Transcript SWOT Analysis

SWOT Analysis
Presentation and Discussion
Charles Blankson, Ph.D., Department
of Marketing
SWOT Analysis
Strength
Weakness
Strength is something a company is
good at (has competitive advantage
in). It may be a characteristic that
gives it enhanced competitiveness.
Weakness is something a company lacks
or does poorly (in comparison to
competitors) or a situation/condition
that puts it at a disadvantage.
Opportunity
Threat
Opportunity is an external factor
that offers a company a profitable
growth/competitive advantage that
fits well with a company’s
capabilities.
Threat is an external factor that
can have negative effect on a
company’s profitability/market
standing or competitive advantage.
Charles Blankson, Ph.D., Department
of Marketing
Examples of Strengths
 A strategy supported by good skills and expertise in key
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areas.
A strong financial position; ample financial resources to
grow the business.
Strong brand name, image of company, reputation.
A widely recognized market leader and an attractive
customer base.
Ability to take advantage of economies of scale/scope or
learning and experience curve effects.
Proprietary technology/skills advantage, important
patents.
Charles Blankson, Ph.D., Department
of Marketing
Examples of Strengths contd.
 Cost advantages.
 Strong advertising/promotion.
 Product innovation skills.
 Proven skills in production/manufacturing.
 A reputation for good customer service.
 Well positioned company, better product quality
relative to competitors.
 Wide geographic coverage and distribution capabilities.
 Alliances/joint ventures with other companies.
 Skilled work force, harmonious work environment.
Charles Blankson, Ph.D., Department
of Marketing
Examples of Weaknesses
 No clear strategic direction.
 Obsolete facilities/equipment/processes.
 A weak balance sheet(poor financial
capabilities), debt burdened.
 Higher overall unit costs.
 Missing some key skills or competencies/lack of
management depth.
 Poor sales/profits/growth.
 Plagued with internal operating/manufacturing
problems.
Charles Blankson, Ph.D., Department
of Marketing
Examples of Weaknesses contd.
 Falling behind in R&D.
 Too narrow a product line.
 Weak brand image/position/reputation.
 Weaker dealer or distribution network.
 Poor marketing skills.
 Lots of underutilized plant capabilities.
 Poor product quality.
 Poor customer/market orientation.
Charles Blankson, Ph.D., Department
of Marketing
Examples of Opportunities
 Serving additional customer groups or
expanding into new geographic markets
or product segments.
 Expanding the company’s product line to
meet a broader range of customer needs.
 Integrating forward or backward.
 Falling trade barriers in attractive
foreign markets.
Charles Blankson, Ph.D., Department
of Marketing
Examples of Opportunities
contd.
 An identified gap/opening to take market share from
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competitors.
Ability to grow rapidly because of strong/increased
market demand.
Acquisition of rival companies.
Alliances or joint ventures that expand the company’s
market share and competitive advantages/capabilities.
Opening to exploit emerging technologies.
Market openings to extend the company’s brand name
or reputation to new geographic areas.
Charles Blankson, Ph.D., Department
of Marketing
Examples of Threats
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Likely entry of potential new competitors.
Loss of sales/profits to substitute offerings.
Slowdowns in market growth.
Adverse shift in foreign exchange rates and trade
policies of foreign governments.
Costly new regulatory requirements.
Vulnerability to recession and business cycle.
Growing bargaining power of customers or suppliers.
A shift in customer needs and tastes away from the
main industry offerings.
Vulnerability to changes in the country’s macro
economic environment.
Charles Blankson, Ph.D., Department
of Marketing