The world now a days surviving under serious situation which is impact business different sectors, and the consequences going to lead damages of the structures of many organizations. In light of the current situation, show how most of the business organizations can benefit of Porter’s Five Forces & SWOT analysis to avoid the consequences of the pandemic.

Given the current situation relating to COVID-19, most business organizations can profit from using Porter’s five forces and SWOT analysis in order to prevent the pandemic’s impact on their activities. Concerning Porter’s five forces framework, firstly, the analysis of the threat of substitutes that might be cheaper is of great importance with regard to the pandemic since falling real incomes of the population forces consumers to buy cheaper products. Given that, the economic crisis makes brand loyalty a less significant factor.

Secondly, the pandemic has highlighted the need for some products, such as masks, and reduced the attractiveness of others, such as travel services. In other words, product selection criteria change massively, which emphasizes the necessity of the analysis of customers’ bargaining power. Thirdly, the threat of new entrants, on the contrary, declines as barriers to entry, such as capital requirements and strict government policy, are high.

Fourthly, the investigation of competitive rivalry is also of great benefit. This assessment shows the number of competitors on the market at the moment. By implementing it, a company can realize that the competitive rivalry is so high that it is necessary to innovate in order to survive in the market. It is important to calculate such risks in advance as there may not be a second chance due to the lack of capital and unforeseen costs as a result of the pandemic. Fifthly, the bargaining power of suppliers, which is included in Porter’s analysis, might deeply influence a business organization.

In the wake of the pandemic, suppliers are more likely to establish their own rules, for example, setting a huge minimum purchase. Moreover, the closure of borders and the breaking of supply chains might result in the fact that they will release only a limited amount of goods due to a lack of raw materials. Thus, to avoid the pandemic’s consequences, commercial organizations should pay more attention to the factors of Porter’s analysis since COVID-19 make it necessary to calculate all the risks in advance.

In comparison with the analysis of Porter’s five forces, SWOT analysis is applicable for strategic planning not only for a long period but also in the short term. In other words, in the face of rapidly changing market conditions and economic shocks due to COVID-19, SWOT analysis can be considered crucial and preferable to Porter’s analysis. For example, the method can determine if a company has a short-term opportunity to offer delivery to its customers or to solve the virus crisis in some other way.

Moreover, this model takes into account external factors, which include opportunities and threats. According to this approach, COVID-19 might be viewed as a factor that can both hinder and contribute to the achievement of the company’s goals. Any change is a prerequisite for the emergence of opportunities for something that previously, under normal circumstances, did not attract attention. For example, due to transport restrictions, local goods can fill the niche of imported products. Because of the restriction on visiting entertainment and other public institutions, the demand for various online services will grow. Thus, SWOT analysis outlines new perspectives for business in a pandemic, such as an increase in local production and the development of network services.