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Swot Analysis


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SWOT basically stands for Strength, Weakness, Opportunity and Threat

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Swot Analysis

  1. 2. SWOT basically stands for Strength, Weakness, Opportunity and Threat The analysis is meant to evaluate both the internal and external health of an organization in any industry The analysis enables any company to understand its competitive strength vis-à-vis the other entities in an industry
  2. 3. Strengths and Weaknesses are within the control of a company Opportunities and Threats are something that are beyond the scope of a company. The company does not have any control on these parameters The political, economic, social, competitive and techno-legal environment are some factors that can offer either opportunity or pose a threat for a company
  3. 4. SWOT is basically a two by two matrix INTERNAL EXTERNAL Strength Weakness Opportunity Threat
  4. 5. Applying SWOT Analysis – An EXAMPLE…
  5. 6. SWOT Analysis <ul><ul><li>Strengths- </li></ul></ul><ul><ul><li>S1- Market leader of the toy industry over the years. </li></ul></ul><ul><ul><li>S2- Global market. </li></ul></ul><ul><ul><li>S3- built its core business with the segment and demographic trend; in the case of Barbie they created dolls specifically for collectors. </li></ul></ul><ul><ul><li>S4- the company have had good relationship with its suppliers, </li></ul></ul><ul><ul><li>S5- the quality of the products remain excellent. </li></ul></ul><ul><ul><li>S6- The brand Barbie has diversified in to different types, from dolls, to accessories such as doll houses, to even movies, clothes and video games. </li></ul></ul><ul><ul><li>S7- The brand is very popular all over the world(except Islamic countries). </li></ul></ul><ul><ul><li>S8- The retail network of Barbie dolls is very good. </li></ul></ul><ul><ul><li>S9- the company employed the low cost sourcing strategy wherein the company closed manufacturing plants that have highs costs and shift to lower cost countries such as China. </li></ul></ul>
  6. 7. SWOT Analysis <ul><ul><ul><li>WEAKNESS </li></ul></ul></ul>W1- The top management are conservative and not assertive enough to respond to the rivalry brought by new brands in the market. W2- The old fashion style of Barbie does not suit to the changing trends and tastes of kids. W3- The Barbie dolls are less focused on trendy designs for different age groups. W4- In the development of products in the Barbie line is complicated and takes long period of time. W5- The financial planning is too conservative wherein the cash flow level is too high. W5- For more than 40 years in the business, the Barbie line still does not have its own retail stores. W6- The wrong management strategies of top manager recently have contributed to the decline of the market share and sales and the company is less sensitive to corporate intelligence.
  7. 8. SWOT Analysis Opportunities- 1- sales and market share of Barbie dolls have declined there is still vast opportunities fro the company in order to regain its dominance in the toy industry. 2- The opportunities include the expected growth of the European market will open opportunities for sales of Barbie dolls. 3- Most of the parents nowadays regardless of status and nation are willing to spend their money on toys for their children. 4-The status of the exchange rates of different monetary units is favourable to the company. 5-The purchasing power of countries from Western Europe is very strong.
  8. 9. SWOT Analysis Threats- 1- The high prices of crude oil increase the cost of materials. 2-The increased labor costs in China. 3-The dropped of sales in girl lines due to competition with other products. 4- Powerful retailers that have the ability to limit the products of Barbie thus lowering the sales and shares in the market. 5-The tastes of the consumers changed in dolls needs. 6- 6- The additional frequency of tight testing requirement from Europe is also a threat to the sales of Barbie dolls.