SWOT (Strengths, Weaknesses, Opportunities & Threats) Analysis

SWOT(Strengths, Weaknesses, Opportunities & Threats) Analysis

Brief History of the SWOT AnalysisDeveloped at Stanford University by Albert Humphrey in the 1960s and 1970sFunded by Fortune 500 companiesTook 9 years to developInvolved 5000 interviews

What is a SWOT Analysis?The SWOT analysis provides information that is helpful in matching the firm's resources and capabilities to the competitive environment in which it operates. A strategic planning tool that separates influences on a businesss future success into internal and external factors.It is instrumental in strategy formulation and selection.

StrengthsCharacteristics of the business or a team that give it an advantage over others in the industry.Positive tangible and intangible attributes, internal to an organization.A firm's resources and capabilities that can be used for developing a competitive advantage.

Examples of Strengths

Patents Strong brand namesGood reputation among customersCost advantages from proprietary know-how Exclusive access to natural resourcesGood access to distribution networksWhat advantages does your organization have?What do you do better than anyone else?What unique or lowest-cost resources can you draw upon that others can't?What do people in your market see as your strengths?What factors mean that you "get the sale"?What is your organization'sUnique Selling Proposition(USP)?

Weaknesses

Characteristics that place the firm at a disadvantage relative to others.Detract the organization from its ability to attain the core goal and influence its growth.Factors that do not meet the standards we feel they should meet.The absence of certain strengths.Controllable. They must be minimized and eliminated.

Examples of Weaknesses

Lack of patent protection A weak brand name Poor reputation among customers High cost structure Lack of access to best natural resources Lack of access to key distribution channels What could you improve?What should you avoid?What are people in your market likely to see as weaknesses?What factors lose you sales?

Opportunities

Chances to make greater profits in the environment External attractive factors that represent the reason for an organization to exists and develop.Arise when an organization can take benefit of conditions in its environment to plan and execute strategies that enable it to become more profitable.May arise from market, competition, industry/government and technology.

Examples of Opportunities

An unfulfilled customer need Arrival of new technologies Loosening of regulations Removal of international trade barriersWhat good opportunities can you spot?What interesting trends are you aware of?

ThreatsExternal elements in the environment that could cause trouble for the business External factors, beyond an organizations control which could place the organizations mission or operation at risk.Arise when conditions in external environment jeopardize the reliability and profitability of the organizations business.Uncontrollable. When a threat comes, the stability and survival can be at stake.

Examples of Threats

Shifts in consumer tastes away from the firm's products Emergence of substitute products New regulations Increased trade barriers 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?

Wal-Mart SWOT Analysishttp://www.marketingteacher.com/walmart-swot/Posted onMay 8, 2014byTim Friesner

StrengthsWal-Mart is a powerful retail brand. It has a reputation for value for money, convenience and a wide range of products all in one store.Wal-Mart has grown substantially over recent years, and has experienced global expansion (for example its purchase of the United Kingdom based retailer ASDA).OpportunitiesTo take over, merge with, or form strategic alliances with other global retailers, focusing on specific markets such as Europe or the Greater China Region.The stores are currently only trade in a relatively small number of countries. Therefore there are tremendous opportunities for future business in expanding consumer markets, such as China and India.New locations and store types offer Wal-Mart opportunities to exploit market development. They diversified from large super centers, to local and mall-based sites.Opportunities exist for Wal-Mart to continue with its current strategy of large, super centers.ThreatsBeing number one means that you are the target of competition, locally and globally.Being a global retailer means that you are exposed to political problems in the countries that you operate in.The cost of producing many consumer products tends to have fallen because of lower manufacturing costs. Manufacturing cost have fallen due to outsourcing to low-cost regions of the World. This has lead to price competition, resulting in price deflation in some ranges. Intense price competition is a threat.WeaknessesWal-Mart is the Worlds largest grocery retailer and control of its empire, despite its IT advantages, could leave it weak in some areas due to the huge span of control.Since Wal-Mart sell products across many sectors (such as clothing, food, or stationary), it may not have the flexibility of some of its more focused competitors.The company is global, but has a presence in relatively few countries Worldwide.

