to high production of goods and a lack of demand that may, in turn, lead to the collapse of the manufacturing sector. It is because the supply of goods becomes minimal, leading to a waste of assets.

2. External debt

Panama being a developing nation, it relies mostly on foreign loans for the production of goods (Hausmann, Espinoza,  and Santos, 2016). That is through the creation of manufacturing industries that propel its market. The inability to pay the loans leads to an increase in the debt margin. In the long run, the accumulation of debt may make it hard for them to access loans. It may affect the industrialization of the country, hence decreasing its growth in product productions. The markets may end up lacking enough goods to sustain the people.

References

Abbas, A., Zubair, A., and Sarwar, M. A. (2018). Post Mortem of Marketing; A Blend of Marketing and Medical Practices. Asia Pacific Journal of Emerging Markets, 2(2), 192.

Hausmann, R., Espinoza, L., and Santos, M. (2016). Shifting Gears: A Growth Diagnostic of Panama.

Szczygielski, K., Grabowski, W., Pamukcu, M. T., and Tandogan, V. S. (2017). Does government support for private innovation matter? Firm-level evidence from two catching-up countries. Research Policy, 46(1), 219-237.