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Company > Amgen: Business Model, SWOT Analysis, and Competitors 2023

Amgen: Business Model, SWOT Analysis, and Competitors 2023

Published: Jan 08, 2023

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    Amgen is a leading biotechnology company that specializes in developing innovative therapies for serious illnesses. This blog article will delve into an analysis of Amgen's business model, providing insights into its key strategies and revenue streams. Additionally, a SWOT analysis will be conducted to evaluate the company's strengths, weaknesses, opportunities, and threats. Furthermore, the article will explore Amgen's competitors in the biotech industry, shedding light on the challenges it faces and the potential for future growth.

    What You Will Learn:

    • Who owns Amgen, gaining insight into the ownership structure and key stakeholders of the company.
    • The mission statement of Amgen, understanding their core purpose and values as a biotechnology company.
    • How Amgen makes money, exploring the various revenue streams and business strategies employed by the company.
    • An explanation of Amgen's Business Model Canvas, providing a comprehensive overview of their key activities, resources, and partnerships.
    • The main competitors of Amgen, examining other pharmaceutical and biotech companies that operate in the same market.
    • An SWOT analysis of Amgen, evaluating their strengths, weaknesses, opportunities, and threats in the industry.

    Who owns Amgen?

    Shareholders of Amgen

    Amgen, a multinational biotechnology company, is owned by a diverse group of shareholders. These shareholders include institutional investors, individual investors, and company insiders. As of the latest available information, the ownership of Amgen is as follows:

    Institutional investors

    Institutional investors play a significant role in owning shares of Amgen. These investors include pension funds, mutual funds, and other financial institutions. Their ownership stake represents the collective investment decisions made by these entities on behalf of their clients or investors. Some well-known institutional investors with substantial holdings in Amgen include Vanguard Group, BlackRock, and State Street Corporation.

    Individual investors

    Individual investors also have a stake in Amgen through direct ownership of its shares. These individuals can be retail investors who purchase shares through brokerage accounts or other investment platforms. Additionally, high-net-worth individuals and wealthy families may directly invest in Amgen as part of their diversified investment portfolios.

    Company insiders

    Company insiders, such as executives, directors, and employees, also own shares of Amgen. These individuals often acquire shares through stock-based compensation plans or by purchasing shares on the open market. Insider ownership can align the interests of management with shareholders and demonstrate confidence in the company's future prospects.

    Ownership structure

    The ownership structure of Amgen is dynamic and subject to changes as investors buy or sell shares. Publicly traded companies like Amgen regularly disclose their ownership structure in regulatory filings, such as the Securities and Exchange Commission (SEC) filings. These filings provide transparency and allow interested parties to analyze the ownership distribution within the company.

    Understanding the ownership of Amgen is essential for investors and stakeholders as it provides insights into who has a vested interest in the company's performance and decision-making processes.

    What is the mission statement of Amgen?

    The Mission Statement of Amgen: Advancing Science to Serve Patients

    Amgen, a leading biotechnology company, is well-known for its commitment to serving patients. Its mission statement, "Advancing Science to Serve Patients," reflects the company's dedication to improving the lives of individuals through innovative scientific approaches.

    With a focus on the discovery, development, and delivery of pioneering medicines, Amgen aims to address some of the most challenging medical conditions. By utilizing cutting-edge technologies and collaborating with healthcare professionals, researchers, and patients, the company strives to find effective solutions for unmet medical needs.

    Amgen's mission statement emphasizes its goal to advance science as a means to serve patients. The company recognizes that scientific breakthroughs hold the key to unlocking medical advancements and improving patient outcomes. Through continuous investment in research and development, Amgen seeks to bring forth transformative therapies that can significantly impact the lives of patients worldwide.

    One of the ways Amgen achieves its mission is by fostering a culture of innovation and collaboration. By encouraging its employees to think creatively, take risks, and challenge the status quo, the company aims to drive scientific advancements that can make a meaningful difference. Additionally, Amgen actively seeks collaborations with external partners, including academic institutions, biotech companies, and patient advocacy groups, to leverage collective expertise and accelerate the development of innovative treatments.

    Furthermore, Amgen's mission statement underscores its commitment to patients. The company recognizes the importance of understanding patients' needs, experiences, and perspectives in order to develop therapies that truly address their unique challenges. By actively engaging with patients, caregivers, and patient advocacy organizations, Amgen ensures that its scientific advancements align with the real-world needs of those who depend on their products.

