The strength of the economies in China and India and their growing prowess in the Information Technology world should certainly be factored in to any strategic review that a company in IT might be doing. SWOT analysis is one of the standard strategic review techniques that companies employ – looking at strengths, weaknesses, opportunities and threats. So where does Asia fit in to that analysis?
For CAE, the flight simulator manufacturer, it would seem it clearly belongs in the Opportunity category. As the Montreal Gazette informs us today, CAE has dominated the Asian commercial simulator and flight training market for over 25 years. There is a massive surge in civil aviation in China and India but this is highlighting the shortage of trained pilots. China alone will need 12,000 pilots by 2010. CAE already has a joint flight-training centre in China with one of the top three airlines there and supplies simulators to other Chinese clients. The center has 13 full-flight simulators and will soon be turning out 4,000 pilots annually. A great opportunity indeed.
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