PRESENTED BY:ADITI WALIA

The central purpose of SWOT Analysis is

to Identify the strategies that will create

a firm specific business model that will

best align, fit or match an

organizational resource &capabilities to

the demand of the environment in which

it operates. Strategic managers

compare & contrast the various

alternative possible strategies against

each other with respect to their ability

to achieve major goals & superior

profitability.

The comparison of Strengths, Weaknesses, Opportunities & Threats is normally referred to as SWOT Analysis.•Strength: An inherent capacity of the org which it can use to gain strategic advantage over its competitors.•Weakness: An inherent limitation or constraint of the org that creates strategic disadvantage to it.•Opportunity: A favourable condition in the org’senvironment which enables it to strengthen its position.•Threat: An unfavourable condition in the org’senvironment which causes a risk for, or damage to, the org’s position.

STRENGTH

•A powerful strategy supported by competitively valuable skills & experience in key areas.•Ample financial resources to grow the business.•Strong brand name, image/company reputation.•Cost advantages •Strong advertising & promotion.•Superior skills in supply chain management.•Ability to take advantage of economies of scale or learning & experience curve effects.•A widely recognized market leader & attractive customer base.

WEAKNESS

•Subpar profitability; no cost control measures or cost accounting practices.•Plagued with internal operating problems.•A product line that is too narrow in comparison to that of its rivals.•Lots of underutilized plant capabilities.•Short financial resources.•Not able to attract new customers.•Weak brand image or reputation.•Behind on product quality &/or R&D &/or technological know how.

OPPORTUNITY•Serving additional customer groups or expanding into new geographic markets or product segments.•Expanding the co. product line to meet a broader range of customer needs.•Using the Internet & e-commerce technologies to dramatically cut cost &/or to pursue new sales growth opportunities.•Integrating forward or backward.•Falling trade barriers in attractive foreign markets.•Acquisition of rival firms or companies with attractive technological expertise.•Alliances & joint ventures that expand the firm’s market coverage or boost its competitive capability.

THREAT

•Likely entry of potent new competitors.•Loss of sales to substitute products.•Slow down in market growth.•Mounting competition from new internet start-ups pursuing e-commerce strategies.•Adverse shifts in foreign exchange rates.•Growing bargaining powers of customers & suppliers.•Costly new regulatory requirements.•Vulnerability to industry driving forces.•Adverse demographic changes.

BENEFITS &

LIMITATIONS

OF

BENEFITS

❖SWOT Analysis helps in setting of objectives

for strategic planning.

❖Provides framework for identifying &

analysing strengths, weaknesses, opportunities

& threats.

❖Provides an impetus to analyse a situation &

develop suitable strategies & tactics.

❖Basis for assessing core capabilities &

competencies.

❖Provides a stimulus to participation in a

group exercise.

❖Evidence for, and cultural key to change.

LIMITATIONS❖May cause organisation to view the circumstances

as very simple due to which certain key strategic

contact may be overlooked.

❖Categorizing aspects as strengths, weakness,

opportunity & threat might be very subjective as

there is a great degree of uncertainty in market.

❖To be effective, SWOT needs to conducted

regularly. The pace of the change makes it difficult

to anticipate developments.

❖The data used in the analysis may be based on

assumptions that subsequently proved to be

unfounded ( good or bad ).

❖It lacks detailed structure, so key elements may

get missed.

SWOT

ANALYSIS OF

SOME

COMPANIES

STRENGTH•Biggest PC maker in the World.•They deal directly with the customers with no use of a middle men.•They design the computer to the customer’s specifications.•They ship around one hundred & forty thousand computers in a day.

WEAKNESS•They build computers, not develop them.•They do not have unique technologies to offer the market.•They have weak relationships with many computer retailers.•Dealing with a large amount of supplies from many different countries can cause a large issue when products are recalled.

OPPORTUNITY

•The introduction of new & enticing products to the customers.•Maintaining & expanding the one stop shopping abilities are offered to their customers.•Broadening their scopes in India, Europe & China.•Continuing the market on the internet to gain larger market bases.

THREAT•Fluctuations in the currency markets can make global business operations more open to certain losses in areas of the supply chain.•Tariff trade barriers affecting their positions in multiple countries.•Increasingly lower prices for products amount of their competitors.

STRENGTH•Long standing & well established

brand.•Appeal to many generations•High quality & durable.

•Provides numerous styles & color options.

WEAKNESS•Costly product

•Exclusivity of distribution channels.

OPPORTUNITY•Raise awareness about the importance of the protective lenses.•Chance for brand extension & expansion.•Campaign such as Never Hide & Define Yourself.

THREAT•In hard economic times, people buy

less designer products.•Many stores sell cheaper versions of

Ray-Ban inspired sunglasses.•Consumers brand loyalty to other

sunglasses brand.

STRENGTH•Worldwide presence in 200

countries.•Long list of product line such as football, running, basketball, etc.•Sponsorship to various sports & events like Olympics, Streetball,

etc.•Largest market share in Europe.

WEAKNESS•Limited exposure to U.S. market.

•Poor customer service.•Limited budget allocated to

advertisement.•Few influential athletes in Brand

Portfolio.

OPPORTUNITY•Tie up with local market player to

boost the sale volume.•Has a global opportunity to

expand international market : Retail outlet & e-commerce.•Positive & increasing market

trends can increase through the effective advertising ( for

technology driven products ).

THREAT•Adidas biggest competitor

NIKE has a greater market share & having a big budget in

marketing activity.•Amount of competitors

increasing day by day such as Reebok, CAT, GAP, New Balance.

•Global Economic crisis.

STRENGTH•Enjoys a High-Profile Global

Presence.•Aggressive marketing strategies.•A broad portfolio of products.•Owns the World’s second best

selling brand.

WEAKNESS•Carbonates market is in decline.•They only target young people.

OPPORTUNITY•Growth in tea & Asian beverages.•Increased consumer concerns in comparison to bottled water.•Growth in the functional drinks industry.

THREAT•Obesity & health concerns.•Increased marketing & innovation by Coke.•Restriction to only N. America as target market.

CONCLUSION

Faced with a constantly changing

environment, each business needs to

develop a marketing information system to

track trends & developments, which can be

categorized ats an opportunity or a threat .

The company has to review its strength &

weakness in the background of the

environment’s opportunities & threats i.e.

an organization’s SWOT Analysis.