    In summary, Amgen's mission statement, "Advancing Science to Serve Patients," encapsulates the company's dedication to leveraging scientific advancements to improve patient care and address unmet medical needs. By fostering a culture of innovation, collaborating with external partners, and actively engaging with patients, Amgen strives to bring forth transformative therapies that have a positive impact on the lives of individuals worldwide.

    How does Amgen make money?

    Overview of Amgen's revenue streams

    Amgen, a global biotechnology company, generates revenue through various sources. Let's dive into the primary ways Amgen makes money:

    Sales of innovative pharmaceutical products

    One of the main revenue streams for Amgen is the sale of its innovative pharmaceutical products. The company develops and manufactures a wide range of biologic medicines used to treat serious illnesses, including cancer, cardiovascular diseases, and autoimmune disorders. These products, which often require complex manufacturing processes and significant research and development investments, are sold to hospitals, healthcare providers, and pharmacies worldwide. Amgen's portfolio includes well-known drugs such as Enbrel, Neulasta, and Prolia, which have proven to be effective in improving patients' quality of life.

    Collaboration and licensing agreements

    Amgen also generates revenue through collaboration and licensing agreements with other pharmaceutical companies. By partnering with these companies, Amgen can leverage its expertise and intellectual property to further develop and commercialize new drugs. These agreements often involve upfront payments, milestone payments tied to the achievement of specific development or regulatory milestones, and royalties on product sales. Strategic collaborations enable Amgen to expand its product pipeline and reach new markets while sharing both the risks and potential rewards with its partners.

    Biosimilar products

    In recent years, Amgen has entered the biosimilars market, which involves developing and marketing products that are highly similar to existing biologic medicines. Biosimilars offer a more affordable alternative to expensive branded biologics, providing patients with greater access to life-saving treatments. Amgen's biosimilar portfolio includes products such as Amjevita, a biosimilar to Humira, and Mvasi, a biosimilar to Avastin. As biosimilars gain regulatory approval and market acceptance, they contribute to Amgen's revenue growth.

    Geographic diversification

    Amgen operates globally and generates revenue from various geographic regions. The company has a strong presence in the United States, where it generates a significant portion of its revenue. Additionally, Amgen has expanded its operations to other key markets, including Europe, Japan, and emerging markets. This geographic diversification allows Amgen to tap into different healthcare systems, regulatory environments, and patient populations, thereby reducing its exposure to any single market and enhancing its revenue stability.

    Conclusion

    Through the sales of its innovative pharmaceutical products, collaboration and licensing agreements, biosimilar products, and geographic diversification, Amgen has built a robust revenue-generating ecosystem. By focusing on developing breakthrough therapies and expanding its presence globally, Amgen continues to drive innovation and improve the lives of patients around the world while delivering value to its shareholders.

    Amgen Business Model Canvas Explained

    What is the Business Model Canvas?

    The Business Model Canvas is a strategic management tool that allows companies to visualize, analyze, and design their business models. It provides a holistic view of how a company creates, delivers, and captures value. Developed by Alexander Osterwalder and Yves Pigneur, the Business Model Canvas is widely used by organizations around the world to describe, understand, and innovate their business models.

    Introduction to Amgen

    Amgen is a multinational biopharmaceutical company that focuses on the development, manufacturing, and marketing of innovative therapies for patients suffering from serious illnesses. Founded in 1980, Amgen has become one of the largest biotech companies globally, with a strong presence in over 100 countries.

    Key Components of Amgen's Business Model Canvas

    Customer Segments

    Amgen primarily targets patients and healthcare professionals as its customer segments. The company develops therapies for various diseases, including cancer, cardiovascular conditions, and inflammatory disorders. Amgen's customer segments also include hospitals, clinics, and research institutions that use its products for patient treatment and clinical trials.

    Value Proposition

    Amgen's value proposition lies in its ability to provide breakthrough therapies that improve patient outcomes and quality of life. The company focuses on developing innovative biologic medicines, which are produced from living organisms and have revolutionized the field of medicine. By offering effective and safe treatments for serious illnesses, Amgen aims to address unmet medical needs and make a positive impact on patients' lives.

