Portfolio and S.W.O.T Analyses


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Portfolio and S.W.O.T Analyses

  1. 1. Portfolio Analysis and S.W.O.T Analysis Tools for Strategic Marketing Planning
  2. 2. <ul><li>Strategic business units (SBUs) share three characteristics: </li></ul><ul><ul><li>Single business or collection of businesses which can be managed separately </li></ul></ul><ul><ul><li>Has own set of competitors </li></ul></ul><ul><ul><li>Has manager responsible for strategic planning and profits </li></ul></ul>Strategic Business Units
  3. 3. The BCG Matrix The Boston Consulting Group’s Growth-Share Matrix
  4. 4. Market-Attractiveness Portfolio Strategies
  5. 5. SWOT Analysis <ul><li>“ A widely used framework for organizing and utilizing the pieces of data and information gained from the situation analysis…” </li></ul><ul><li>Encompasses both internal and external environments </li></ul><ul><li>One of the most effective tools in the analysis of environmental data and information </li></ul>
  6. 6. Directives for a Productive SWOT Analysis <ul><li>Separate Internal Issues from External Issues </li></ul><ul><li>Failure to understand the difference between internal and external issues is one of the major reasons for a poorly conducted SWOT analysis. </li></ul><ul><li>Socratic Advice: </li></ul><ul><ul><li>“ Know thyself” </li></ul></ul><ul><ul><li>“ Know thy customer” </li></ul></ul><ul><ul><li>“ Know thy competitors” </li></ul></ul><ul><ul><li>“ Know thy environment” </li></ul></ul>
  7. 7. The Elements of a SWOT Analysis <ul><li>Strengths and Weaknesses (Internal) </li></ul><ul><ul><li>Scale and Cost Economies </li></ul></ul><ul><ul><li>Size and Financial Resources </li></ul></ul><ul><ul><li>Intellectual, Legal, and Reputational Resources </li></ul></ul><ul><li>Opportunities and Threats (External) </li></ul><ul><ul><li>Trends in the Competitive Environment </li></ul></ul><ul><ul><li>Trends in the Technological Environment </li></ul></ul><ul><ul><li>Trends in the Sociocultural Environment </li></ul></ul>
  8. 8. <ul><li>SWOT Matrix: </li></ul><ul><ul><li>A four-cell array used to categorize information at the conclusion of a SWOT analysis. </li></ul></ul><ul><li>Should be based on customer perceptions, not the perceptions of the analyst. </li></ul><ul><li>Elements with the highest total ratings should have the greatest influence in marketing strategy. </li></ul><ul><li>Focus on competitive advantages by matching strengths with opportunities. </li></ul>Analysis of the SWOT Matrix
  9. 9. The SWOT Matrix
  10. 10. SWOT-Driven Strategic Planning <ul><li>Four issues the marketing manager must recognize: </li></ul><ul><ul><li>The assessment of strengths and weakness should look beyond products and resources to examine processes that meet customer needs. Offer solutions to customer problems instead of specific products. </li></ul></ul><ul><ul><li>Achieving goals and objectives depends on transforming </li></ul></ul><ul><ul><li>strengths into capabilities by matching them with opportunities. </li></ul></ul><ul><ul><li>Weaknesses can be converted into strengths with strategic </li></ul></ul><ul><ul><li>investment. Threats can be converted into opportunities with </li></ul></ul><ul><ul><li>the right resources. </li></ul></ul><ul><ul><li>Weaknesses that cannot be converted become limitations which must be minimized if obvious or meaningful to customers. </li></ul></ul>
  11. 11. Effectiveness of Analysis Tools
  12. 12. Directives for a Productive SWOT Analysis <ul><li>Stay Focused </li></ul><ul><ul><li>It is a mistake to complete one generic SWOT analysis for the entire organization or business unit. </li></ul></ul><ul><ul><li>When we say SWOT analysis, we mean SWOT analyses . </li></ul></ul>
  13. 13. Directives for a Productive SWOT Analysis <ul><li>Search Extensively for Competitors </li></ul><ul><ul><li>Information on competitors is an important aspect of a SWOT analysis. </li></ul></ul><ul><ul><li>Look for all four types of competition: </li></ul></ul><ul><ul><ul><li>Brand competitors </li></ul></ul></ul><ul><ul><ul><li>Product competitors </li></ul></ul></ul><ul><ul><ul><li>Generic competitors </li></ul></ul></ul><ul><ul><ul><li>Total budget competitors </li></ul></ul></ul>
  14. 14. Directives for a Productive SWOT Analysis <ul><li>Collaborate with other Functional Areas </li></ul><ul><ul><li>Information generated from the SWOT analysis can be shared across functional areas. </li></ul></ul><ul><ul><li>SWOT analysis can generate communication between managers that ordinarily would not communicate. </li></ul></ul><ul><ul><ul><li>Creates and environment for creativity and innovation. </li></ul></ul></ul><ul><li>Examine Issues from the Customers’ Perspective </li></ul><ul><li>Look for Causes, Not Characteristics </li></ul><ul><li>Separate Internal Issues from External Issues </li></ul>
  15. 15. Directives for a Productive SWOT Analysis <ul><li>Examine Issues from the Customers’ Perspective </li></ul><ul><ul><li>What do customers (and non-customers) believe about us as a company? </li></ul></ul><ul><ul><li>What do customers (and non-customers) think of our product quality, customer service, price, overall value, convenience, and promotional messages in comparison to our competitors? </li></ul></ul><ul><ul><li>What is the relative importance of these issues as customers see them? </li></ul></ul><ul><li>Taking the customers’ perspective is the cornerstone of a well done SWOT analysis. </li></ul>
  16. 16. Directives for a Productive SWOT Analysis <ul><li>Look for Causes, Not Characteristics </li></ul><ul><li>Causes for each issue in a SWOT analysis can often be found in the firm’s and competitors’ resources. </li></ul><ul><li>Major types of resources: </li></ul><ul><ul><li>Financial, intellectual, human, organizational, informational, legal, relational, reputational, etc </li></ul></ul>
  17. 17. Quantitative Assessment of Elements Within the SWOT Matrix