Understanding SWOT analysis


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Understanding SWOT analysis

  1. 1. UNDERSTANDIN G SWOT ANALYSIS www.HelpWithAssignment.com
  2. 2. www.HelpWithAssignment.com What is SWOT Analysis? 2  Strengths – core competencies that confer an advantage when meeting target market needs.  Weaknesses – limitations faced in developing or implementing a marketing strategy.  Opportunities – favourable environmental conditions that could produce rewards for the firm if acted upon properly.  Threats – conditions or barriers that may prevent achievement of objectives.
  3. 3. www.HelpWithAssignment.com SWOT Analysis 3  Strengths and Weaknesses are ________factors that can be directly controlled.  Opportunities and Threats are ______factors that exist independently and are beyond the organisation’s control.
  4. 4. www.HelpWithAssignment.com 4 What A scan of the internal and external environment of a company. Environmental factors internal to a company are classified as strengths (S) or weaknesses (W) and those external to a company are classified as opportunities (O) or threats (T) Benefits Quickly and easily creates an understanding of a company’s underlying position and the driving forces in the external environment facing a company Application Used frequently to analyze companies and their environments to gauge competitive forces SWOT Analysis
  5. 5. www.HelpWithAssignment.com The 4-cell SWOT Matrix 5
  6. 6. www.HelpWithAssignment.com Building a SWOT Analysis Framework 6 • Identify a company’s strengths- a company’s strengths are its resources and capabilities that can be used as a basis for developing competitive advantage − Patents − Strong brand names − Good reputation among customers − Cost advantages − Access to resources and/or distribution − Strong market position • Identify a company’s weaknesses- the absence of certain strengths may be viewed as weakness or weaknesses can be the flip side of a strength − Little or no IP − Weak brand name − Poor reputation among customers or negative PR − High cost structure − Lack of access to resources and/or distribution − Weak market position • Identify opportunities for growth or improved profitability for a company − Unfulfilled customers needs − New technologies − Loosening of regulations − Removal of international trade barriers − Improving macroeconomic indicators • Identify threats facing a company − Shifts in consumer tastes − Emergence of substitute products − New regulations − Increased trade barriers − Takeover or acquisition of a the company • Ensure that internal and external analysis are consistent • Order the strengths, weaknesses, opportunities and threats by importance within each section • Create necessary supporting exhibits and material Complete the internal analysis Complete the external analysis Complete the matrix and analysis
  7. 7. www.HelpWithAssignment.com Additional Tips for Creating a SWOT Analysis Framework 7
  8. 8. www.HelpWithAssignment.com SWOT :Example:LAM Research 8
  9. 9. www.HelpWithAssignment.com SWOT Analysis Example - Citigroup 9
  10. 10. www.HelpWithAssignment.com SWOT Analysis Example – Unisys 10
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