GROUP ACTIVITY

Highly Brill Leisure Center has hired you to help them with their marketing decision making.

Perform a SWOT analysis on Highly Brill Leisure Center, based upon the following issues:

The Center is located within a two-minute walk of the main bus station, and is a fifteen-minute ride away from the local railway station.There is a competition standard swimming pool; although it has no wave machines or whirlpool equipment as do competing local facilities.It is located next to one of the largest shopping centers in Britain.It is one of the oldest centers in the area and needs some cosmetic attention.Due to an increase in disposable income over the last six years, local residents have more money to spend on leisure activities.There has been a substantial decrease in the birth rate over the last ten years.In general people are living longer and there are more local residents aged over fifty-five now than ever before.After a heated argument with the manager of a competing leisure center, the leader of a respected local scuba club is looking for a new venue.The local authority is considering privatizing all local leisure centers by the year 2000.Press releases have just been issued to confirm that Highly Brill Leisure Center is the first center in the area to be awarded quality assurance standard BS EN ISO 9002.A private joke between staff states that if you want a day-off from work that you should order a curry from the Centers canteen, which has never made a profit.The Center has been offered the latest sporting craze.Highly Brill Leisure Center has received a grant to fit special ramps and changing rooms to accommodate the local disabled.It is widely acknowledged that Highly Brill has the best-trained and most respected staff of all of the centers in the locality.

Suggested Answer:

http://www.marketingteacher.com/answer-swot-analysis/Posted onMay 8, 2014byTim Friesner

As you can see Marketing Teachers answer does not completely agree with yours. This does not mean that you are wrong. It simply means that the results of your analysis are represented in a different way. Points 2 and 10 are difficult to place. Point 2 depends on whether or not wave machines or a whirlpool have a distinct competitive advantage over a competition standard pool. Point 10 is an internal strength and an external opportunity.17

SWOT/TOWS Matrixan important matching tool that helps managers develop four types of strategies: SO (strengths-opportunities) Strategies, WO (weaknesses-opportunities) Strategies, ST (strengths-threats) Strategies, and WT (weaknesses-threats) Strategies.

SWOT/TOWS MatrixS-O or Maxi-Maxi strategy - Using a strength to maximize an opportunityW-O or Mini-Maxi strategy - Improving capability to maximize an opportunityS-T or Maxi-Mini strategy - Minimizing a threat with a strengthW-T or Mini-Mini strategy - Minimizing weaknesses and threats at same time

StrengthsWeaknessesOpportunitiesS-O StrategiesW-O StrategiesThreatsS-T StrategiesW-T Strategies

Steps in Making a SWOT Matrix1. List the firms key external opportunities.2. List the firms key external threats.3. List the firms key internal strengths.4. List the firms key internal weaknesses.5. Match internal strengths with external opportunities, and record the resultant SO Strategies in the appropriate cell.6. Match internal weaknesses with external opportunities, and record the resultant WO Strategies.7. Match internal strengths with external threats, and record the resultant ST Strategies.8. Match internal weaknesses with external threats, and record the resultant WT Strategies.

TOWS or SWOT Matrix of TOYOTAhttp://mba-lectures.com/management/strategic-management/1248/tows-or-swot-matrix-of-toyota.html

Limitations of the SWOT MatrixSWOT does not show how to achieve a competitive advantage, so it must not be an end in itself.SWOT is a static assessment (or snapshot) in time.SWOT analysis may lead the firm to overemphasize a single internal or external factor in formulating strategies.

Its your time to SHINE! As a BS Accountancy Students of UPV CM, What are your Strengths, Weaknesses, Opportunities and Threats (SWOT Analysis). Give 3-5 each category.

From the SWOT Analysis you made, make a SWOT Matrix to come up with your 4 strategies (SO, WO, ST, WT). Give 1-2 strategies each category.