LESSON 2

ENVIRONMENT
AND MARKET
SWOT ANALYSIS
SWOT ANALYSIS
SWOT
• means Strengths, Weaknesses, Opportunities, and
Threats
• created in 1960s by business gurus Edmund P. learned, C.
Roland Christensen, Kenneth Andrews, and William D.
Book
• it entails asking pertinent questions about the strengths,
weakness, opportunities, and constraints of the situation
of the business or product in question under investigation
• an effective tool for identifying and evaluating possible
products for the entrepreneur
• it provides clues for product development by way of
evaluating strengths, weaknesses, opportunities, and
threats associated with particular products.
STRENGTHS
•Strengths are positive factors which
the small business has at the moment
•They are considered internal
•Examples includes:
•Adequate supply of working capital
•Cheap raw materials
•Locally available raw materials
WEAKNESSES
• Weaknesses are generally the set of problems
which the business is facing at present or from
the time the business was established
• Examples are:
• Lack of qualified employees
• Business will not support full-time employees
• Poor management control
• Mismanagement of working capital
• Inexperienced managers/owners
OPPORTUNITIES
• Opportunities for a small business in terms of product
identification/development are those chances that are stored
up in the coming future and are up to the business to take the
maximum advantage.
• Example includes:
• Demand for a product you plan to produce
• Favorable government policy
• Scarcity of the product in the locality
• Similar products making profit

Opportunities are different from strengths in as much as

strengths are positive factors which the small business has at
the moment, while opportunities indicate the possible
advantages which the business can make use of in the future.
THREATS
•Threats are normally beyond the control of
the business but can influence its success or
failure.
•Examples are:
•Local regulations that may negatively impact
your business
•Rising costs
•Raw material shortages
•Too many competitors
MAJOR BENEFITS OF SWOT ANALYSIS
• SIMPLICITY
• Requires no extensive training or technical skills to be used
successfully. The analyst needs only a comprehensive
understanding of the nature of the business in which it competes
• LOWER COSTS
• Reduce the costs associated with strategic planning. As firms
begin to recognize this benefit of SWOT Analysis, many opt to
downsize or eliminate their strategic planning departments
• INTEGRATION AND SYSNTHESIS
• Gives the analyst the ability to integrate and synthesize
information, both of a quantitative and qualitative nature.
• COLLABORATION
• Fosters collaboration and open information exchange between
different functional areas.
COMPUTER
HARDWARE
SERVICING
PRODUCTS/SERVICES
AVAILABLE IN THE
MARKET
COMPUTER HARDWARE SERVICING
PRODUCTS/SERVICES AVAILABLE IN THE
MARKET
• In order to be successful in establishing and running a
computer hardware servicing business, an aspiring
entrepreneur must be able to conduct a research on
what products and services are already available in
the market.
• PRODUCTS are anything that is manufactured and
sold
• SERVICES are rendering skills and competencies
required to complete a task or solve an issue
COMMON PRODUCTS SOLD AT A CHS BUSINESS
• COMPUTER SYSTEM COMPONENTS
• Includes all components that are installed inside a computer
system like CPU, main memory, hard disk drives and expansion
cards
• PERIPHERALS
• Includes hardware components that are installed thru a cable
like a printer, scanner, speakers and cameras
• NETWORKING DEVICES
• Includes devices that are used to establish a network like a
router, switch, and hub
• MISCELLANEAOUS MATERIALS
• Includes materials used in the installation and maintenance of
computer systems like cables, connectors, and cleaning
supplies
COMMON SERVICES OF A CHS BUSINESS
1. INSTALLING COMPUTER SYSTEMS AND NETWORKS
• Connecting basic peripherals
• Installing an operating system file
• Installing system drivers file
• Installing computer networks file
2. CONFIGURING COMPUTER SYSTEMS AND NETWORS
• Inspect networking devices, media and connectors
• Creating crossover and straight-through cables
• Assigning IP address to clients and servers
• Configuring the assigned IP address to clients and servers
• Enabling network security
• Configuring file and printer sharing
3. DIAGNOSING AND TROUBLESHOOTING COMPUTER
SYSTEMS
• Determining the computer systems errors
• Identifying the diagnosed computer systems and network
errors
• Replacing defective components
• Reinstallation of defective computer systems
4. MAINTAINING COMPUTER SYSTEMS AND NETWORKS
• Testing normal functions of computer systems
• Performing repair and replacement of faulty computer
systems
• Responding to sudden breakdowns
• Running the burn-in tests
COMPARING
DIFFERENT
PRODUCTS/SERVICES
IN COMPUTER
HARDWARE
SERVICING BUSINESS
• Before starting your very own computer hardware
servicing business, it is important to understand how
it works.
• PRODUCT is anything that is manufactured and then
sold to be used by a customers
• SERVICE is any assistance rendered to a customer for
a fee

