A Sample SWOT Analysis Example

Here is a simple sample swot analysis for a Healthcare Software Company selling high value products to a small niche markets First detail there strengths STRENGTHS Highly experienced team, well established 20 years - highly reputable company High Percentage of Sales from Exports Knowledge of Advanced technology Very efficient Processes Top class service

Now their Weaknesses WEAKNESSES Customers slow to Upgrade Complicated Products - need lots of Customisation Products innovative and market needs to be educated Technology emphasis within company rather than Marketing emphasis

Now their Threats THREATS New competitors entering markets Government spending cut backs Technology changing fast

Now their Opportunities OPPORTUNITIES Population ageing - more care needed Environmental issues increasing profile Healthcare costs rises rapidly Increased Safety and Risk awareness in healthcare

Possible Strategic Way Forward Using their cash rich position to invest in more marketing skills and knowledge to find new markets for their specialist technical knowledge especially in the risk and cost reduction areas in healthcare. Continue to increase export market to give buffer to Local Government initiatives in healthcare that could slow down their growth.

Seek further ways to add more value to customers so to out bid the new competitors. Emphasis in sales materials the company, it's reputation, and capabilities to offset new competitors entering market.

Strengths

Applications and operations divisions along with recently created online service network divisions (MSN) Flexible workforce through contingent workers for seasonal/cyclical projects Loyal, hardworking, and diverse workforce (20% minority, 26% women) who, in addition to good compensation, have an opportunity to do well financially through stock purchases Multinational corporation operating through regional subsidiaries to minimize cultural differences in more than 60 countries New product, Neptune , is a Window's interface and is an example of smart software Relatively rapid product development processes that allow for timely updating and release of new products Revenues and profits rising at 30% a year with merger/acquisition or investment in 92 companies over past five years Software products have high name recognition, broad-based corporate and consumer acceptance (Word, Excel, PowerPoint, Access), and numerous powerful features that are in use worldwide, thereby promoting standardization and competitive advantage through their ease of integration and costeffectiveness Top rating from Fortune for best company to work at and most admired company Windows 95, 98, 2000 series, and Windows NT are globally known as the PC desktop operating system with a market share of about 88% World's largest software company with global name recognition and strong reputation for innovative products

Weaknesses

Between 1990-1995, Microsoft leadership failed to correctly anticipate the growth or popularity of the Internet Bill Gates has become Microsoft's chief software architect but has not yet developed a substantially new line of products Dependency on hardware manufacturers to pre-install Microsoft's PC operating system Downside of product launches and deadlines contributes substantially to employee burnout Employee turnover has increased from 6% for a ten year period to 7.4% Falling sales in the operating systems and server software sectors

Frequent reorganization, red tape, and autocratic atmosphere dampen employee creativity leading to a loss of key personnel and chilling of communication and innovation; 5-layers of management IRS audits in 1989 and 1990 revealed employment status of contingent workers for whom Microsoft did not withhold taxes nor allow to participate in Microsoft's Savings Plus Plan or Employee Stock Purchase Plan, leading to a finding of tax liability for Microsoft in the "permatemps" Vizcaino litigation Little or no significant presence in the wireless market and Windows CE has been disappointing Not a key player in the Internet space and few products for Internet applications Perceived by many as a cut-throat competitor that uses its dominant market position to marginalize competition by stealing/destroying the competition's products, stifling product innovation, and decreasing the availability of competitor products Products have a single application focus and do not work well with or on-top of other products Reputation has suffered because of entanglement in antitrust and "permatemps" Vizcaino litigation

Opportunities

Cheaper global telecommunication costs open new markets as people connect to the Internet Federal trial Judge Thomas P. Jackson's breach of judicial discretion and conduct in the Microsoft antitrust case clouded the proceedings in Microsoft's favor Mobile phone applications and exploitation of personal digital assistants represent a growth industry so that strategic alliances could provide Microsoft with opportunity in a market where it currently has little or no significant presence Popularity among people for Internet access The demand for personal computers in American and global markets remains strong despite the growth and increasing popularity of personal handheld devices

