SWOT analysis

Strengths Weaknesses Opportunities

External

Threats

Internal

1. Introduction It is a process of finding optimum fit between the firm s controllable strengths and weaknesses and the uncontrollable opportunities and threats. Strategic fit matching environmental trends to the firm s competencies Alignment of a firm s resources with its environment SWOT facilitates and guides the creation of marketing strategies that will produce the desired results. SWOT help firm to see the difference between where it thinks it is, where others see it and as being and where it hopes to be

2. Elements of the SWOT analysis a. Strengths Determine strong points, from an internal prospective as well as from the external customers. b. Weaknesses More importantly from customers, it is difficult to acknowledge your weaknesses. c. Opportunities Opportunities are everywhere, such as changes is technology, government policy, social pattern, and emerging trends within the market. d. Threats

No one likes to think about them, but they still have to be faced and to be prepared for. 3. Matching and Converting in the SWOT matrix a. Match between strengths and opportunities b. Convert weaknesses to strengths c. Convert threats to opportunities d. Minimize, if not avoid, weaknesses and threats 4. The application of the SWOT analysis a. Maxi-Maxi (S/O) i. Maximize strengths to capitalize on new opportunities b. Maxi-Mini (S/T) i. Use strengths to minimize threats. c. Mini-Maxi (W/O) i. Conquer weaknesses by making most of any opportunities d. Mini-Mini (W/T) i. Minimize internal weaknesses and avoid external threats 5. Necessary analyses SWOT should cover financial capabilities, technical abilities, location, plant and equipment, personnel, distributor relationships, customer relationships. Asking about competitors: a. b. c. d. e. Marketing Offer Competitive advantage Performing SWOT Profile Compete in future.

Two types of market: 1- Immediate market a. Where the firm actually/potential operates b. Why customers buy and what benefits they seek c. When and where they buy, and who is involved in the purchase decision d. Market segmentation e. Attractiveness 2- Wider market a. PEST

6. Benefits of and barrier to conducting a SWOT analysis a. Allow management to focus on key issues that affect business development and growth b. Development of sound strategic business plan and processes c. Static and dynamic analysis Ask the manager approach instead of swat? 1 2 3 4 Lack of guidance on how to do it Better management information system Pressure on manages The complexity companies

7. Multilevel SWOT analysis a. Product 1 and Market 1 b. Product 1 and Market 2 c. Product 2 and Market 1 d. Product 2 and Market 2 8. Questions a. What are the purposes of carrying out a SWOT analysis? b. What are the major steps in a SWOT analysis? c. What is the idea of matching a firm s strengths with opportunities d. Why is the final result less important than the process involved in the SWOT analysis?