4. Corporate’s internal SWOTAnalysis
• Acronym of Strengths, Weaknesses,
Threats and Opportunities
• Created by Albert Humphrey – leader of
Stanford Uni’s project research in the decade of
1970s
• Popular used in strategic business and project
planning.
• Analyze corporate's internal and external
environment and resources.
5. Internal v/s External
• Strengths and Weaknesses
o Are the corporate’s internal factors (HR, Capital, fixed assets,
technologies..)
o Mostly related to current situation
• Opportunities and threats
o Are the corporate’s external factors
o Related to the impacts from the external environments
(competitors, government policies, consumers’ behaviors,
partners and market)
6. Strengths
• Things you/your business is good at
• Provide a clear competitive advantage over rivals (competitors)
• Distinctive/core competencies and resources
• Should be protected and built upon.
• Some possible strengths: Market share, Technology, Economies
of scale, Leadership, Brand reputation and loyalty, High quality,
Financial resources, R&D..
7. To identify the strengths, ask…
• What advantages does your company have?
• What do you do better than anyone else?
• What unique or lowest-cost resources do you have access to?
• What do people in your market see as your strengths?
• What factors mean that you "get the sale"?
8. Weaknesses
• Things you/your business lacks or does poorly
• A source of competitive disadvantage à Places the business at a
disadvantage
• May hinder or constrain the business in achieving proposed
objectives
• Should seek ways to reduce or eliminate weaknesses before
exploiting further competition
• Some possible weaknesses: Low market share, undifferentiated,
outdated technology, poor quality, lack of innovation, a weak brand
name, High costs…
9. To identify the weaknesess, ask…
• What could you improve?
• What should you avoid?
• What are people in your market likely to see as weaknesses?
• What factors lose you sales?
10. Opportunities
• Things that create the chance to make greater profits or get better
business results.
• Arises when an organization may take benefits from the external
environment.
• Should be recognize the opportunities to improve the business
situation.
• Opportunities always coming along with the risks
• Possible opportunities: Technology, higher economic innovation
growth, new demand, new market, trade liberalization, market growth/
diversification, social or lifestyle change, government spending
programs.
11. To identify the opportunities, ask…
• Where are the good opportunities facing you?
• What are the interesting trends you are aware of?
12. Threats
• Things may harms or trouble you/your business
• Any external factors that may hinder or prevent you/ your business
from achieving proposed objectives or place the business at risks.
• Threats are not controllable
• Some possible threats: New market entrants , economic downturn,
change in consuming behaviors, the rise of low cost tastes or needs
production abroad, higher or unstable input sources/prices, new
regulations, competitive pressure
13. To identify the threats, ask…
• What obstacles do you face?
• What are your competitors doing?
• Are quality standards or specifications for your job, products or
services changing?
• Is changing technology threatening your position?
• Do you have bad debt or cash-flow problems?
• Could any of your weaknesses seriously threaten your business?
14. Why you need
SWOT analysis?
• Help decision maker and strategic planner understand clearly about corporate’s internal/external
situation
• Analyze the issues/problems which may lead to success/failure.
• Prevent costly mistakes
15. When you need SWOT analysis
• Changing business direction/perspective
• New product launching/new market entering
• Decision making
• Competition evaluation
• New business strategic planning
16. Carry your findings forward - Make sure that the SWOT analysis is used in
subsequent planning. Revisit your findings at suitable time intervals.
Create a workshop environment - Encourage an
atmosphere conducive to the free flow of information.
Allocate research & information gathering tasks - Background
preparation can be carried out in two stages – Exploratory and Detailed.
Information on Strengths & Weaknesses should focus on the internal
factors & information on Opportunities & Threats should focus on the
external factors.
Select contributors - Expert opinion
may be required for SWOT
Establish the objectives - Purpose of conducting a SWOT
may be wide / narrow, general / specific.
Evaluate listed ideas against Objectives - With the lists
compiled, sort and group facts and ideas in relation to the
objectives.
List Strengths, Weaknesses,
Opportunities, & threats
How to conduct the SWOTAnalysis?
18. Mistakes of SWOT
• An unclear goal
• Developing long lists.
• Labeling items "strengths” even if you aren’t any better than the competition.
• Conducting biased assessments.
• Confusing strategies and opportunities.A strategy is an action.An opportunity is an event or
condition that exists independent of your actions.
• Ignoring the internal and external environment factors identified when evaluating strategies
19. Tips
• Be realistic
• Be specific and fair in evaluation.
