Research for Dr.

Ashraf Labib
Prepared by Group A
 Ahmed Ali  Mohamed Serag
 Mahmoud Samy  Mohamed Hamdy
 Marwa Nagy
 Introduction to SWOT Analysis

SWOT analysis or Strength, Weakness, Opportunity, and

Threat analysis

is a business strategy building tool which:

- helps the firm to understand better their current position
in the market
- before taking up a new strategy

- internal factors like: - the external factors like:

 the company’s own strength & weakness  opportunities and threat prevailing in the
market in terms of newer areas or
venture or competition which exists.
 Purpose of SWOT Analysis
is relatively clear and simple as it is primarily used as a
 planning tool to design the strategy needed for the business to grow.
 It can be used both for start-ups entering the new business and even
by existing firms to drive forward their business and growth.
 It identifies the internal and external factors which may affect directly

or indirectly their business growth in the form of the strength,

weakness, opportunities, and threats prevailing in the market.
The prime aim to do SWOT analysis is also to:
make use in the best possible way the firm’s available resources.
 The best way to do this analysis is to involve people from various aspects
of the departments associated with the business and brainstorm with
each one of them about how to drive the business forward.
 SWOT-analysis helps to create a summary analysis of the internal
and external factors. It also helps the firm to identify the risk and make
themselves prepared to mitigate them.
 How to do SWOT Analysis?
mapping all the recorded into a 2×2 grid or matrix identifies any of the factors it is
recorded in the relevant grid.
Weakness Strength
•What are the shortcomings or weaknesses of the •What is the area the company is doing well?
company? •What are the unique resources the company can
•Where does the company lack resources than what draw upon?
other companies have? •What do others perceive as the strength of the
•What do others perceive as the weakness of the company?
company?

Threat
•What are the threats that could affect the company?
•Who are the competitors and what are they doing?
•What are the threats that the weakness of the
company expose on itself?
Opportunity
•What new options are open?
•What is the trend in the market the company can
take advantage of?
•What steps the does the company need to take to
convert the strength into opportunities?
Characteristics of SWOT
Analysis
• It requires the involvement of leaders and founders
along
with other members involved in the crucial stages
of the business.
• It depicts whether a business is sick or healthy.
• It takes into consideration both the internal and
external factors affecting the firm.
• SWOT analysis is an effective forward-looking
planning tool to design the strategy of a business.
• SWOT analysis is can be used by both start-ups and
existing business firms.
The advantages are as
follows:
• It helps in identifying the key areas of action required by the
management of the firm and hence helps in setting up a
priority task list.
• It sheds light on whether a business is sick or healthy.
• It helps businesses to prepare the firm to face possible
threats from competitors.
• It helps in the evaluation of the strategic environment to
help the firm make good and intelligent decisions in the
future courses of action.
• It helps to materialize or prepare the strategic options
available related to the risk and solutions to solve it.
• It helps in building a summary of the external and internal
factors crucial to the success and failure of the business.
The disadvantages are as
follows:
• SWOT analysis is only a single stage of business
planning out of many stages and thus the business
just cannot focus on its result and proceed.
• SWOT analysis goes out of toss when there is a lack
of hierarchy.
• For some elements which do not fit into the four
categories, it is not taken into account even though it
might be an important factor.
• In SWOT analysis too many structures can at times
end upon poor decision making.
• Too much information made fit into the grid can
sometimes end up hampering the desired result.
 Let us take the example #1
of Starbucks, globally brand for coffee and other beverages. Let us conduct a SWOT analysis for Starbucks.
Strengths
• position as the global leader in coffee and beverage retailing
on the back of stellar financial performance.
• strong brand equity which is valued at more than $44 billion.
• Has great brand recall value among its consumers who
perceive its products offerings to be of excellent quality at a
reasonable price.
• It is one of the largest coffeehouses globally & on the back of
its commendable size and high sales volume the
• is able to price its products even for the middle-income group
which forms a huge portion of the consumer segment.
Opportunities
• It can expand the supplier network which will help it to
improve its braining power against the whims of its
unscrupulous supplier network.
• Although the company has expanded into most emerging
markets, it should penetrate the tier-II cities of the emerging
countries in order to further increase its customer base.
• The company should expand its product portfolio to venture
into the full spectrum food and beverage business which
includes the like of Burger King and McDonald’s
Weaknesses
• •Its
. heavy dependence on coffee beans, which is the key
input, keeps its profitability vulnerable to price volatility of
coffee beans.
• In the past, the company has been under the scanner of
many environmentalists and social activists for procuring
coffee beans from impoverished third-world farmers.
• Despite its pricing catering to the middle tier of the society,
the price is still costly for many working consumers
Threats
• The company’s profitability is always at the mercy
of rising prices of coffee beans and the whimsical supply
network.
• The customer outreach faces strong competition from the
local coffeehouses and specialty stores that offer similar
products at a much cheaper price.
• The company’s growth in the past was primarily driven
by the developed markets which are currently saturated.