2. SWOT
AN INTEGRAL PART OF STRATEGIC
PLANNING – large scale/long term
PEST COMES FIRST
THEN THE SWOT
i.e. an analysis of its internal
strengths/weaknesses and the external
opportunities/threats facing it
6. EXTERNAL - THREATS
NEW MARKET ENTRANTS
INCREASED
COMPETITION
MORE PRESSURE FROM
EXTERNAL
STAKEHOLDERS
SUBSTITUTES
LOW MARKET GROWTH
DOWNTURN IN
ECONOMIC CYCLE
TECHNOLOGICAL
THREAT
ECON & POLITICAL
CHANGE
DEMOGRAPHIC &
SOCIAL CHANGE
NEW BARRIERS TO
TRADE - international
7. SWOT
KEEP IT BRIEF, BE REALISTIC, DON’T LIST
RELATE S & W TO KEY INDUSTRY
SUCCESS FACTORS
STATE S & W IN COMPETITIVE TERMS e.g.
better than competition
SPECIFIC STATEMENTS
ANALYSIS – distinguish between where firm is
now and where it wishes to be
DON’T ASSUME ITS CORRECT
9. COMPETITIVE STRATEGIES
1. HEAD ON AGAINST THE MARKET LEADER
e.g. attack where the leader is weak
2. MARKET SEGMENTATION
e.g. choose a segment where the leader has
weaker advertising
3. DIVERSIFICATION – into related or unrelated
markets
4. GUERRILLA i.e. to gain a short term profit
e.g. short term cut in price on small range of
products
10. INNOVATORY STRATEGIES
1. REWRITE THE RULES OF THE GAME
e.g. online music v traditional purchasing
2. TECHNOLOGICAL
e.g. Apple and innovation
3. HIGHER SERVICE LEVELS
e.g. personal service
4. CO-OPERATION
e.g. Sky and the Premier League
11. PORTER STRATEGIES
1.
2.
3.
COST LEADERSHIP – doesn’t necessarily
mean low price
DIFFERENTIATION – from competitors
products/services – via market segmentation
FOCUS – niche products – could be cost
focus or differentiation focus