Threats

Apple and Linux threaten Microsoft's 88% market share of the desktop operating market Between 1993-95, Sun Microsystems, Netscape, Oracle, IBM, AOL, and other companies moved into the Internet space and defined it while Microsoft failed to anticipate its growth or popularity Currency exchange rates affect demand for application/operation software and hardware, and fluctuating currencies can negatively impact revenues in the global marketplace Department of Justice antitrust litigation and current appeal creates uncertainty among employees since its outcome is not known

Hardware manufacturers (Sun Microsystems, Oracle, IBM) have collaborated on new platform technologies that replicate much of the value of Windows Hardware manufacturers (Sun Microsystems, Oracle, IBM, AOL, and Apple) are issuing their own pre-bundled programs on their own hardware Linux influence growing from 7% in 1998 to 17% in 1999 Personal computers, mobile-phones, personal digit assistants, entertainmentoriented hand-held computers, and similar wireless products for Internet access do not require Window operating system products Rapid development of mobile devices that will displace/replace personal computers Recession or economic slowdown in the U.S. or global market impacts personal computer equipment sales and their need for an operating systems Software piracy of commercial and consumer applications software on a global scale threatens revenue streams Technology life cycle is shorter and shorter Unix dominates high-end mission-critical applications and its customers do not believe Windows can handle these operations

Critical Small Business SWOT Analysis Example

Here is a SWOT analysis | TOWS Analysis example based on an exercise i had to do recently. A SWOT analysis examines the Strengths (S), Weaknesses (W), Opportunities (O) and Threats (T) of a perspective of one thing, be it a company, a product, a proposition, and idea, a method, or option , etc. SWOT Analysis In this example, it was a proposition to enter a new market for a small software company That Had been producing it's own sophisticated decision support and productivity software for Nearly 25 years. SWOT Tells you what is good and bad about a business or a particular proposition. Once you have worked out the SWOT analysis you can then respond by creating goals and strategies by

Maintaining, building on and leveraging your Strengths Prioritising and optimising you Opportunities Fixing or exiting from your Weaknesses Countering your Threats

When doing a SWOT it is good to keep your answers short, simple, specific, and realistic. So let's get started and remember to keep foucusing on the proposition ... The propostion was to resell an exciting new business intelligence (BI) product for example like Tableau the which overcomes many of the limitations of the existing BI products - Difficult to use, costly, and slow to implement and change. Many resellers have Their own software product or service existing client base on to the which They can build sales of the product resold ... adding value if They can with consultancy and training. This company also has the problem That come three to five years now Their main product Potentially Will be displaced by new technology. They need a replacement product lines Quickly. Their current market is 'slow' with a sales life cycle of 18 months to two years. They are also based in a rural setting with large and medium sized Few Organisations around, but They Make the maximum use of the Internet to service current national and worldwide customer base. So here we go with this SWOT Analysis example.

Strengths

Good with databases and analysis Experience of selling overseas Interested and passionate about data analysis and trending Good balance sheet Reselling a product is quick - no product development required.

Weaknesses

Currently have a small customer base with Few customers with time to Analyse Their data No other vertical markets - would need to find one! Only receive a percentage of sale - question about potential profitability Lots of potential competition - from established products ... 'We already have one of Those thanks' Need 'good paying customers to Prevent cashflow issue - having pay software vendors before the client has paid. Credibility with large corporations or Organisations - little direct experience of the big BI projects

Opportunities

Create an 'Add On' to Existing Products or Services BI software is a growing market Use the product to find new application areas for area company Use the product to find new vertical market for a new product base. Offer Consultancy and Training

Initial cost of sale recovered over time by Further sales of the product to the same account. Current trends in industry and commerce to Reduced costs - great need for data analysis

Threats

Vendors selling policy changes and drops resellers Bad product release product spoils the image ... and effects the ability to sell Company is drawn resources away from current high value added (high profitability) activities to this lower value added (low profitability) activity. Competing with vendors own sales teams and other more local resellers

So what They Should aim of adopting the strategy in this SWOT analysis example.

