3. Know Your Product/
Service
• Look at your plans, then the external
factors and trends affecting it
• Understand where your product/service:
• has been recently
• is now
• is headed
4. Why a SWOT?
The analysis helps you develop a strategy
and tactics to help your business grow
and succeed.
5. SWOT Objective
• Identify critical factors affecting your
organization
• Build on strengths to reduce weaknesses
• Exploit opportunities and avoid potential
threats
13. Questions: Strengths
• What is my business good at?
• What is going right?
• What gives me a unique edge over my
competition?
• Decide how you are going to build and
enhance them. This can be the basis of your
sales strategy.
14. Questions: Weaknesses
• What is my business not so good at?
• What are areas of improvement I can
pursue?
• What do my competitors say about my
business when selling against me?
• Figure out what you can do to remove
these weaknesses or limit their impact.
15. Questions: Opportunities
• What’s new in the industry?
• What new feature or technology can grow
my business?
• Does my competitor have a weakness?
• What new pool of customers can I reach?
• Prioritize them and put together a plan to
capitalize on them.
16. Questions: Threats
• What’s slowing industry growth?
• What policy/regulation changes affect us?
• What competitor is closing in?
• How are customer behaviors changing that
might hurt my current business model?
• Consider how much control you have over
each. Decide which are worth addressing.
18. E-Commerce: Strengths
• 24-7 operation
• Global business from anywhere
• Products reach to customers directly from
producers at lower price than market value
• Fast and effective
• Comparison shopping
19. E-Commerce: Strengths
• More affordable advertising
• Low staff cost
• Financial transaction through electronic
fund transfer is fast
• Can be started with very low investment
20. E-Commerce:
Weaknesses
• No direct customer-seller interaction
• Some customers prefer buying by reaching
personally to the market
• Sometimes, transportation cost increases
product cost
• No. of potential customers who can buy
through Internet is still not enough
21. E-Commerce:
Opportunities
• Internet users rapidly increasing
• More are feeling comfortable buying
through Internet exclusively
• Big companies already in the field blaze the
path and bear the cost of developing a
market
22. E-Commerce: Threats
• Dishonest online businesses damage
consumers’ confidence and faith in the
entire enterprise of Internet marketing
24. Example 1: Strengths
• Cost advantages
• Financial resources
• Customer loyalty
• Wide recognition for social responsibility
25. Example 1: Weaknesses
• Need for experienced managers to help
growth
• Inadequate financing capabilities
• Weak market image
26. Example 1: Opportunities
• Growing demand for quality
• Enter new markets
• Acquire firms with needed technology
27. Example 1: Threats
• Changing buyer tastes
• Likely entry of new competitors
• Adverse government policies
28. Example 2: Strengths
• Global reach of business
• Low cost to maintain and enhance site; not
restricted by footprint
• Stock is recognized brands
• Purchase price less than offline shops
• Strong competition for warehousing and
distribution keeps costs down
29. Example 2: Strengths
• Easy to remain in touch and build
relationships with customers (email,
texting, social media)
• Use existing distribution networks (USPS,
FedEx, UPS)
30. Example 2: Weaknesses
• No shopfront to accept returns
• People need to find our site; there is no
other marketing
• Lack of shop brand recognition
• Hard to scale up to respond to peaks and
troughs in demand
31. Example 2: Weaknesses
• Limited financial capital to fund website
optimization
• Larger or heavy products have high delivery
cost, diminishing online price advantage
• Low web development skills in-house;
reliant on outsourcing
32. Example 2: Opportunities
• Established traffic and high number of
repeat customers may enable increased
sales through the addition of
complimentary product lines
• Increased use of online shopping among
18-35 suggests additional sales may come
from stocking product for this age group
34. Example 2: Threats
• Internet has no barriers to entry, which
means a better financed business or
established retail business might seek to
compete in this niche
• Other online shops selling similar products
• Buyer reluctance to shop online
(diminishing)
35. Example 2: Threats
• Quality issues from overseas suppliers
damage reputation of brands we sell
• Larger business with greater buying power
may undercut our prices to gain online
market share
