SWOT MATRIX

S STRENGTHS WEAKNESSES W
Areas where your Things that your
organization does
particularly well, or factors
W organization could improve
or work upon. It is

S
that distinguish you from extremely important to be
your competitors. honest during this exercise.

T THREATS
O OPPORTUNITIES O
Anything that can Developments in external
negatively influence your conditions (market,
company such as shift in
market requirements,
T government policy, buying
habits etc) that could help
supply chain problems increase your company’s
etc. competitiveness.
 SWOT MATRIX
Internal resources such as skilled, knowledgeable

S staff
Tangible assets such as intellectual property, capital,
proprietary technologies, etc.
WHAT ?
SWOT Analysis is a framework planning technique used to
evaluate a company's competitive position.
Things your company lacks

w Things your competitors do better than you Using this one can understand the current performance of
Resource limitations any business (or Industry), and potential of that business (or
Unclear unique selling proposition Industry) as well as help in structuring its future plans.

Underserved markets for specific products

O Few competitors in your area

Emerging needs for your products or services
Press/media coverage of your company
Emerging competitors
WHEN TO USE ? O
SWOT can be done when you want to have a clearer
understanding of the internal & external factors affecting
any decision (Company/Industry Specific).

T Changing regulatory environment

Negative press/media coverage
Changing customer attitudes toward your company
 McKinsey’s 7s Model
STYLE SKILLS
Transformational leadership Workforce engagement
and open communication and diversity

STRATEGY SHARED SYSTEMS

Conflict resolution
through missions
VISION Procedures for
information flow

STAFF STRUCTURE
Recruitment and Communication
selection channels
 McKinsey’s 7s Model
SYSTEMS : This includes the daily activities and procedures
that staff uses to get the job done.

STRUCTURE : It refers to the organization of a company (how

departments & Teams are structured, including who reports to whom)
STRATEGY : This is an organization's plan for building and
maintaining a competitive advantage over its competitors.
WHAT ?
The McKinsey 7S Model refers to a tool that analyzes a
company's "organizational design." The goal of the model is
to depict how effectiveness can be achieved in an
organization through the interactions of seven key elements.

STAFF : A company's employees and their general capabilities

including their positions and specializations.

STYLE : This refers to the style of leadership adopted and

its effectiveness.
SKILLS : The actual skills and competencies of the organization's
employees to understand their strengths and skill gaps if any.
WHEN TO USE ?
It can be used to examine the effects of future organizational
changes or to align departments and processes during a
merger or acquisition, as well as to assess a company's well-
being and future success.

SHARED VALUES : These are the core values of the organization

and reflect its general work ethic.
 TAM - SAM - SOM
Target Addressable Market
TAM The entire revenue opportunity that exists within a market for a product
or service, ie. the total revenue earned when 100% market share is
achieved

SAM
Service Available Market
The portion of market that the product or service can acquire. Is

SOM
affected by various geographical, cultural, regulatory etc factors.

Service Obtainable Market

This is the percentage of SAM that can be realistically achieved
using the company's resources in the short term
 3C’s Strategic Triangle
Customer
Defining the target audience, identifying demographics, spending

Customer
power, their habits, and their needs.

Competitor
Identifying competitor characteristics like how they operate, their
marketing tactics, their partners, their financials, their distribution and
revenue model.
Company Competitor
Company
Identifying the company characteristics such as the resources at
disposal, market share, revenue streams, product mix, USP etc.
 Balanced Scorecard
FINANCIAL DATA CUSTOMER PERSPECTIVES
To succeed To achieve our
financially, how vision, how
should we appear should we appear
to our shareholders? to our customers?

To achieve our vision, To satisfy our

how will we sustain shareholders and
our ability to change customers, what business
and improve? processes must we excelat?

LEARNING & GROWTH BUSINESS PROCESSES

 Balanced Scorecard
FINANCIAL DATA
Financial data, such as sales, expenditures, and income are used to
understand financial performance. These financial metrics may include 01 WHAT ?
dollar amounts, financial ratios, budget variances, or income targets
The concept of balanced scorecard (BSC), introduced in
LEARNING & GROWTH 1992 by David Norton and Robert Kaplan, refers to a strategic
management performance metric used to identify and
The analysis of training and knowledge resources measures learning and
growth, evaluating how well information is captured and utilized by 02 improve various internal business functions and their
resulting external outcomes
employees to gain a competitive advantage in the industry.

BUSINESS PROCESSES
Business processes are evaluated by investigating how well products are
03 WHEN TO USE ?
manufactured. Operational management is analyzed to track any gaps,
delays, bottlenecks, shortages, or waste The BSC is used to gather information, such as objectives,
measurements, initiatives, and goals, that result from 4
primary functions of business. Companies can identify factors
CUSTOMER PERSPECTIVES
that hinder business performance and outline strategic
Customer perspectives are collected to gauge customer satisfaction with
the quality, price, and availability of products or services. Customers provide 04 changes tracked by future scorecards

feedback about their satisfaction with current products.

