Marketing Orientation Sounds Easy, Isn’t it?

                                           SWOT Analysis

•      Strengths

•      Weaknesses

•      Opportunities

•      Threats

                                    The purpose of SWOT Analysis

•      It is an easy-to-use tool for developing an overview of a company’s strategic situation

  –  It forms a basis for matching your company’s strategy to its situation

                                             Strenghts

•     What are the Strengths?

  –   Manufacturing Efficiency?

  –   Good Market Share?

  –   Strong Financial Picture?

  –   Qualified Labour Force?

  –   Superior Reputation?

  

                                             Weaknesses

•     What are the Weaknesses?

  –  Outdated Facilities?

  –  Inadequate R & D?

  –  Obsolete Technologies?

  –  Weak Management?

  –  Past Planning Failures?

  –  Product-related?

  -- Market-related?

                                           Opportunities

•      An OPPORTUNITY is a chance for firm growth or progress due to a favorable juncture of
circumstances in the business environment.

•      Possible Opportunities:

  –  Emerging customer needs

  –  Quality Improvements

  –  Expanding global markets

  –   Legal requirements/limits

                                              Threats

•      A THREAT is a factor in your company’s external environment that poses a danger to its
well-being.

•      Possible Threats:

  –  New entry by competitors

  –  Changing demographics/shifting demand

  –  Emergence of cheaper technologies

  –  Regulatory requirements



                              Identify Critical Issues and Priorities

•     The SWOT analysis should lead to critical issues that a firm must address to maintain its
competitive and financial performance

                                          Recommendations

•      Your recommendations MUST be based on the analysis performed.

•      What are priorities:

  –   short-term

  –   long-term

•      Capabilities of management

•      Infrastructure:  product, market

•      Product-related functions (R&D, manufacturing, etc.)

                                    Your Recommendations should:

•     Help achieve good fit with the overall situation

•     Help build competitive advantage

•     Contribute to higher company performance or a better situation

                    Opportunities and Threats form a basis for EXTERNAL analysis

•      By examining opportunities, you can discover untapped markets, and new products or
technologies, or identify potential avenues for diversification.

•      By examining threats, you can identify unfavorable market shifts or changes in technology,
and create a defensive posture aimed at preserving your competitive position.

                                      Create a Plan of Action

•      What steps can you take to:

  –   Capitalize on your strengths

  –   Overcome or minimize your weaknesses

  –   Take advantage of some new opportunities

  –   Respond to the threats

•      Set goals and objectives, like with any other plan

  

                                           The purpose of
                                        Five-Forces Analysis

•      The five forces are environmental forces that impact on a company’s ability to compete in a
given market.

•      The purpose of five-forces analysis is to diagnose the principal competitive pressures in a
market and assess how strong and important each one is.























                            The Five Forces are Unique to Every Industry

•      Five-Forces Analysis is a framework for analyzing a particular industry.

  –  Yet, the five forces affect all the other businesses in that industry.