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					SWOT Analysis
Presentation and Discussion



         Charles Blankson, Ph.D., Department
                    of Marketing
SWOT Analysis

             Strength                                                   Weakness

  Strength is something a company is                          Weakness is something a company lacks
  good at (has competitive advantage                             or does poorly (in comparison to
   in). It may be a characteristic that                        competitors) or a situation/condition
                                                                  that puts it at a disadvantage.
   gives it enhanced competitiveness.




          Opportunity                                                      Threat

   Opportunity is an external factor                            Threat is an external factor that
  that offers a company a profitable                             can have negative effect on a
  growth/competitive advantage that                             company’s profitability/market
      fits well with a company’s                              standing or competitive advantage.
              capabilities.




                               Charles Blankson, Ph.D., Department
                                          of Marketing
Examples of Strengths
 A strategy supported by good skills and expertise in
    key areas.
   A strong financial position; ample financial resources
    to grow the business.
   Strong brand name, image of company, reputation.
   A widely recognized market leader and an attractive
    customer base.
   Ability to take advantage of economies of scale/scope or
    learning and experience curve effects.
   Proprietary technology/skills advantage, important
    patents.
                   Charles Blankson, Ph.D., Department
                              of Marketing
Examples of Strengths contd.
 Cost advantages.
 Strong advertising/promotion.
 Product innovation skills.
 Proven skills in production/manufacturing.
 A reputation for good customer service.
 Well positioned company, better product quality
  relative to competitors.
 Wide geographic coverage and distribution capabilities.
 Alliances/joint ventures with other companies.
 Skilled work force, harmonious work environment.

                  Charles Blankson, Ph.D., Department
                             of Marketing
Examples of Weaknesses
 No clear strategic direction.
 Obsolete facilities/equipment/processes.
 A weak balance sheet(poor financial
  capabilities), debt burdened.
 Higher overall unit costs.
 Missing some key skills or competencies/lack of
  management depth.
 Poor sales/profits/growth.
 Plagued with internal operating/manufacturing
  problems.
               Charles Blankson, Ph.D., Department
                          of Marketing
Examples of Weaknesses contd.
 Falling behind in R&D.
 Too narrow a product line.
 Weak brand image/position/reputation.
 Weaker dealer or distribution network.
 Poor marketing skills.
 Lots of underutilized plant capabilities.
 Poor product quality.
 Poor customer/market orientation.

              Charles Blankson, Ph.D., Department
                         of Marketing
Examples of Opportunities
 Serving additional customer groups or
  expanding into new geographic markets
  or product segments.
 Expanding the company’s product line to
  meet a broader range of customer needs.
 Integrating forward or backward.
 Falling trade barriers in attractive
  foreign markets.
             Charles Blankson, Ph.D., Department
                        of Marketing
Examples of Opportunities
contd.
 An identified gap/opening to take market share from
    competitors.
   Ability to grow rapidly because of strong/increased
    market demand.
   Acquisition of rival companies.
   Alliances or joint ventures that expand the company’s
    market share and competitive advantages/capabilities.
   Opening to exploit emerging technologies.
   Market openings to extend the company’s brand name
    or reputation to new geographic areas.


                   Charles Blankson, Ph.D., Department
                              of Marketing
Examples of Threats
   Likely entry of potential new competitors.
   Loss of sales/profits to substitute offerings.
   Slowdowns in market growth.
   Adverse shift in foreign exchange rates and trade
    policies of foreign governments.
   Costly new regulatory requirements.
   Vulnerability to recession and business cycle.
   Growing bargaining power of customers or suppliers.
   A shift in customer needs and tastes away from the
    main industry offerings.
   Vulnerability to changes in the country’s macro
    economic environment.
                  Charles Blankson, Ph.D., Department
                             of Marketing

				
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posted:9/11/2012
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