    Channels

    Amgen utilizes multiple channels to reach its customers. These include direct sales representatives who engage with healthcare professionals and hospitals, online platforms for information dissemination, partnerships with distributors and wholesalers, and collaborations with research institutions for clinical trials. By employing a diversified channel strategy, Amgen ensures wide accessibility and availability of its therapies to patients globally.

    Customer Relationships

    Building strong customer relationships is crucial for Amgen's success. The company invests in various initiatives to establish trust and credibility with healthcare professionals and patients. These efforts include providing educational resources, organizing medical conferences and symposiums, and offering patient support programs. By fostering long-term relationships with customers, Amgen aims to become their trusted partner in delivering high-quality healthcare solutions.

    Revenue Streams

    Amgen generates revenue through the sale of its biologic medicines. These revenue streams come from both direct sales to healthcare providers and sales through distributors. The company also earns royalties and licensing fees from partnerships and collaborations with other pharmaceutical companies. By diversifying its revenue streams, Amgen ensures financial stability and sustainability.

    Key Activities

    Amgen's key activities revolve around research and development (R&D) to discover and develop innovative therapies. The company invests heavily in R&D to advance scientific knowledge, conduct clinical trials, and obtain regulatory approvals for new drugs. Manufacturing and supply chain management are also essential activities for Amgen to ensure the availability and quality of its products.

    Key Resources

    Amgen's key resources include its scientific expertise, research facilities, manufacturing capabilities, intellectual property, and a highly skilled workforce. The company's ability to attract and retain talented scientists and researchers is critical for its innovation and product development efforts. Amgen also relies on strategic partnerships and collaborations to access additional resources and expertise.

    Key Partnerships

    Partnerships play a vital role in Amgen's business model. The company collaborates with academic institutions, research organizations, and other biopharmaceutical companies to leverage complementary capabilities and accelerate the development of new therapies. Additionally, Amgen partners with healthcare providers and patient advocacy groups to gain insights into patient needs and ensure effective distribution and usage of its products.

    Cost Structure

    Amgen's cost structure is primarily driven by research and development expenses, which account for a significant portion of its budget. The company also incurs costs related to manufacturing, marketing, sales, and distribution of its products. Additionally, Amgen invests in regulatory compliance, quality assurance, and ongoing clinical trials. Managing these costs while ensuring high-quality products is essential for Amgen's financial performance.

    Conclusion

    The Business Model Canvas provides a comprehensive framework to understand and analyze Amgen's business model. By examining the key components, such as customer segments, value proposition, channels, and revenue streams, it becomes clear how Amgen creates and delivers value to its stakeholders. Understanding this canvas allows us to appreciate the strategic choices and competitive advantages that have contributed to Amgen's success as a leading biopharmaceutical company.

    Which companies are the competitors of Amgen?

    Introduction

    Amgen, a renowned biotechnology company, operates in a highly competitive industry. Understanding its main competitors is crucial for investors, researchers, and healthcare professionals alike. In this section, we will explore some of the prominent companies that compete with Amgen in various aspects of the biotech sector.

    1. Johnson & Johnson (J&J)

    Johnson & Johnson, a multinational pharmaceutical and consumer goods conglomerate, poses significant competition to Amgen. J&J operates in various segments, including pharmaceuticals, medical devices, and consumer health. In the pharmaceutical sector, J&J has a robust pipeline of innovative drugs, actively competing with Amgen in areas such as oncology, immunology, and cardiovascular diseases.

    2. Roche

    Swiss-based Roche is a global pioneer in pharmaceuticals and diagnostics. With a strong presence in both the biopharmaceutical and diagnostics markets, Roche competes with Amgen across multiple therapeutic areas. In oncology, Roche's targeted therapies and immunotherapies, like Amgen's products, aim to revolutionize cancer treatment. Additionally, Roche's diagnostics division offers advanced diagnostic tools that assist in personalized medicine, an area where Amgen also seeks to make advancements.

    3. Novartis

    Novartis, a multinational pharmaceutical company, stands as another formidable competitor to Amgen. With a diverse portfolio spanning prescription medicines, generics, and biosimilars, Novartis competes with Amgen in multiple therapeutic areas, including oncology, immunology, and neuroscience. The company's research and development efforts focus on innovative treatments and technologies, illustrating their commitment to staying competitive in the biotech industry.

