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A swot analysis (strengths, weaknesses, opportunities and threats) is an analysis that defines
strategic options by linking strengths and weaknesses on the one hand and opportunities and
threats on the other hand.
GOAL AND CONTENT
1. Distinction between strengths and weaknesses on the one hand and opportunities and
threats the other hand
Situation analysis is typically carried out but after that there is never actually a
consideration of opportunities to arrive at a choice of strategy
2. It leads to strategic decisions with sufficient focus on levels within the company
Should produce more ideas for the value strategy if it is not already defined and the
marketing strategy
Geared towards strategic decisions
The value strategy provides further specification of the particular target group choice
(existing and new customers, background features, and lifestyle of the target group) and the
brand positioning (instrumental and emotional, brand varieties)
2. Coordinating alternatives are considered at the same time and explicit indications are given
for which strengths, weaknesses, opportunities and threats link up with each alternative. On
the basis of their quadrant in the matrix, that is separately. This limits creative thinking and
makes it difficult to see the mutual relationships and hard to narrow things down to few
alternatives such as maximum of three. A manager can try to amass various ideas under
umbrella options but this produces too few coherent options.
SUMMARY OF THE SITUATION ANALYSIS
The situation analysis potentially produces a large list of strengths, weaknesses, opportunities
and threats. The following tips are to ensure concise information is outlined:
1. include the most important issues. Limit to maximum 5
2. Classifying the points in the order of importance
3. Ensure the sufficient supportive evidence is available for each point
4. Strengths and weaknesses should be relative to those of the competitors.
Customer analysis
Industry analysis
Competitor analysis
Distribution analysis
Industry analysis
Competition analysis
Distribution analysis
Conclusions:
Sufficient?
Operational excellence is still insufficient and costs must be further reduced, only then
can we think about excelling
Excellence?
Product leadership suits us well but quality and possibilities are found to be less
important and position threatens to be difficult to defend in the future. Doubtful
Customer intimacy would be feasible thanks to our good relationship with distributors
( get customer data via distributors according to permission marketing). Also fits in
with our image as a specialist. Offers the best opportunities.
CHOOSING AN OPTION
The three phases that may be completed during the strategy selection
SUITABILITY
A first evaluation of strategic options concerns the extent to which an option
1. Fits with higher strategic levels (vision, corporate strategy)
2. Revolves with core problem (if that has not happened already)
3. Fits with most important issues in the external and internal environments
FEASIBILITY
the firm needs to find a balance between internal and external issues: between what
customers needs and the relative strength the firm has