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SWOT-Analysis-marketing Powerpoint nav.ppt
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- 2. • a SWOTanalysis is a tool that analyzes an organization and its environment. What is a “SWOT Analysis? • It is one of the first stages in the marketing plan process and helps marketers focus on key issues to: • Discover new opportunities • Manage and eliminate threats
- 3. • Ie: • Howdoes our company compare with the competition ? – (Zellers vs Walmart, Petro Canada vs Shell, Honda vs Mazda, etc) • a SWOT analysis can be used for a variety of purposes….be it company based or product based….it simply depends on what it is you want to analyze • How does our product compare with the competition ? – (Mac vs PC, Pepsi vs Coke, Ipod vs Zune, etc.)
- 4. • SWOT standsfor S trengths O pportunities W eaknesses Opportunities and threats are external factors T hreats Strengths and weaknesses are internal factors.
- 5. Strengths: • What isit you do better than your competition? Examples: A new or innovative product or service Location of your business Low prices High Quality • What is the business good at ?
- 6. Weaknesses: Examples: Location of yourbusiness • What does your competition do better than you? Undifferentiated products or services (i.e. in relation to your competitors) Poor quality goods or services • What is the business doing wrong? • What should you avoid?
- 7. Opportunities Areas where thecompany could take advantage of to improve their situation (trends, technology, etc.) Examples: A new international market A market vacated by an ineffective competitor Moving into new market segments that offer improved profits A developing market (ie – Internet)
- 8. Threats • Situations thatcould lead to lost business A competitor has a new, innovative product or service. New competitor in your home market. Examples: Price wars with competitors. • Anything that could feasibly harm your business
- 9. • By performinga SWOT Analysis, a company can see where they are positioned relative to their competition • A SWOT analysis may provide ideas for: • “caution” » it may force you to reconsider or completely stop an idea from continuing (competition is too fierce, product idea isn’t “different” enough, etc.) • “opportunities” » see and validate a “gap” and create a product / service to fill it)
- 10. • A great“analogy” for a SWOT analysis is that of the great “do I dive into the pool or not” scenario….. • You have several options:
- 11. 1. You canjust dive in …… (therefore don’t do your research or SWOT analysis and live with the results……)
- 12. 2. You canput your toe into the water to gather information and make a decision……… • it is warm so you jump in (therefore you do your research and base your decision to move forward or not based on your SWOT analysis of the pool) Ie – • It is cold so you decide to stay out and wait for the environment or water to heat up….and then reassess • It is too cold so you decide to stay out and cut your losses
- 13. • As aresult, performing a SWOT analysis is simply making the decision as to whether or not we’re going to jump into the pool or back off and do more research……..
- 14. • So, nowthat we know what a SWOT analysis is, let’s do one for a company…..
- 15. Strengths: • a powerfulretail brand - it has a reputation for value for money, convenience and a wide range of products all in one store. • Substantial growth in recent years (both within USA and internationally) • Economies of scale (purchasing, manufacturing, etc).
- 16. Weaknesses • Wal-Mart isthe World's largest grocery retailer and control of its empire could leave it weak in some areas due to the huge span of control. • Since Wal-Mart sell products across many sectors (such as clothing, food, or stationary), it may not have the flexibility of some of its more focused competitors. • The company is global, but has has a presence in relatively few countries Worldwide.
- 17. Opportunities • The storescurrently only trade in a relatively small number of countries. Therefore there are tremendous opportunities for future business in expanding consumer markets, such as China and India. • New locations and store types offer Wal-Mart opportunities to exploit market development.
- 18. Threats • Being numberone means that you are the target of competition, locally and globally. • Being a global retailer means that you are exposed to political problems in the countries that you operate in. • Stigma of using “cheap labour” in overseas “sweat shops” has hurt reputation
- 19. • now let’sdo one for a specific product….. Nintendo Wii
- 20. Strengths: • Nintendo brandrecognition (well known worldwide) • Wireless Wii Remote – can detect 3 D motion (only one of its kind) ….differentiates from competition (joystick / gamepads) • Cheaper than competition….$250 vs $399 (Xbox) and $500 (PlayStation 3)
- 21. Weaknesses • Slower processorvs competition • No hard drive • No DVD drive • Weaker graphics vs competition
- 22. Opportunities • Created new“niche” market / new video game experience….create new games and experience that can’t be matched • Less processing / No DVD capability = less costs = ability to sell for less than competition
- 23. Threats • Competition copycat“new” idea • Competition creates new technology that improves upon Wii “experience”
- 24. As a result,Nintendo’s SWOT analysis showed that their product was different and that there was evidence that the product should move forward • Although further research must be conducted as the product moves through the rest of the marketing mix, the SWOT analysis supports Nintendo’s competitive position both as a company and for this specific product
- 25. Conclusion: • All businesescan profit from performing a SWOT analysis • A SWOT analysis is a continual process….the business environment is continually changing • By understanding your situation, you can proactively make business decisions for both the present and future to ensure success
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