    4. Pfizer

    Pfizer, a well-established global pharmaceutical corporation, competes with Amgen in various therapeutic areas, including oncology, inflammation, and rare diseases. Pfizer's extensive portfolio of innovative drugs, along with its diverse pipeline, enables the company to compete aggressively in the biotech sector. Both Pfizer and Amgen strive to develop groundbreaking therapies that address unmet medical needs, fostering competition and driving advancements in healthcare.

    5. Gilead Sciences

    Gilead Sciences, a leading biopharmaceutical company, competes with Amgen primarily in the areas of antiviral and liver diseases. Gilead's research and development efforts have yielded groundbreaking treatments for HIV, hepatitis B and C, and various liver diseases. While Amgen focuses on multiple therapeutic areas, Gilead's specialization in infectious diseases makes it a significant competitor in this specific field.

    Conclusion

    Amgen faces robust competition from various companies in the biotech industry. Johnson & Johnson, Roche, Novartis, Pfizer, and Gilead Sciences are just a few of the notable competitors challenging Amgen's position in different therapeutic areas. As these companies continue to innovate and bring forth new treatments, the competition in the biotech sector intensifies, ultimately benefiting patients and pushing the boundaries of medical advancements.

    Amgen SWOT Analysis

    Strengths

    1. Strong portfolio of innovative and differentiated products: Amgen has a diverse range of products in its portfolio, including biologic medicines for treating serious illnesses such as cancer, cardiovascular diseases, and bone disorders. The company's commitment to research and development has led to the development of several breakthrough drugs, establishing Amgen as a leader in the biopharmaceutical industry.

    2. Extensive global presence: Amgen operates in more than 100 countries worldwide, allowing the company to reach a broad customer base and generate significant revenue from different geographic regions. This global presence also provides Amgen with access to various markets and enables it to adapt to changes in regional healthcare policies and regulations.

    3. Robust financial performance: Amgen has consistently delivered strong financial results, with steady revenue growth and healthy profit margins. The company's financial stability and strong cash flow position it well for future investments in research and development, acquisitions, and expansion into new markets.

    Weaknesses

    1. Dependence on a few key products: Despite having a diversified product portfolio, Amgen heavily relies on a few key products for a significant portion of its revenue. This concentration of revenue exposes the company to risks such as patent expirations, generic competition, and unforeseen adverse events that could impact the sales of these products.

    2. Limited pipeline of new products: While Amgen has a history of successful product launches, its pipeline of potential new products is relatively small compared to some of its competitors. This limited pipeline may hinder the company's ability to sustain long-term growth and maintain its competitive edge in the rapidly evolving biopharmaceutical industry.

    3. Pricing pressure and healthcare reforms: The biopharmaceutical industry faces ongoing challenges regarding pricing pressure from governments, payers, and public opinion. Amgen, like other companies in the industry, must navigate pricing negotiations and adapt to changes in healthcare policies and regulations, which could impact its profitability and market access.

    Opportunities

    1. Expanding into emerging markets: Amgen has the opportunity to expand its presence in emerging markets, where there is a growing demand for advanced healthcare solutions. By tailoring its products and pricing strategies to these markets, Amgen can tap into new revenue streams and reach a larger population in need of its innovative therapies.

    2. Strategic collaborations and partnerships: Collaborations with other biopharmaceutical companies, academic institutions, and research organizations can provide Amgen access to new technologies, expertise, and research capabilities. Strategic partnerships can accelerate the development of new products and enhance Amgen's competitive position in the market.

    3. Advancements in biotechnology and personalized medicine: Rapid advancements in biotechnology, genomics, and personalized medicine present opportunities for Amgen to develop targeted therapies that offer improved patient outcomes and reduced side effects. By leveraging these advancements, Amgen can enhance its product offerings and capture a larger share of the market.

    Threats

    1. Intense competition: The biopharmaceutical industry is highly competitive, with numerous companies vying for market share. Amgen faces competition from both established players and emerging biotech companies, which may develop competing products or technologies that could erode Amgen's market position.

    2. Regulatory and legal challenges: The biopharmaceutical industry is subject to strict regulations and legal challenges, including patent disputes, product liability claims, and regulatory hurdles for drug approvals. These challenges can result in delays, increased costs, and reputational damage for Amgen.

    3. Reimbursement pressures: As healthcare costs continue to rise, payers and governments are increasingly focused on controlling spending on pharmaceutical products. Reimbursement pressures, including pricing negotiations, formulary restrictions, and cost-effectiveness evaluations, pose a threat to Amgen's pricing power and profitability.

