SWOT is a common analysis tool that scans the past and present strengths and weaknesses of an existing business as those attributes are perceived by objective parties (not the management!). Furthermore, SWOT displays the upcoming opportunities and threats of the business in question - as perceived by its management. SWOT is an acronym that stands for Strengths, Weaknesses, Opportunities and Threats.

1. Analysis of the current situation c h a p t e r o n e Marketing Plan DIY d anny abramovich Chapter 1out of 4 SWOT Analysis www.MarketingPlanNOW.com

2. 1.6 SWOT Analysis We have analyzed so far external and internal factors of the business : External - From macro to micro analysis; business environment s (PESTO), the market s , the direct competition & the targeted audience s Internal - Unveiling the utility of the marketing-mix The SWOT analysis is a scanning tool of the business covering external and internal factors. a n a l y s i s o f t h e c u r r e n t s i t u a t i o n SWOT as a scanning tool

3. 1.6 SWOT Analysis Objectives of the SWOT analysis - To liaise between the external and the internal environments of the business as well as between its past, present and future. - To serve more as an objective analysis tool compiling objective opinions of customers, employees, suppliers, partners & other stakeholders. - To distinguish between factors that are dependent on us and those that are interdependent ( PESTO ). a n a l y s i s o f t h e c u r r e n t s i t u a t i o n www.MarketingPlanNOW.com

4. 1.6 SWOT Analysis Conducting the SW OT analysis - Scanning the business S trengths & W eaknesses demonstrating past & present (often internal factors) by addressing mainly the customers ( swin = Strengths , W eaknesses, IN ternal) a n a l y s i s o f t h e c u r r e n t s i t u a t i o n As a regular client of ESR Ltd., what do you perceive to be our top five advantages (per order of importance) ? Questionnaire code cons/sw/winter/10

5. 1.6 SWOT Analysis Conducting the SW OT analysis - Scanning the business O pportunities & T hreats demonstrating upcoming (often external factors) by addressing mainly the management ( otex = O pportunities, T hreats, EX ternal) - Distinguishing between o pportunities that are dependent on us and those that are interdependent (PESTO), same goes for t hreats. a n a l y s i s o f t h e c u r r e n t s i t u a t i o n www.MarketingPlanNOW.com

6. 1.6 SWOT Analysis The SWOT Matrix Step 1 : Collecting data to be added to any of the six categories from as many relevant sources as possible a n a l y s i s o f t h e c u r r e n t s i t u a t i o n 1 2 3 4 5 6 the negative column the positive column - - - + + + upcoming external factors that do not depend on us, as perceived by mgt. - - - + + + upcoming factors that depend on us, often external, as perceived by management T hreats O pportunities - - - - - + + + + + past and present factors, often internal to the business, as perceived mainly by the customers W eaknesses S trengths

7. 1.6 SWOT Analysis The SWOT Matrix Step 2 : Re-arranging the attributes per importance as they are perceived by the customers ( SW ) and by the management ( OT ) a n a l y s i s o f t h e c u r r e n t s i t u a t i o n www.MarketingPlanNOW.com - - - + + + upcoming factors that do not depend on us, as perceived by management - - - + + + upcoming factors that depend on us, as perceived by management T hreats O pportunities - - - - - + + + + + past and present factors, as perceived mainly by the customers W eaknesses S trengths

8. 1.6 SWOT Analysis a n a l y s i s o f t h e c u r r e n t s i t u a t i o n The SWOT Matrix Step 3 : Presenting the top 3 attributes per SWOT category. Declaring the top 3 Strengths as USP ’s, u nique s elling p roducts or p ropositions (service) - - + + - - + + T hreats O pportunities - - - - + USP1 + USP2 + USP3 + USP ’s represent attributes that are perceived as your competitive advantages in the eyes of your customers ! W eaknesses S trengths

9. 1.6 SWOT Analysis a n a l y s i s o f t h e c u r r e n t s i t u a t i o n The SWOT Matrix Step 3 : Presenting the top 3 attributes per SWOT category. Declaring the top 3 Strengths as USP ’s, u nique s elling p roducts or p ropositions (service) www.MarketingPlanNOW.com

10. 1.6 SWOT Analysis The SWOT Matrix Step 4 : Searching for ESP ’s, e motional s elling p roducts or p ropositions (service) among the top strengths. a n a l y s i s o f t h e c u r r e n t s i t u a t i o n + USP1 + USP2 + ESP1 + + + ESP ’s represent attributes that are perceived as those competitive advantages that are affective in the eyes of your customers ! S trengths

11. 1.6 SWOT Analysis a n a l y s i s o f t h e c u r r e n t s i t u a t i o n Next issue : ‘Advanced SWOT’ or as it’s called TOWS The SWOT Matrix As USP ’s & ESP ’s are crucial outputs for the success of marketing planning towards the execution of an action plan, SWOT can be also written as U S P WOT www.MarketingPlanNOW.com + USP1 + USP2 + ESP1 + + + S trengths

12. 1.6 TOWS Analysis (not SWOT) Following the SWOT analysis and the completion of its matrix, we can make use of an advanced SWOT entitled ‘ TOWS analysis ’ . The TOWS matrix invites the interaction of the present factors; s trengths & w eaknesses, with the upcoming ones: o pportunities & t hreats. This ‘trial and error method’ can lead into upgraded findings of the scan. a n a l y s i s o f t h e c u r r e n t s i t u a t i o n SWOT as a scanning tool

13. 1.6 TOWS Analysis (not SWOT) a n a l y s i s o f t h e c u r r e n t s i t u a t i o n The TO WS Matrix upcoming factors (next year) www.MarketingPlanNOW.com past & present factors (past year) W T S T T hreats W O S O O pportunities W eaknesses S trengths

14. 1.6 TOWS Analysis (not SWOT) a n a l y s i s o f t h e c u r r e n t s i t u a t i o n The TO WS Matrix upcoming factors (next year) Selected outputs will be used in the next chapter: Marketing Objectives (2) past & present factors (past year) ( W T ) “today’s w eaknesses that may present a t hreat tomorrow” ( S T ) “today’s s trengths that may present a t hreat tomorrow” T hreats ( W O ) “today’s w eaknesses that may present an o pportunity tomorrow” ( S O ) “today’s s trengths that may present an o pportunity tomorrow” O pportunities W eaknesses S trengths

15. a n a l y s i s o f t h e c u r r e n t s i t u a t i o n www.MarketingPlanNOW.com