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SWOT Analysis: Source
SWOT Analysis: Source
Source
Internal situation
(controllable)
External situation
(uncontrollable)
1
SWOT analysis - definition
•Strengths •Weaknesses
1. Reliable products 1. Production limited to 20 cars per
2. Well-respected brand name week, resulting in six-month
worldwide waiting lists
3. Competitive prices 2. Outdated production methods
•4. Tightly focused on a •3. Lack of marketing expertise
specialist niche market 4. Limited marketing research
information
•5. Only distributed in UK ( mainly)
and USA
•6. Low profit margin
•Opportunities •Threats
1. Growing marketing in USA 1. Volume manufacturers could
2. High market potential in target specialist niche market
Germany, France, Benelux and •2. Increasing number of specialist
Scandinavia car manufacturers setting up in
3.Untapped market potential in the Europe
UK •3. Tough European legislation
• on exhaust emission standards
likely
3
Tool to develop S/W: Value chain analysis
Ma
•Firm infrastructure
rg
in t
Support •Human resource management
hro
activities
•Technology development
ug h
valu
•Procurement/sourcing
e
h va
ro u g
Primary •Inbound •Outbound •Marketing
•Operations •Services .
th
activities logistics logistics & Sales
gin
Ma r
Up Stream Down stream
Figure : A simplified version of the value chain
Tool to develop O/T: Five forces / PEST
analysis
•New entrants
•Political and Legal •Economic
Forces Forces
•Social/Cultural •Technological
Forces Forces
•Substitutes
The Porter model of competitive
Industry structure
•Entry barriers •Rivalry determinants
•New entrants
•Economies of scale •Industry growth
Proprietary product differences •Fixed (or storage) costs/value added
•Brand Identity •Intermittent overcapacity
•Switching costs •Threat of new entrants •Product differences
•Capital requirements •Brand identity
•Access to distribution •Switching costs
•Absolute cost advantages •Concentration and balance
• Proprietary learning curves
•Industry •Informal complexity
• Access to necessary inputs •Diversity of competitors
• Proprietary low-cost product design
Competitors
•Corporate stakes
•Government policy •Exit barriers
•Expected retaliation
•Insensitivity
•of rivalry •Buyers
•Bargaining power of suppliers •Bargaining power of buyers
•Suppliers
•Threat of substitutes
•Determinants of supplier
•Determination of buyer power
power •Bargaining Leverage •Price Sensitivity
•Differentiation of inputs •Substitutes •Buyer concentration •Price/total purchases
•Switching costs of suppliers and
• versus firm concentration •Product differences
firms in the industry
•Buyer volume •Brand identity
•Presence if substituent costs
•Determinants of •Buyer switching costs relative •Impact on
•Supplier concentration
•Importance of volume to supplier
substitution threat • to firm switching costs quality/performance
•Relative price performance of •Buyer information •Buyer profits
•Cost relative to total purchases in the industry
substitutes •Ability to backward- integrate •Decision-makers’ incentives
•Impact of inputs on cost or differentiation Switching costs •Substitute products
•Threat of forward integration •Buyer propensity to substitute •Pull-through
• relative to threat of background integration
by firms in the industry
•
•7
External marketing audit checklist
Macroenvironment
Forces Key topics/Trends
MACROENVIRONMENT
8
The TOWS matrix
(strategy development)
Conversation
Strategies
Marketing
Strategies
Opportunities Threats
Conversation
Strategies
10
An example – TOWS matrix (strategy
development)