    Key Takeaways

    • Amgen is owned by a diverse group of shareholders, including institutional investors, individual shareholders, and mutual funds.
    • The mission statement of Amgen is to serve patients by developing innovative biotechnology medicines to treat serious illnesses.
    • Amgen generates its revenue primarily through the sale of its biotechnology medicines, which are used to treat a wide range of diseases and conditions.
    • The Amgen Business Model Canvas can be explained by looking at its key activities, resources, partnerships, and customer segments, all of which contribute to its overall success.
    • Some of the main competitors of Amgen in the biotechnology industry include companies like Roche, Novartis, Pfizer, and Johnson & Johnson.
    • In terms of SWOT analysis, Amgen's strengths lie in its strong product portfolio and research capabilities, while its weaknesses include its dependence on a few key products. Opportunities for Amgen include expansion into emerging markets, while threats include increasing competition and regulatory challenges.

    Conclusion

    In conclusion, Amgen is a biopharmaceutical company that has made significant contributions to the field of medicine. As for ownership, Amgen is a publicly traded company, meaning it is owned by shareholders who hold its stock.

    The mission statement of Amgen is to serve patients by transforming the promise of science and biotechnology into therapies that have the power to restore health or save lives. This mission is reflected in their commitment to innovative research and development, as well as their dedication to providing access to their life-saving medications.

    Amgen makes money through various revenue streams. Their primary source of income comes from the sale of their biologic medicines, which are developed using advanced biotechnology processes. These medicines are used to treat a wide range of diseases, including cancer, cardiovascular diseases, and autoimmune disorders. Additionally, Amgen generates revenue through collaborations and partnerships with other companies, as well as licensing agreements for their intellectual property.

    Analyzing Amgen's business model using the Business Model Canvas, we can see that they create value by delivering high-quality biologic medicines to patients. They achieve this by investing heavily in research and development to discover and develop breakthrough therapies. They also focus on building strong relationships with healthcare providers, payers, and patients to ensure access to their medicines.

    In terms of competition, Amgen faces several key players in the biopharmaceutical industry. Companies such as Pfizer, Roche, Novartis, and Johnson & Johnson are among its closest competitors. These companies also invest heavily in research and development and have a strong presence in the market. However, Amgen's strong portfolio of innovative therapies and its focus on delivering high-quality products give it a competitive advantage in the industry.

    Finally, conducting a SWOT analysis on Amgen reveals its strengths, weaknesses, opportunities, and threats. Amgen's strengths lie in its strong research capabilities, extensive product portfolio, and global presence. However, weaknesses such as dependence on a few key products and potential regulatory challenges exist. Opportunities for Amgen include expanding into emerging markets and developing new therapeutic areas. On the other hand, threats such as competition, pricing pressures, and potential patent expirations pose challenges to the company.

    Overall, Amgen's dedication to scientific innovation, commitment to patients, and strategic business approach have positioned it as a leading biopharmaceutical company in the industry. With a strong mission, diverse revenue streams, and a focus on delivering value, Amgen continues to make significant contributions to the field of medicine.

    FAQs

    What are the strengths of Amgen?

    Some of the strengths of Amgen include:

    1. Scientific expertise: Amgen has a strong focus on research and development, with a deep pool of scientific knowledge and expertise. This allows them to develop innovative and cutting-edge biotechnology products.

    2. Strong product portfolio: Amgen has a diverse and robust product portfolio that includes a range of biologic medicines for various therapeutic areas such as oncology, cardiovascular diseases, and bone health. This wide range of products helps them cater to different patient needs and ensures revenue stability.

    3. Global presence: Amgen operates in several countries worldwide, giving them a global footprint and access to a wide customer base. This allows them to reach patients in various markets and expand their market share.

    4. Strong brand recognition: Amgen is a well-known and respected brand in the biotechnology industry. Their commitment to scientific excellence and patient well-being has helped establish their brand as a trusted provider of innovative therapies.

    5. Strong financial performance: Amgen has consistently delivered strong financial results over the years. Their solid financial position allows them to invest in research and development, expand their product portfolio, and pursue strategic acquisitions.

    6. Collaborative partnerships: Amgen has a history of forming strategic partnerships and collaborations with other biotech companies, academic institutions, and research organizations. These partnerships help leverage each other's strengths and resources, leading to the development of new therapies and expanding their reach.

