Page 4: SWOT analysis
In creating strategies in any organisation, it is important to carry out a SWOT analysis - i.e. a detailed study of the internal strengths and weaknesses of an organisation, and the external opportunities and threats facing the organisation. LINK’s SWOT analysis revealed that key strengths included the facts that:
- LINK is a low cost/high quality processor
- it is a stable company - its key business activity serving as a cash cow
- it has a strong market position
- it has a high quality team of people working for it
- the owners are the customers
- LINK has the ability to switch high volumes.
Examples of internal weaknesses include the narrowness of the market in which it operates and a need to establish a new vision for the future. Threats facing the organisation included:
- the development of substitutes for cash
- the trend towards globalisation of markets
- the possible growth of competitors in the payment systems market.
At the same time a number of key opportunities were identified including:
- deeper growth; enabling additional ATM functions e.g. distributing tickets for concerts or theatre
- broader growth; using existing LINK skills to expand into other communication platforms e.g. mobile phones
- the rapid growth of e-commerce
- the growth of new types of payment
- the rapid development of electronic switching as a means of making payments
- geographic expansion into Europe and perhaps beyond.