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A company
atttempting to
analyze its own
SWOT must:
1. defining its bussines
2. identifie the opportunities and
threats
3. determine the bussinesss key
success factors
4. look inward and evaluated its
own capabilities and skill

Model of the Strategic Management

Process
assessment
of
organization
Strenghth,
weaknes,
opportunitie
s,and
threats

Formulation
of
organization
mission

Formulation
of
organization
philosophy
andpolicies

Determinati
onof
strategic
objective

Determinati
onof
organization
strategy

Feedback,Feedforward,and
recycle

implementat
ionof
organization
strategy

controlof
organization
strategy

Matching the organizational resources

and skills to the key success factors of
the business provides data that are
useful for formulating, implementing,
and controlling strategic plans
designed to successfully take
advantages of opportunities and
combat threats

Framework for assessing

SWOT of an organization
External
Environmenal
changes

Changes in
industry
characteri
stic

New
opportunitie
s and
threats
formulate,implem
ent,and control
mission
philosophy,polic
is,objectives,
and strategies
of oranization

key
succes
factors

External
Environmen
al changes

resources
and skills

External
Environment

sociocultural

Economic

External
Environment

XYZ
COMPANY

Political

External
Environment

technological

External
Environment

1. Identify the critical environmental

factors
2. Monitor the changes globally that
appears in the critical
environmental factors
3. Forecast the cumulative impacts on
the industry characteristic.

KEY SUCCESS FACTORS

The most important element in the
framework for analyzing the SWOT
of a business is the accurate
determination of its key success
factors.

The key success factors are change

over time.
The key success factors are
different in other industries.

Of INDUSTRY CHARACTERISTIC
1. Nature and Degree of Competition
2. Industry Globalization
3. Barriers to Entry
4. Competitive Power of Substitute Products
5. Buyer Power
6. Supplier Power

Nature and Degree of

Competition
The opportunities and threats as
well as the key success factors in
a industry are a function of the
intensity of rivalry and the
competitions tactics.

INDUSTRY GLOBALIZATION
A global industries is one in
which the strategic positions of
competitors in major geographic
or
national
markets
are
fundamentally affected by their
overall global positions

A global (or multinational)

company
Network located in a numbers of
countries
Linked with the parent company
Common ownership and common
global strategy
The parent company control the
affiliates activities and branding

A key attribute of global

companies
Having ownership of distribution
system in key foreign market that
enable:
Cross-subsidization
International retaliation
World scale volume
Global brand dominance and distribution
positions

A global company must compete on

a worldwide
Use its network to launch attack
against competitors
Moves by ones global company are
met by counter-moves by
competitors
Some industries are more global
than others

..to study and understand the

pillars that serve as the
foundations for the dominant
competitors global
strategies..

BARRIERS TO ENTRY
...the significance of the
competitive threat of entry by new
firms in the market depends on
the barriers to entry, especially
the potential entrants
expectations about how the
incumbent firms will react to it..

Important barriers
Economies scale
Capital
Distribution channels
Brand identification
Cost advantages
Learning or experience curve
Government policy
The reaction of existing competitors
Switching costs

COMPETITIVE POWER OF
SUBSTITUTE PRODUCTS
Substitute can limit the potential of an
industry by putting upper limits on the
prices
..the more attractive the price-satisfaction tradeoff
of substitute products, the greater is the danger of
losing industry sales to the substitute products..

Buyer Power
Buyers can influence competition in
an industry by demanding lower
prices, higher quality, better service,
improved warranty terms, and
forcing sellers to outdo each other for
the buyers business.

Supplier power
Powerful Suppliers can influence the
buying industrys cost, prices, quality,
and ultimately its overall prospects
for growth and profitability

Evaluation of a Firms Strengths and

Weaknesses
1. Identify the small number of key success factors
for the business.
2. Develop a profile of the firms resources and skills.
3. Compare the firms resources and skills profile to
the key success factors of the business.
4. Identify the areas of major strengths.
5. Compare the firms strengths and weaknesses with
the strengths and weaknesses of its major rivals in
the business.
6. Isolate areas in which the firms resources and
skills are significantly stronger or weaker than
those of its major competitors.

THANKS FOR
YOUR
ATTENTION