• A CHS business concentrates on selling computer

related products as well as rendering services in the
installation, maintenance, and repair of computers
systems and networks. Through comparison among
the direct and indirect competitors in the nearby area
is vital to ensure that your business will have the
competitive advantage.
COMMON PRODUCTS SOLD IN A CHS BUSINESS:
• COMPUTER SYSTEMS
• Complete computer packages that are sold as a
whole and ready to be used
• COMPONENTS
• CPU, main memory, HDD and expansion cards
• PERIPHERALS
• Printers, scanners, and speakers
• HAND TOOLS
• Tools and equipment used in the installation and
maintenance of computer systems and networks
• MISCELLANEOUS MATERIALS
• Includes cables, connectors and print paper
SERVICES OFFERED BY A CHS BUSINESS:
• COMPUTER INSTALLATION
• Involves complete installation of the components that make up a
computer system
• NETWORK CONFIGURATION
• Includes the configuration of the installed computer system so that it could
connect to the network
• MAINTENANCE
• Comprises of proactive services that are done to prevent future faults on
computer systems
• REPAIR
• These are procedures of fixing computer systems or components that are
already damaged
• SOFTWARE INSTALLATION
• Includes installation of licensed software that is generally needed by the
customer to accomplish certain tasks.
THE
POTENTIAL
CUSTOMERS
•It is important to think about your
potential customers when you plan to
launch a business. Through identifying
the customer, you will be able to assess if
the business you plan will meet their
needs. It will also give you an idea about
the types of customers who will likely
spend for your product or service.
Determining the potential buyers will
help in creating the effective marketing
and sales plans.
• MARKET SEGMENTATION
• The creation of identified groups from a broad market
based on their similarities
• These are considered as the “target groups” for a
particular product which is able to address their common
needs.
• DEMOGRAGPHIC PROFILES
• Based on age, marital status, gender, income bracket,
address and social class
• Infant - 0 to 1 year old
• Toddler - 1 to 3 years old
• Child - 3 to 12 years old
• Teenager - 13 to 19 years old
• Adult - 20 years old and above
THE POTENTIAL
COMPETITORS
• In any business, companies will come up with
various products or services to offer
consumers. It is a known fact that there are
different brands that are serving the same
market. This makes marketing and selling
difficult. Competition in the market is defined
as the rivalry among brands who are offering
the same product or service to the same set of
customers. The key is to take note of the
competitors, what they do and offer, and use
it to enhance the current product in order to
achieve a good share of the market.
STEPS IN IDENTIFYING POTENTIAL
COMPETITORS
1. DETERMINE WHO YOUR COMPETITORS ARE.
• Direct competitors - these are businesses or organizations who
have the same product or service that you offer.
• Indirect competitors - companies that offer products that may
not be similar as yours, but can answer the same need or problem
through a different approach.
• Perceived competitors - companies that compete with the
product. These are usually big brands who own a bigger market
share.
2. KNOW WHAT YOUR COMPETITORS DO
• Get as much valuable information about their business and
products, their customers, designs and packaging.
3. EVALUATE THE INFORMATION YOU GATHERED
• Make a list and enumerate the things you learned about them.
GENERATING
POTENTIAL
BUSINESS IDEA
BASED ON
SWOT ANALYSIS
USING SWOT ANALYSIS, A POTENTIAL BUSINESS
IDEA CAN BE ASSESSED:
• WHAT ARE ITS STRENGTHS?
• In order to achieve a product that will be patronized by the potential
customers, it must have some sort of edge over those that are already in
the market. This is known as COMPETITIVE ADVANTAGE.
• WHAT ARE ITS WEAKNESSES?
• The potential business idea will not be free from any weakness. By
knowing the weaknesses, the entrepreneur will be able to address it so
that will not be that big of a factor when the product or service is finally
released
• WHAT ARE ITS OPPORTUNITIES?
• Will serve as a motivation in enhancing the business.
• WHAT ARE ITS THREATS?
• Anything that can counter the success of the potential business idea.