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SWOT ANALYSIS

OUR TEAM
• FAISAL IFTIKHAR
• NAMRAH ZUBAIR CHATTHA
• NOOR UN NISA SHAIKH
• MISHAL RAZA
• YAHYA KHAR
Contents Covered
• Intro to SWOT Analysis
• What is SWOT Analysis
• Analysis of Internal Environment
• Analysis of External Environment
• SWOT Matrix
• Benefits of SWOT Analysis
• Strategic Focus
• Quantitative Assessment of the SWOT matrix
• Case Study
• References
SWOT Analysis does not occur in Vacuum
Figure: General Business Unit
Strategic Planning Process
What is SWOT Analysis?
• SWOT analysis to be one of the most effective tools in the analysis of
marketing data and information.
• It assesses the fit between what a firm can and cannot do (strengths
and weaknesses), and the environmental conditions working for and
against the firm (opportunities and threats).
• SWOT analysis organizes data and information and is useful in
uncovering competitive advantage which can be leveraged in firm’s
marketing strategy.
• The overall evaluation of a company’s strengths, weaknesses,
opportunities, and threats.
• It’s a way of monitoring the external and internal marketing
environment
• Strengths & Weaknesses are internal
• Opportunities & Threats are external
Analysis of Internal Environment: Strengths &
Weaknesses

• Things your company • Positive tangible and intangible attributes, internal to an


does well organization.
• Qualities that separate
your from your
competitors • Beneficial aspects of the organization or the capabilities of an
• Internal resources such organization, which includes human competencies, process
as skilled HR capabilities, financial resources, products and services, customer
• Tangible assets such as goodwill and brand loyalty
capital propriety and
technology
• For example; Apple brand name, durability, ecosystem , GUI, high
profit margins
Analysis of Internal Environment: Strengths &
Weaknesses

• Things your company • Characteristics that place the firm at a


lack disadvantage relative to others
• Things your
competitors do better • Needs to be minimized
than you
• Resource limitation • Example: Apple;
• Unclear unique selling limited distribution network
proposition High selling prices
Dependence of sales on high end market
segments
External Analysis
• Manager must be mindful of trends and situations in the external
environment
• Stressing internal strengths while ignoring external issues can lead to
an organization that, impede the firm’s ability to serve the needs of
its customers
Analysis of External Environment:
Opportunities & Threats

• Organization should be careful and recognize the • Undeserved market for specific products
opportunities and grasp them whenever they arise.
Opportunities may arise from market, competition, • Few competitors in your area
industry/government and technology.
• Emerging need for your product or services
• Chances to make greater profits in the environment
External attractive factors that represent the reason • Press media coverage for your company
for an organization to exist & develop

• Example :Apple; Expansion of distribution network


• Development of new product lines
Analysis of External Environment:
Opportunities & Threats

• External factors, beyond an organization’s control, which could place the • Emerging competitors
organization’s mission or operation at risk. • Changing regulatory
environment
• Example: Apple; Aggressive competition • Negative media coverage
• Imitation • Changing customer
attitude towards the
company
SWOT MATRIX
• Firms can often convert weaknesses into strengths or even capabilities by investing strategically in
key areas (e.g., customer support, research and development, supply chain efficiency, employee
training).
• Likewise, threats can often be converted into opportunities if the right resources are available.
• Weaknesses that cannot be converted into strengths become the firm’s limitations. Limitations
that are obvious and meaningful to customers or other stakeholders must be minimized through
effective strategic choices.
Manager should
focus on
identifying
competitive
advantages by
matching
strengths to
opportunities
Major benefits of SWOT Analysis
• Simplicity
No extensive training or
technical skills required.

• Lower costs Strategic planning


departments may be
downsized or eliminated.

• Flexibility
Enhancement of strategic
planning.
Greater horizon
Major benefits of SWOT Analysis

SWOT analysis fosters


• Collaboration collaboration and open
information exchange
between different functional
areas.
Establishing a strategic focus (Use of SWOT)
• At the conclusion of the SWOT analysis, the marketing manager must turn his or her attention
toward establishing the strategic focus of the firm’s marketing program.
• Using the results of the SWOT analysis as a guide, a firm might consider four general directions for
its strategic efforts:

• Aggressive (many internal strengths/many external opportunities)

Expansion and growth, with new


products and new markets, are
the keys to an aggressive
approach.
• Diversification (many internal strengths/many external threats)
Firms in this position have a great deal to
offer, but external factors weaken their
ability to pursue aggressive strategies. To
help offset these threats, firms can use
marketing strategy to diversify their
portfolio of products. markets, or even
business units.

• Turnaround (many internal weaknesses/many external opportunities)


Firms often pursue turnaround strategies because
they find themselves in the situation—often
temporary—of having too many internal problems
to consider strategies that will take advantage of
external opportunities. In these cases, firms
typically have to put their own house back in order
before looking beyond their current products or
markets.
• Defensive (many internal weaknesses/many external threats)

Firms take a defensive posture


when they become
overwhelmed by internal and
external problems
simultaneously.
Quantitative Assessment of the SWOT matrix

Opportunities M I R
Strengths M I R

Weaknesses M I R Threats M I R
Limitations of SWOT
• A SWOT analysis may be limited because it:
1. Doesn't prioritize issues
2. Can generate too many ideas but not help you choose which one is
best
3. Can produce a lot of information, but not all of it is useful.
VIDEO
• https://www.youtube.com/watch?v=uA5ikRm6yNo
CASE STUDY
References
• https://lookaside.fbsbx.com/file/kotler_keller_-
_marketing_management_14th_edition.pdf?token=AWzDbUNO35AQ
sXifw64H3sz7lVonlvtWHDHzKkiDqKkyeMCCQPa7lzk-
9O1xRAxZW_RM8RsHLUuNh_gfK1jvU5uG7Jrm8YAjyd4CXjt-
1NPv9sLa1H60L5ZSj2SqFyk1NgKqKT_mkQ4MBq5qUQCIU8p1
• https://fac.ksu.edu.sa/sites/default/files/e_book_marketing_strategy
_ferrell_hartline_5th_ed_2011.pdf

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