BBP 20502 CREATIVITY AND INNOVATION SWOT PREPARED BY : MUHAMMAD RAZIN BIN AHMAD AB110011
OBJECTIVEAt The End Of The Presentation. StudentShould Know.• HISTORY OF SWOT• RULES OR REQUIREMENTS• PROCESS AND DETAIL IMPLEMENTATION• EXAMPLE OF SWOT ANALYSIS• LIMITATIONS OF SWOT ANALYSIS
HISTORY ANALYTICAL METHOD WEAKNESSES THREATSSTRENGTHS OPPORTUNITIES• Stanford University’s Albert Humphrey led a research project in the 1960s-1970s• Humphrey lead a research project• Developed his Team Action Model (TAM)• SWOT was to have originated from his ‘Stakeholders Concept and SWOT Analysis.’
INVENTOR HUMPHREY DEVISED THE SWOT ANALYSIS TECHNIQUE WHILE WORKING FOR THE STANFORD RESEARCH INSTITUTEHIS WORK AT THE STANFORD RESEARCH INSTITUTE (NOW SRI INTERNATIONAL) PRODUCED A TEAM METHOD FOR PLANNING WHICH CREATED SOFT ANALYSIS
RULES OR REQUIREMENTS RULE 1 Carefully Specify Sphere Of Each Swot- analysis Rule 5 RULE 2Avoid vast and It Should Understand ambiguous Distinctions Between statements The SWOT Elements Rule 4 RULE 3 Strengths and weaknesses Be Impersonal And Use can be considered as those The Versatile Incoming only if they are perceived Information in this way by buyers
• What Are Your Advantages?• What Do You Do Well?• What Relevant Resources STRENGTHS Do You Have Access To?• What Do Other People See As Your Strengths? What Could You Improve? WEAKNESSES What Do You Do Badly? What Should You Avoid?
• Where are the good opportunities in front of you? • What are the interesting trends OPPORTUNITIES you are aware of?• What obstacles do you face?• What is your competition doing?• Are the required specifications for your job, THREATS products or services changing?• Is changing technology threatening your position?• Do you have bad debt or cash-flow problems?• Could any of your weaknesses seriously threaten your business?
EXAMPLE SWOT ANALYSIS (Samsung Galaxy S III vs Apple iPhone )
STRENGTHS:• We are able to give really good customer care, as the current small amount of work means we have plenty of time to devote to customers.WEAKNESSES:• Our company has little market presence or reputation.• We have a small staff, with a shallow skills base in many areas.OPPORTUNITIES:• Our business sector is expanding, with many future opportunities for success.• Local government wants to encourage local businesses.THREATS:• Developments in technology may change this market beyond our ability to adapt.• A small change in the focus of a large competitor might wipe out any market position we achieve.
Example 2 (NIKON VS CANON) TOOLS NIKON CANON (SWOT) Achieving the overwhelming No. 1 position Cultivating new technologies in in all core businesses and expanding related the field of industrial equipment. and peripheral businesses STRENGTH Have brand presence globally Have brand presence globally Image capture high priority Canon imaging systems is fast image In USA Nikon is the leading transfer to computers with its USB-2.0 digital camera brand digital interface Quality lens sharpness Have been in producing for a long time good quality products A need to establish global optimized production Have limited types of products. system Camera lens of Nikon easy to Camera lens of Canon easy infected to fungus scratch Lack of brand recognition – brand name only WEAKNESSES A need to establish global associated with imaging products. The brand name Canon is associated with cameras optimized production system only
TOOLS Nikon Canon (SWOT) focusing in developing its market in the Aim to achieve the No. 1 position in emerging markets the world in the current business Creating presence in emerging markets: domains Market attractive new products andOPPORTUNITIES India, China and Russia services Growing demand of digital cameras Growing emerging markets Working with mobile phone companies customers from all parts of the world to incorporate Nikon camera on mobile phones. Mobile phones with embedded cameras Tough global competition Fast changing technology Fast changing technology Counterfeit Nikon products Substitute products – such as THREAT Disaster management – Japan earthquake mobile embedded phones 2011
LIMITATIONS OF SWOT ANALYSIS PRICE INCREASE GOVERNMENT LEGISLATION INPUTS/ RAW MATERIALS Economic environmentINTERNAL LIMITATIONS MAY INCLUDE. Insufficient research and development facilities Faulty products due to poor quality control Poor industrial relations.
Advantages AdvantagesOne•ofitthe greatest advantages of SWOT analysis isare facing helps to summarize and clarify whatever opportunities and issues that ithelps to summarize and clarify whatever opportunities and a business or project.issues are facing a business or project. For this reason, a For this reason, a SWOT analysis is often advantageous and can play a key role in how a business sets its objectives and develops strategies for achievingSWOT goals. analysis is often advantageous and can play a key rolein how a business sets its objectives and develops strategiesfor achieving goals DisadvantagesDisadvantages a business should consider what degrees of strengths and • For example,In orderweaknesses it possesses be truly successful,competitors in order to a for a SWOT analysis to in comparison to it should extend beyondsimple list of strengths, weaknesses, opportunities A thorough SWOT analysis a determine how strong those strengths actually. and threats. For example,business should consider an opportunity or threats size and weaknesses it it is should also look at what degrees of strengths in order to see how possessesin comparison to competitors incompanys determine how and weaknesses. related with the order to strengths strong those strengthsactually are. A thorough SWOT analysis should also look at an opportunity orthreats size in order to see how it is related with the companys strengths andweaknesses.