SWOT (Marketing Management)

threatS :

Changes in the external environmental also may present threats to the firm.

Some examples of such threats include:

• a new competitor in your home market
• price wars with competitors
• shifts in consumer tastes away from the firm's products.
• new regulations.
• increased trade barriers.
• a competitor has a new, innovative product or service
• competitors have superior access to channels of distribution
• taxation is introduced on your product or service

Many of these factors could appear listed in several categories. For example, if one's competitors initiate an alliance, this comprises a threat. If one becomes part of such an alliance, this could become an opportunity. If an existing alliance causes problems in a supply chain, one diagnoses a weakness. If one's alliances offer a competitive advantage, this indicates a strength.

SWOT analysis can help in turning weaknesses and threats into opportunities, and ultimately into strengths. The exercise can also identify opportunities that will address weaknesses, and strengths that will counter threats.

Why use a SWOT Analysis?
In any business, it is imperative that the business be its own worst critic. A SWOT analysis forces an objective analysis of a company's position vis a vis its competitors and the marketplace. Simultaneously, an effective SWOT analysis will help determine in which areas a company is succeeding, allowing it to allocate resources in such a way as to maintain any dominant positions it may have.

                                 The swot matrix 

 

     A firm should not necessarily pursue the more lucrative opportunities.

Rather, it may have a better chance at developing a competitive advantage by

identifying a fit between the firm's strengths and upcoming opportunities. In

some cases, the firm can overcome a weakness in order to prepare itself to

pursue a compelling opportunity .  To develop strategies that take into account the SWOT profile, a matrix of

these factors can be constructed. The SWOT matrix (also known as a TOWS

Matrix) is shown below: 

	strengths:	weaknesses:
opportunitIES:	s-o strategies	w-o strategies
threatS :	s-t strategies	w-t strategies

SWOT (Marketing Management)

MARKETING MANAGEMENT

ASSIGNMENT  # 1

                                       

TOPIC

SWOT  ANALYSIS OF MICROSOFT        

CORPORATION

SWOT ANALYSIS

A SWOT Analysis is a strategic planning tool used to evaluate the Strengths, Weaknesses, Opportunities, and Threats involved in a project or in a business venture. Strengths and weaknesses are internal to an organization while Opportunities and threats originate from outside the organization. A SWOT analysis, usually performed early in the project development process, helps organizations evaluate the environmental factors and internal situation facing a project.

Ideally a cross-functional team or a task force that represents a broad range of perspectives should carry out SWOT analyses. For example, a SWOT team may include an accountant, a salesperson, an executive manager, an engineer, and an ombudsman.

strengths:

A firm's strengths are its resources and capabilities that can be used as a

basis for developing a competitive advantage.example of such strengths include:

•  specialist marketing expertise.
• a new, innovative product or service.
• location of your business.
• quality processes and procedures.
• any other aspect of  business that adds value to a product or service.

weaknesSes:

The absence of certain strengths may be viewed as a weakness. For example,

each of the following may be considered weaknesses:

• Lacke of potent protection.
• weak brand name.
• high cost structure.
• lack of access to the best natural resources.
• lack of access to key distribution channels.
• undifferentiated products and service (i.e. in relation to  competitors)
• location of your business.
• poor quality goods or services.
• damaged reputation

In some cases, a weakness may be the flip side of a strength. Take the case  in which a firm has a large amount of manufacturing capacity. While this

capacity may be considered a strength that competitors do not share, it also may be a considered a weakness if the large investment in manufacturing capacity prevents the firm from reacting quickly to changes in the strategic environment.

Opportunities and threats are external factors. For example:

opportunitIES:

The external environmental analysis may reveal certain new opportunities for profit and growth. Some examples of such opportunities include.

• a developing market such as the Internet.
• mergers, joint ventures or strategic alliances
• moving into new market segments that offer improved profits
• loosening of regulations.
• arrival of new technologies.
• removal of international trade barrier.
• a market vacated by an ineffective competitor