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Week 8 Swot Analysis and Objectives

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

Strength and weaknesses are internal


Opportunities and threats are external

2. Distinction between opportunity and threat

Opportunity is a positive development for an unrevised policy


Threat is a negative

3. Distinction between opportunities and strategies.

A strategy is something that a brand does


Opportunity is an underlying expected increase in demand for

SWOT ANALYSIS REQUIREMENTS


1. It is firmly in tune with practice and has sufficient space for creative reflection

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

SWOT MATRIX STRATEGIES


1. A) The value strategies of Treacy and Wiserma.
This choice should have been made at the company level, but if this was not done, a brand
can still make choices about eh method of competition: product leader, leader in low cost for
the customer , specialised in individual customer relationships. Alternatively, it can come up
with an indication of what must be improved to attain a sufficient level
B)The marketing strategy: target group (segment) and brand positioning

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.

VISION ON ENVIRONMENTAL AND CORE PROBLEM


Categories in the situation analysis:

Customer analysis
Industry analysis
Competitor analysis
Distribution analysis

PROBLEM CONCLUSION AND UNREVISED POLICY


The performance evaluation provides an initial impression of where potential problems are
based on evaluation of the strategy being followed and its results.
The marketing target of a new brand X is not achieved
This is due to mainly disappointing percentage repeat purchases
The cause should not be sought in the implementation of the planned strategy because there
was an important difference between the planned implementation and what actual
implementation
Customer analysis

Industry analysis
Competition analysis
Distribution analysis

Internal analysis and problem

Consumers will continue to demand more


simplicity and user friendliness. Alongside
this development a market for more
professional users is developing
The main point is aging
The most important competition will apply
Because of the multiplicity of the supply,
the customer will rely more on advice in the
shop
Problem conclusion:
The current mage of our brand is too
strongly focused on quality and high price
Expectation for unrevised policy
Our position with consumers will weaken

CHOICE OF A VALUE STRATEGY


Three value disciplines need to be chosen.
The following need to be assessed for each of the value strategies:
1. The current level if one of the three is too low this will need to dealt with before
excelling.
2. Feasibility in excellence here we can estimate whether and to what extent excellence is
feasible within the time constraints
3. Connecting to opportunities which value discipline offers the best opportunities in the
weak environment. What future desires of the client and the weaknesses of the competitiors?

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.

MARKETING STRATEGY DEVELOPMENT


The brainstorming phase of the SWOT analysis is crucial and requires high level of creativity
and empathy. The ideas the company comes up with should be as specific as boost market
share, anticipate customer desires better, diversify and reposition.
1. Repositioning toward user-friendliness
2. Reinforcing the quality aspect
3. Introduction of a user friendly sub brand

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

Each potential suitable options is then compared to a number of internal preconditions


Evaluation based on the seven preconditions (financial, organisational, economic,
technical, socially, legal, ecological, designated with acronym FOESTLE) provide
insight into feasibility: Is it possible to implement the specific option?

RESULTS AND RISKS

a choice needs to be made on the basis of objective variables ( company objectives or


marketing objectives)

SWOT ANALYSIS IN PRACTICE

the firm needs to find a balance between internal and external issues: between what
customers needs and the relative strength the firm has

Week 8 Swot Analysis and Objectives


SBU a unit comprising one or more products having a common market base whose manager
has complete responsibility for integrating all functions into strategy against an identifiable
external competitor.

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