Strategic analysis using SWOT-AHP: a fibre cement sheet company application

Abstract

PurposePurpose of study: Indian fibre cement industry is at crossroads on account of the dropping margins attributed to the dynamic internal and external challenges faced by it. The ever-changing technology, the increasing availability of substitutes and changing demographic consumption profiles have questioned the survival of this industry. Internal and external factors affecting an organization provide inputs to the strategic decision-making. Diversity of factors and prioritization is a major challenge encountered for developing a strategy for the organization.Design/methodology/approachStrategic analysis in the paper proposes to rank important key variables through SWOT-AHP methodology affecting a fibre cement company. Computed priorities of SWOT factor could help in formation of management approach to key decisions facing the firm. It is a descriptive research design. The problem itself has multiple SWOT criteria that have been evaluated in three phases with the help of industry experts and AHP criteria.FindingsSWOT-AHP analysis has been a strategic fit for qualitative analysis of factors. The important ranked factors affecting the organization have been found to be brand name, capability of both the management and technical, quality of the product, and the efficient customer service and marketing reach/distribution.Research limitations/implicationsRanking of key SWOT factors found through AHP methodology will help the firm under study to develop and plan strategic alternatives to counter all challenges faced by them.Practical implicationsThe management of the firm under study shall be benefited in fine-tuning the overall strategy of the organization.Originality/valueThis paper proposes a hybrid SWOT-AHP strategic analysis first time in this sector. The affecting factors have been quantified and ranked to identify priority factors for the firm to focus.