• Keep your SWOT analysis short and simple.Avoid the complexity
• Distinguish between where your organization is today and where it could be in the
future
20. SWOT à TWOS
• By analyzing the external environment (threats and opportunities), and your internal environment
(weaknesses and strengths), you can use these techniques to think about the strategy of your whole
organization
• Think about a process, a marketing campaign, or even your own skills and experience
• Use TWOS analysis to answer these following questions:
• Make the most of your strengths?
• Circumvent your weaknesses
• Capitalize on your opportunities?
• Manage your threats?
21. Formulate strategies from SWOT
• SO strategy: Strengths and Opportunities – Use Strengths
to take advantages of opportunities
• WO strategy: Weaknesses and opportunities – Over come
weaknesses by taking advantages of opportunities
• WT strategy: Weaknesses and Threats: Minimize the
Weaknesses and avoid Threats
• ST strategy : Strengths and Threats – Use strengths to avoid
22. External Opportunities (O)
1.
2.
3.
External Threats (T)
1.
2.
3.
Internal Strengths (S)
1.
2.
3.
SO
"Maxi-Maxi" Strategy
Strategies that use strengths to
maximize opportunities.
ST
"Maxi-Mini" Strategy
Strategies that use strengths to
minimize threats.
Internal Weaknesses (W)
1.
2.
3.
WO
"Mini-Maxi" Strategy
Strategies that minimize
weaknesses by taking advantage
WT
"Mini-Mini" Strategy
Strategies that minimize
weaknesses and avoid threats.
23. Self - Awareness Activity
• Work in group (at home)
• Do the SWOT,TWOS analysis for your product/service and
your proposed business.
• Present your analysis on class (10 min/each)
24. Pest Analysis
Harvard professor Francis Aguilar is the creator of PEST Analysis. He included a
scanning tool called ETPS
This helps you understand the "big picture" forces of change that you're
exposed to, and, from this, take advantage of the opportunities that they
25. • Helps you to spot business or personal opportunities
• Gives you advanced warning of significant threats.
• Helps you to shape what you're doing, so that you work with
change, rather than against it.
• Helps you to avoid starting projects that are likely to fail
• It can help you break free of unconscious assumptions when
you enter a new country, region, or market; because it helps
you develop an objective view of this new environment.
PESTAnalysis is useful because….
26. There are variations of PESTAnalysis that bring other factors into consideration:
• PESTLE/PESTEL: Political, Economic, Socio-Cultural,Technological, Legal,
Environmental.
• PESTLIED: Political, Economic, Socio-Cultural,Technological, Legal, International,
Environmental, Demographic.
• STEEPLE: Social/Demographic,Technological, Economic, Environmental, Political,
Legal, Ethical.
• SLEPT: Socio-Cultural, Legal, Economic, Political,Technological.
• LONGPESTLE: Local, National, and Global versions of PESTLE. (These are best used
for understanding change in multinational organizations.)
Other versions of PEST
27. Country analysis
• Work in group (at home)
• Make the report about your selected country’s pestle analysis
• Submit next week
28. Competitor analysis
Always competitors!
Purpose:
• Identify top competitors à Knowing the rules of game
• Obtain information about important competitors à Determine strengths/weaknesses of each
competition
• Using that information to predict competitor behavior à Develop strategies based on analysis to
increase success
29. • Companies with a product/service addressing similar needs
• Products/services considered to be close substitutes
• Don’t define too narrowly
• Analyzing broader competitors allows for innovation maximization
Who are competitors?
32. Competitive Analysis Framework
Michael Porter’s 4 components competitive
matrix
• Competitors’ Objectives
• Competitors’ Assumptions
• Competitors’ Strategies
• Competitors’ Capabilities
Purposes of the matrix:
• What drives the competitors?
• What is the competitor capable of doing?
34. Competitor’s Assumptions
• Past experience with a product
• Industry Trends
• Future beliefs about a competitor
• Regional Factors
35. Competitor’s Strategies
• Number of workers
• Current products and services
• Physical changes in a company’s office
• Location of company
• Type of customers
• Target market and target customer
• Type and name of suppliers
• New construction or remodeling
• Advertising or marketing campaigns
What is the competitor currently doing?
36. • What is the competitor capable of?
• What is it not capable of?
• Refer to SWOT analysis
• Reveals how companies CAN act
36
Competitor’s Capabilities & Resources
37. Boxing Activity
• Work in group (On class)
• Doing the competitor analysis for your group’s product/
service
• 30 minutes allowed/ Present on class
38. All the effort of your corporation should amplify your marketing message