Strategic Management Process: Strategy

Formulation

TOOLS
All the tools from Environmental
Scanning
SWOT Analysis
(TOWS, IFAS, EFAS)
Unique Selling Point Analysis
Scenario Planning
 What is a SWOT analysis?

A technique for understanding a firms strengths and

weaknesses along with the opportunities and threats
that exist in the firms environment
Takes a narrow focus by centering on an individual
firm
Used to compare internal and external factors in
order to generate ideas about how their firm might
become more successful
 SWOT Analysis Template
Strengths Weaknesses
Xxx Xxx
Xxx Xxx
Xxx Xxx
Xxx Xxx
Xxx Xxx
xxx xxx
Opportunities Threats
Xxx Xxx
Xxx Xxx
Xxx Xxx
Xxx Xxx
Xxx Xxx
xxx xxx
 What do you do with a SWOT?
Strengths Weaknesses
Xxx Xxx Steer clear of
Xxx Xxx
Xxx
Leverage Xxxweaknesses and
Xxx strengths resolve
Xxx any crushing
Xxx Xxx weaknesses
xxx xxx
Opportunities Threats
Xxx Xxx
Xxx Xxx Protect
Xxx
Capitalize on Xxx
Xxx opportunities Xxx
against major
Xxx Xxx threats
xxx xxx
TOWS Strategic Alternatives Matrix

TOWS Strategic Alternatives Matrix

External Opportunities External Threats
(O) (T)
1. 1.
2. 2.
3. 3.
4. 4.

Internal Strengths SO ST
(S) "Maxi-Maxi" Strategy "Maxi-Mini" Strategy
1.
2. Strategies that use strengths to maximize Strategies that use strengths to minimize threats.

3. opportunities.

4.

Internal Weaknesses (W) WO WT

1. "Mini-Maxi" Strategy "Mini-Mini" Strategy
2. Strategies that minimize weaknesses by taking
3. advantage of opportunities. Strategies that minimize weaknesses and avoid

4. threats.
 Analysis: SWOT for AIRCOM International
Strengths
Is a strong supplier with a good brand, excellent reference customers
and scalable products in both planning and performance management.
Is an established leading independent mobile performance
management provider with the ability to combine software with
consultancy expertise.
Has both performance and network planning and optimisation products,
which are important to the development of SONs.
Offers multi-vendor, multi-technology support for mixed 2G, 3G and 4G
network environments, and evolving products for HSPA+, LTE and SON.
Has more than 300 performance data interfaces available, covering all
major network equipment manufacturers (NEMs).
Employs a deal-driven process for good cash flow, and is moving
towards being market-driven.
Weaknesses
Is making the transition to modern software development
methodologies, and is encountering the usual issues.
Has large customers that could have a negative influence on the
companys product roadmap.
A few CSPs account for much of AIRCOMs revenue.
Opportunities
CSPs are spending more in this area because of 4G technology
upgrades.
Operators need a planned, efficient evolution to 4G that make maximal
use of established 2G, 3G and 3G+ resources.
Capex-restricted CSPs are moving towards shared infrastructure.
The industry vision for SONs requires co-ordinated performance,
optimisation, planning and configuration functions.
AIRCOM has an opportunity to consolidate its position as dominant
independent tools and services supplier worldwide.
AIRCOM could partner with NEMs.
Threats
Outsourced engineering services from Ericsson, Mentum and others.
New, small, niche entrants or players.
IBMs potential market influence if it decides to enter the space,
building on Tivolis market presence in the performance monitoring
space.
NEMs offering SON capabilities for their own equipment will garner
some of the value AIRCOM currently captures.
NEMs deciding to offer these functions particularly SON with
multi-vendor capabilities.
7
 USP
Your USP is the unique thing that you can offer
that your competitors can't. It's your
"Competitive Edge." It's the reason why
customers buy from you, and you alone.
However, USPs are often extremely difficult to
find. And as soon as one company establishes
a successful USP in a market, competitors rush
to copy it.
 Successful USP
Your USP must be truly unique
It must be strong enough to excite your target
market and get them talking about it
It mustn't be easily imitated or copied
 USP Analysis
1. Understand the Characteristics That
Customers Value
2. Rank Yourself and Your Competitors by
These Criteria
3. Identify Where You Rank Well
4. Preserve Your USP (and use it!)
UPS Analysis
USP Analysis