SWOT Analysis comprises of factors affecting SWOT along with its benefits & limitations plus practical examples of Pepsi, Ray-Ban, Adidas, Dell company.

1. PRESENTED BY:
ADITI WALIA

2. The central purpose of SWOT Analysis is
to Identify the strategies that will create
a firm specific business model that will
best align, fit or match an
organizational resource &capabilities to
the demand of the environment in which
it operates. Strategic managers
compare & contrast the various
alternative possible strategies against
each other with respect to their ability
to achieve major goals & superior
profitability.

3. The comparison of Strengths, Weaknesses,
Opportunities & Threats is normally referred to as
SWOT Analysis.
•Strength: An inherent capacity of the org which it
can use to gain strategic advantage over its
competitors.
•Weakness: An inherent limitation or constraint of
the org that creates strategic disadvantage to it.
•Opportunity: A favourable condition in the org’s
environment which enables it to strengthen its
position.
•Threat: An unfavourable condition in the org’s
environment which causes a risk for, or damage to, the
org’s position.

5. STRENGTH
•A powerful strategy supported by competitively
valuable skills & experience in key areas.
•Ample financial resources to grow the business.
•Strong brand name, image/company reputation.
•Cost advantages
•Strong advertising & promotion.
•Superior skills in supply chain management.
•Ability to take advantage of economies of scale or
learning & experience curve effects.
•A widely recognized market leader & attractive
customer base.

6. WEAKNESS
•Subpar profitability; no cost control measures or
cost accounting practices.
•Plagued with internal operating problems.
•A product line that is too narrow in comparison to
that of its rivals.
•Lots of underutilized plant capabilities.
•Short financial resources.
•Not able to attract new customers.
•Weak brand image or reputation.
•Behind on product quality &/or R&D &/or
technological know how.

7. OPPORTUNITY
•Serving additional customer groups or expanding into new
geographic markets or product segments.
•Expanding the co. product line to meet a broader range of
customer needs.
•Using the Internet & e-commerce technologies to
dramatically cut cost &/or to pursue new sales growth
opportunities.
•Integrating forward or backward.
•Falling trade barriers in attractive foreign markets.
•Acquisition of rival firms or companies with attractive
technological expertise.
•Alliances & joint ventures that expand the firm’s market
coverage or boost its competitive capability.

8. THREAT
•Likely entry of potent new competitors.
•Loss of sales to substitute products.
•Slow down in market growth.
•Mounting competition from new internet start-
ups pursuing e-commerce strategies.
•Adverse shifts in foreign exchange rates.
•Growing bargaining powers of customers &
suppliers.
•Costly new regulatory requirements.
•Vulnerability to industry driving forces.
•Adverse demographic changes.

9. BENEFITS &
LIMITATIONS
OF

10. BENEFITS
❖ SWOT Analysis helps in setting of objectives
for strategic planning.
❖Provides framework for identifying &
analysing strengths, weaknesses, opportunities
& threats.
❖Provides an impetus to analyse a situation &
develop suitable strategies & tactics.
❖Basis for assessing core capabilities &
competencies.
❖Provides a stimulus to participation in a
group exercise.
❖Evidence for, and cultural key to change.

11. LIMITATIONS
❖May cause organisation to view the circumstances
as very simple due to which certain key strategic
contact may be overlooked.
❖Categorizing aspects as strengths, weakness,
opportunity & threat might be very subjective as
there is a great degree of uncertainty in market.
❖To be effective, SWOT needs to conducted
regularly. The pace of the change makes it difficult
to anticipate developments.
❖The data used in the analysis may be based on
assumptions that subsequently proved to be
unfounded ( good or bad ).
❖It lacks detailed structure, so key elements may
get missed.

12. SWOT
ANALYSIS OF
SOME
COMPANIES

13. STRENGTH
•Biggest PC maker in the World.
•They deal directly with the
customers with no use of a middle
men.
•They design the computer to the
customer’s specifications.
•They ship around one hundred &
forty thousand computers in a day.
WEAKNESS
•They build computers, not develop
them.
•They do not have unique technologies
to offer the market.
•They have weak relationships with
many computer retailers.
•Dealing with a large amount of
supplies from many different countries
can cause a large issue when products
are recalled.
OPPORTUNITY
•The introduction of new & enticing
products to the customers.
•Maintaining & expanding the one stop
shopping abilities are offered to their
customers.
•Broadening their scopes in India,
Europe & China.
•Continuing the market on the internet
to gain larger market bases.
THREAT
•Fluctuations in the currency
markets can make global business
operations more open to certain
losses in areas of the supply chain.
•Tariff trade barriers affecting their
positions in multiple countries.
•Increasingly lower prices for
products amount of their
competitors.

14. STRENGTH
•Long standing & well established
brand.
•Appeal to many generations
•High quality & durable.
•Provides numerous styles & color
options.
WEAKNESS
•Costly product
•Exclusivity of distribution channels.
OPPORTUNITY
•Raise awareness about the
importance of the protective lenses.
•Chance for brand extension &
expansion.
•Campaign such as Never Hide &
Define Yourself.
THREAT
•In hard economic times, people buy
less designer products.
•Many stores sell cheaper versions of
Ray-Ban inspired sunglasses.
•Consumers brand loyalty to other
sunglasses brand.

15. STRENGTH
•Worldwide presence in 200
countries.
•Long list of product line such as
football, running, basketball, etc.
•Sponsorship to various sports &
events like Olympics, Streetball,
etc.
•Largest market share in Europe.
WEAKNESS
•Limited exposure to U.S. market.
•Poor customer service.
•Limited budget allocated to
advertisement.
•Few influential athletes in Brand
Portfolio.
OPPORTUNITY
•Tie up with local market player to
boost the sale volume.
•Has a global opportunity to
expand international market :
Retail outlet & e-commerce.
•Positive & increasing market
trends can increase through the
effective advertising ( for
technology driven products ).
THREAT
•Adidas biggest competitor
NIKE has a greater market share
& having a big budget in
marketing activity.
•Amount of competitors
increasing day by day such as
Reebok, CAT, GAP, New Balance.
•Global Economic crisis.

16. STRENGTH
•Enjoys a High-Profile Global
Presence.
•Aggressive marketing strategies.
•A broad portfolio of products.
•Owns the World’s second best
selling brand.
WEAKNESS
•Carbonates market is in
decline.
•They only target young
people.
OPPORTUNITY
•Growth in tea & Asian
beverages.
•Increased consumer concerns
in comparison to bottled water.
•Growth in the functional drinks
industry.
THREAT
•Obesity & health concerns.
•Increased marketing &
innovation by Coke.
•Restriction to only N.
America as target market.

17. CONCLUSION
Faced with a constantly changing
environment, each business needs to
develop a marketing information system to
track trends & developments, which can be
categorized ats an opportunity or a threat .
The company has to review its strength &
weakness in the background of the
environment’s opportunities & threats i.e.
an organization’s SWOT Analysis.