 Red Ocean - Blue Ocean
RED OCEAN BLUE OCEAN
Red Oceans Cutthroat Industry It is vast, deep Blue Oceans It is the
denote all the competition boundaries are and powerful denote all the unknown
industries in turns the defined and in terms of industries not market space.
existence ocean red. companies try opportunity in existence unexplored and
today. to outperform and profitable today. unattained by
their rivals. growth. competition.
 Red Ocean - Blue Ocean
RED OCEAN BLUE OCEAN
Beat the Competition.
SUCCESS Make competition irrelevant.

Exploit existing demand. Break the value-cost tradeoff.

Make the Value-cost tradeoff. Create and Capture new demand.

Strategic choice of Differentiation. Have pursuit for differentiation.

WHEN TO USE ?
Red Ocean Srategy is for companies trying to outperform Blue Ocean Strategy if for companies trying to generate
their rivals through more aggressive advertising, price wars, demand in a new market space rather than to compete for
and other tactics. the same market space.
 STP Framework

S T P
Segmentation Targeting Positioning

STP Marketing Model is used when one wants to create marketing communication plans,
prioritize prepositions and deliver personalized messages to engage different audiences.
 STP Framework
Segmentation
Segmentation involves dividing the
population of the customers (both
existing as well as potential) based
on some characteristics. This allows
you to tailor your approach to meet
each group's needs cost-effectively.
General Segmentation is on the
following basis:
1) Demographic Factors
2) Geographic Factors
3) Psychographic Factors
4) Behavioral Factors
Targeting
Targeting involves choosing the best
possible segment (s) for your
product (s).
There are several factors to consider,
significantly forecasting the Growth
(CAGR), evaluating the Profitability,
the segment size along with Ease of
Reach, its lifetime value (is steady
growth possible), etc.
Many companies often do a PEST
Analysis to understand the
Opportunities & Threat of each
segment.
Positioning
It involves two approaches: A)
CUSTOMER-CENTRIC APPROACH & B)
MARKETING MIX MODEL.
Under A, it is essential to understand
how our product shall be presented,
in terms of quality and other
characteristics.
And B involves selecting the best
MARKETING MIX for the most
effective segment along with a
positioning map to understand how
customers will react/behave to our
product.
 Porter’s 5 Forces
Ability to serve the market and make a profit

Threat of New Supplier Competitive Buyer Threat of

Entrants Power Rivalry Power Substitutes

------------------------------- ------------------------------- ------------------------------- ------------------------------- -------------------------------

Legal - Regulatory
Barrier
Economies of Scale
Cost Advantage
Distribution Channels
Product Differentiation
Level of Substitutes
Supplier Reputation
Switching costs
Forward Integration
possibility by supplier
Industry Growth Rate How easily the How easily the
Industry Fragmentation customer customer
Level of Switching can switch over to can switch over to
Costs competing products, competing products, or
Motivation to Lower or services and at what services and at what
Prices cost cost
 Porter’s 5 Forces
Threat of New Entrant
The existence of barriers to entry, economies of product differences, brand
equity, capital requirements, access to distribution, absolute cost
advantages, learning curve advantages, government policies.

Threat of Substitutes The Degree of

Buyer propensity to substitute, relative price performance of substitutes,
buyer switching costs, perceived level of product differentiation.
Industry Competitiveness
----------------------------------------------------------------
Number of competitors, rate of industry
growth, industry overcapacity , exit
Bargaining Power of Suppliers barriers, diversity of competitors,
Factors affecting supplier and firm relations include input differentiation, informational complexity and
substitute inputs, supplier and firm concentration ratio, input cost relative to asymmetry, brand equity, fixed cost
product selling price and volume importance to suppliers. allocation per value added, protection
against imports, government
policies to support/hinder competition
Bargaining Power of Buyers
or monopolices, coordination
Buyer volume , buyer switching costs relative to firm switching costs, buyer within the industry participants.
information availability, availability of existing substitute products, buyer
price sensitivity, price of total purchase, consumer protection laws.
 PESTLE Framework
SOCIAL TECHNOLOGICAL
Widespread belief and attitudes of New ways of producing goods/services, of
the general population. Factors that distributing goods/services, of
have an effect on consumer buying. communicating with target markets.

ECONOMIC LEGAL
Economic growth, interest rates, Health and safety analysis of your
inflation, disposable income of solution, as well as consumer rights in
consumers, business etc. the domain of recommendation.

POLITICAL ENVIRONMENTAL
To what degree does the government Environmental sustainability of your
intervene/hold sway regarding your recommendation (positive or neutral
recommendation preferably)