SWOT Analysis

What is SWOT Analysis?

Strengths

Oppurtunity

SWOT Analysis

Weakness

Acronym for Strengths, Weaknesses, Opportunities, and Threats. Technique is credited to Albert Humphrey who led a research project at Stanford University in the 1960s and 1970s. Planning tool used to understand Strengths, Weaknesses, Opportunities, & Threats involved in a project / business. Used as framework for organizing and using data and information gained from situation analysis of internal and external environment. Technique that enables a group / individual to move from everyday problems / traditional strategies to a fresh perspective.

Threats

How to conduct SWOT Analysis?

1. Analyse Internal & External Environment

2. Perform SWOT Analysis & Document

3. Prepare Action Plans

How to conduct SWOT Analysis?

Prepare Action Plan
Once the SWOT analysis has been completed, mark each point with:

Things that MUST be addressed immediately

Things that can be handled now

Things that should be researched further Things that should be planned for the future

Benefits & Pitfalls of SWOT Analysis

Benefits of SWOT Analysis
Benefits of SWOT Analysis

Knowing the Competion Reviews a company's competitors & benchmarks against them to configure strategies that will put the company in a competitive advantage.

Decision Making Tool Provides well-rounded information that prompt well-informed decisions.

Forecasting Provides a variety of information critical to forecasted variables. Threats, for e.g., can impact a business's forecast. By understanding the company's advantages & disadvantages, forecasts will be more accurate.

Benefits & Pitfalls of SWOT Analysis

Benefits of SWOT Analysis
Besides the broad benefits, here are few more benefits of conducting SWOT Analysis:

Helps in setting of objectives for strategic planning Provides a framework for identifying & analyzing strengths, weaknesses, opportunities & threats Provides an impetus to analyze a situation & develop suitable strategies and tactics Basis for assessing core capabilities & competencies

Evidence for, and cultural key to, change

Provides a stimulus to participation in a group experience

Benefits & Pitfalls of SWOT Analysis

Pitfalls of SWOT Analysis

Can be very subjective. Two people rarely come up with the same final version of a SWOT. Use it as a guide and not as a prescription. May cause organizations to view circumstances as very simple due to which certain key strategic contact may be overlooked. Categorizing aspects as strengths, weaknesses, opportunities & threats might be very subjective as there is great degree of uncertainty in market. To be effective, SWOT needs to be conducted regularly. The pace of change makes it difficult to anticipate developments.

The data used in the analysis may be based on assumptions that subsequently prove to be unfounded [good and bad].
It lacks detailed structure, so key elements may get missed.

Exercise
EXAMPLE

Mc Donalds SWOT Analysis

MARKETING INFORMATION SYSTEM AND MARKET RESEARCH

MARKETING INFORMATION SYSTEM

A Marketing Information System is a Continuing and Interacting system of People, Equipments, and Procedures to Gather ,Sort, Analyse,Evaluate,& Distribute ,Timely & Accurate Information for use by Marketing Decision Makers to Improve their Marketing Planning ,Implementation and Control. - Philip Kotler

MIS
MIS consists of People,Equipment,Facilities,& Procedures Directed to Gather ,Analyze , Evaluate, Update ,Distribute, Preserve Information to Assist Marketing DecisionMaking.

COMPONENTS OF MIS
Marketing Research System

Marketing Intelligence System

Components Of MIS

Marketing Decision Support System

Internal Record System

MARKET RESEARCH
Market Research Consists of Systematic Design for Collection ,Analysis and Reporting of Data & Findings Relevant to Specific Marketing Situation Facing Company. -Philip Kotler.

OBJECTIVE OF MARKET RESEARCH

To Know the Needs & Wants of Target Market. To Know Market Changes. To Face Competition Effectively. To Realize the Marketing Concepts in Practice. To Segment Market & Select Target Market. To Raise the Standard of Living. To Find out Opportunities ,& to Prepare For Challenge & Threats.

OBJECTIVE OF MARKET RESEARCH

To Formulate Marketing (4Ps) & Improve it over time. To Reduce the Risk of Inherent in Decision Making To Access Effectiveness of Marketing Strategies To Reduce Wastage of Valuable Resources To Exercise Control.

SCOPE OF MARKET RESEARCH

Research on .. Product Market Sales Method & Policies Advertising Pricing Distribution Business Environment & Corporate Responsibility

DATA SOURCE

SOURCES OF SECONDARY DATA

INTERNAL SOURCE SALES & PURCHASE RECORDS CUSTOMER COMPLAINT NOTES SALES ORDERS SALESMENS REPORT OTHER LITERATURE & PUBLICATION WORK OF COMPANY PAST RESEARCH WORK OF COMPANY EXTERNAL SOURCE GOVT. PUBLICATIONS ADVERTISING MEDIA(NEWSPAPERS,MAGAZINES ,PERODICALS ,RADIO ,TV) ADVERTISING AGENCIES MARKETING CONSULTANTS MR FIRMS & CONSULTANTS. TRADE FAIR & EXHIBITIONS INTERNET

USES OF SECONDARY DATA

BENEFITS & LIMITATIONS OF SECONDARY DATA

SOURCES OF PRIMARY DATA

SURVEY
PERSONAL INTERVIEW TELEPHONE INTERVIEW MAIL SURVEY

EXPERIMENTAL METHOD
FIELD OR NATURAL EXPERIMENT LABORATORY OR ARTIFICIAL

DATA COLLECTION METHODS OBSERVATION METHODS

STRUCTURED /UNSTRUCTURED LIVE /RECORD

PANEL METHOD
CONSUMER PANEL DEALER PANEL

DIRECT/INDIRECT
HUMAN/MECHANICAL NATURAL /CONTRIVED DISGUISED / UNDISGUISED

SUPPLIER PANEL
FIXED / VARIABLE PANEL CONTINOUS /PERIODICAL

TOOLS FOR DATA COLLECTION

Questionnaire Tape Recorders Telephone Internet Cameras

SAMPLING
Probabilistic Sampling Non-Probabilistic Sampling

Simple Random Stratified Systematic Cluster Area

Convenience Judgment Quota Snowball

RESEARCH PROCESS
Objective Specification Problem Identification Preparation Of Research Design Collection of Data Analysis of Data Interpretation Data Preparation of Research Report.

END OF LECTURE