    7. Commitment to sustainability: Amgen is committed to sustainability and corporate social responsibility. They strive to minimize their environmental impact, support communities, and promote access to their therapies for patients in need. This commitment enhances their reputation and strengthens their relationships with stakeholders.

    What is SWOT analysis for healthcare companies?

    SWOT analysis is a strategic planning tool used to evaluate the strengths, weaknesses, opportunities, and threats of an organization. When applied to healthcare companies, SWOT analysis helps in assessing their internal and external factors that can impact their operations and overall performance. Here is how SWOT analysis can be applied to healthcare companies:

    1. Strengths: This involves identifying the internal factors that give a healthcare company a competitive advantage. It may include aspects such as a strong brand reputation, specialized medical services, advanced technology, highly skilled staff, strong financial position, etc.

    2. Weaknesses: This involves identifying the internal factors that put a healthcare company at a disadvantage. It may include areas where the company lacks resources, expertise, or infrastructure, inefficient processes, low patient satisfaction, limited service offerings, etc.

    3. Opportunities: This involves identifying the external factors that could provide growth or improvement opportunities for the healthcare company. It may include emerging healthcare trends, new market segments, technological advancements, changes in government regulations, partnerships or collaborations, etc.

    4. Threats: This involves identifying the external factors that could potentially harm the healthcare company's performance or sustainability. It may include competition from other healthcare providers, changing patient preferences, regulatory challenges, economic downturns, emerging diseases or pandemics, increasing costs, etc.

    By conducting a SWOT analysis, healthcare companies can gain insights into their current position, identify areas for improvement, capitalize on opportunities, and proactively mitigate threats. It helps in developing strategic plans, making informed decisions, and staying competitive in the healthcare industry.

    How can I find a SWOT analysis on a company?

    There are several ways to find a SWOT analysis on a company:

    1. Company's website: Start by visiting the company's official website. Many companies include SWOT analysis in their annual reports, investor presentations, or corporate social responsibility reports. Look for sections like "About Us," "Investor Relations," or "Corporate Governance" to find relevant information.

    2. Search engines: Use search engines like Google, Bing, or Yahoo and search for the company name followed by "SWOT analysis." This will help you find specific articles, reports, or websites that provide SWOT analysis on the company you are interested in.

    3. Business databases: Utilize business databases such as Business Source Complete, IBISWorld, or Factiva. These databases provide access to a wide range of industry reports, market research, and SWOT analyses on different companies. You may need access through a library or educational institution to use these databases.

    4. Financial websites: Websites like Bloomberg, Reuters, or Yahoo Finance often provide financial and business information on companies. They may also include SWOT analysis as part of their coverage. Look for sections like "Company Profile" or "Analysis" on these websites.

    5. Industry publications and magazines: Industry-specific publications or magazines often provide SWOT analysis on major companies within that industry. Check out publications relevant to the company's sector or industry, such as Forbes, Fortune, or industry-specific magazines, to find SWOT analysis.

    6. Market research reports: Market research firms like MarketResearch.com, Statista, or Euromonitor International publish reports that often include SWOT analysis on companies within specific industries. Some of these reports may require a subscription or purchase.

    Remember, SWOT analyses can be subjective, so it's always beneficial to refer to multiple sources to get a comprehensive understanding of a company's strengths, weaknesses, opportunities, and threats.

    What is the 4 piece in SWOT analysis?

    The 4 piece in SWOT analysis refers to the internal factors that are analyzed in the analysis. These include:

    1. Strengths: These are the positive attributes or resources that an organization possesses, which can give it a competitive advantage. Strengths may include things like a strong brand reputation, skilled employees, efficient processes, or superior technology.

    2. Weaknesses: These are the internal limitations or disadvantages that an organization has compared to its competitors. Weaknesses may include factors like outdated infrastructure, lack of skilled personnel, poor customer service, or limited financial resources.

    3. Opportunities: These are external factors or trends in the market that can create favorable conditions for an organization to grow or succeed. Opportunities may include emerging markets, changes in consumer preferences, new technology advancements, or favorable government policies.

    4. Threats: These are external factors or challenges that can pose risks or obstacles to an organization's success. Threats may include factors like intense competition, economic downturns, changing regulations, or disruptive technologies.

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