1. They Should Focus Their Efforts on departments of large and mediumsized Organisations companies to maximise the long term 'add on' or repeat sales as the product use within Their customer spreads Organisation over time. This type of customer is also more Likely to buy the most expensive (higher profit) product resellers eg Server software rather than desktop software. Should targeting this market segment also minimize payment issues and protect cash flow. Also it minimises the drift to the low profitability work. 2. They need to build Their competence and credibility Quickly eg offering technical newsletters or bulletins, and try to distinguish themselves with highly responsive technical support. They need a competitive advantage over other resellers and the main vendors.

3. Offer existing customers a service e.g. Benchmarking - do Their analysis for Them 4. As the software vendor is not in Their time-zone, They need to take advantage of this 'local' advantage 5. Should They move fast and to invest to gain a good customer base before other resellers enter the market 6. They Should try to find customers for the product / services in the industry, They are in now and in related industries. This would build on Their current knowledge (strength) of Their current experience 7. Should They focus on high value added activities Such as training courses and consultancy 8. They Should Consider adding a second BI product to Their portfolio or developing Their own BI product in the medium to long run to guard against a vendor policy change or a bad product release

SWOT Analysis Diagram

Dave Chaffey February 8, 2011. 2 comments Quick Guide: SWOT analysis

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Our guide to creating a SWOT to improve your Internet marketing

A SWOT analysis is an essential part of any business or marketing plan. It allows you to create a plan of action based not on what youre interested in doing or on your gut-feel, but what you need to do given the situation in the marketplace. It considers your capabilities for marketing against competitors plus looks at opportunities created as new technologies are introduced.

What is a SWOT?
As youll know its a 2 X 2 matrix summarising the internal Strengths and Weaknesses against external Opportunities and Threats. These external opportunities and threats are available to all competitors in the marketplace.

Why is a SWOT useful?

When creating a digital marketing plan, SWOT analysis is also an essential step. I think its sometimes seen as an academic exercise and theres the feeling that the time should be spent on improving the execution of the tactics like email or search marketing or improving the site, but the SWOT analysis will give you the strategic view of the main opportunities and challenges available from online marketing. The high-level view will help you see the most important issues which need to be managed for your online success. While any form of SWOT analysis is better than none, Ive found through working on many SWOT, that the technique works best for digital marketing when these 5 issues are reviewed when creating the SWOT. Id advise that you make sure that your SWOT or SWOTs are:

1. Based on existing SWOT for the business

Before looking at SWOT for your online marketing, you need to look at the broader picture. What are the key issues that need to be managed for the business to be successful. As Malcolm MacDonald has recommended this should ideally not be too generic, but should focus on a particular market or customer segment. For understanding how to create a SWOT for marketing, MacDonald is essential viewing. Take a look at this free video sample from Oxlearn. Youll hear how most SWOT are a complete waste of time and how you need to be more specific to make them useful.

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2. Uses a TOWs matrix approach

When I develop SWOT, I find the so-called TOWs matrix approach invaluable wish there was a more sensible name for it. The power of the TOWs matrix format is in the way it not only gives a review, but also helps you create and summarise strategies to improve the market. Oftentimes SWOT are put in the appendix of a report or on the shelf and do not drive action, but the TOWs approach integrates the SWOT into the whole strategy process to help create a plan. The example below shows how the TOWS matrix reviews not only the situation in internal strengths and weaknesses and external opportunities and threats around the edge, but also shows 4 box for creating strategies to succeed in the marketplace.

3. Is created specific for online including multichannel marketing

The Internet and other digital technology offer new opportunities and threats, so creating a SWOT specific to the Internet is important to help meet this challenge. But your Internet SWOT shouldnt consider online channels in isolation customers have a choice of multiple channels, so the SWOT should consider how the Internet presence of a company integrates with the offline world customers often need and want to contact a company by phone, callback and companies still need to use offline communications like print, direct mail and TV in many cases. Here is an example from my Internet Marketing Book showing some of the typical activities that need to be managed such as visibility on partner sites, how to target new customers or improve their experience on your own site.