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What is SWOT Analysis?
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Strengths – core competencies that
confer an advantage when meeting target
market needs.
Weaknesses – limitations faced in
developing or implementing a marketing
strategy.
Opportunities – favourable environmental
conditions that could produce rewards for
the firm if acted upon properly.
Threats – conditions or barriers that may
prevent achievement of objectives.
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SWOT Analysis
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Strengths and Weaknesses are
________factors that can be directly
controlled.
Opportunities and Threats are
______factors that exist independently
and are beyond the organisation’s
control.
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4
What
A scan of the internal and external environment of
a company. Environmental factors internal to a
company are classified as strengths (S) or
weaknesses (W) and those external to a company
are classified as opportunities (O) or threats (T)
Benefits
Quickly and easily creates an understanding of a
company’s underlying position and the driving
forces in the external environment facing a
company
Application
Used frequently to analyze companies and their
environments to gauge competitive forces
SWOT Analysis
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Building a SWOT Analysis Framework
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• Identify a company’s strengths- a
company’s strengths are its resources
and capabilities that can be used as a
basis for developing competitive
advantage
− Patents
− Strong brand names
− Good reputation among customers
− Cost advantages
− Access to resources and/or
distribution
− Strong market position
• Identify a company’s weaknesses- the
absence of certain strengths may be
viewed as weakness or weaknesses
can be the flip side of a strength
− Little or no IP
− Weak brand name
− Poor reputation among customers
or negative PR
− High cost structure
− Lack of access to resources
and/or distribution
− Weak market position
• Identify opportunities for growth
or improved profitability for a
company
− Unfulfilled customers needs
− New technologies
− Loosening of regulations
− Removal of international
trade barriers
− Improving macroeconomic
indicators
• Identify threats facing a
company
− Shifts in consumer tastes
− Emergence of substitute
products
− New regulations
− Increased trade barriers
− Takeover or acquisition of a
the company
• Ensure that internal and
external analysis are consistent
• Order the strengths,
weaknesses, opportunities and
threats by importance within
each section
• Create necessary supporting
exhibits and material
Complete the internal
analysis
Complete the external
analysis
Complete the matrix and
analysis
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