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Swat Analysis of Software Company

In: Computers and Technology

Submitted By myintthein
Words 4799
Pages 20
A SWOT Analysis view of the software development industry

Georgios Kormaris
Department of Information and Computing Sciences,
Utrecht University, Utrecht, The Netherlands gkormari@cs.uu.nl WWW home page: http://www.cs.uu.nl/

Introduction

I n the past twenty to thirty years many changes and developments have taken place in the software industry which started off during the 1960s mainly in the United States of America and experienced a revolutionary boom since the 1980s, Steinmueller, (1995).

There are many different ways and methods of developing software and planning the strategy of a software development company, as we can derive from many recent research projects. Most of these projects are usually concerned with the way that software is developed and not with the way that the strategy of the company as a whole is planned, Cusumano, MacCormack, Kemerer, & Crandall, (2003). Another important factor is which techniques and methods are used to analyze company’s environment and how the strategy is formulated and implemented.

In this paper we analyze a popular method for strategic planning which has been mostly used for product portfolio planning and strategic planning on an abstract level, as stated in a research paper by Houben, Lenie, & Vanhoof, (1999). We will focus our interest in the software industry and base our research on the case study of the Austrian software industry as it is presented by Bernroider, (2002). Additionally, certain guidelines are going to be presented, in order to carry out a successful internal and external analysis for any software development company.

Combining these two types of analysis, certain criteria of a company’s core competences and main weaknesses are drawn. This method is called SWOT Analysis, which was developed by Albert Humphrey during the 1960s, as part of a research project for Stanford

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