05 e3 market research swot_long range planning_lecture notes
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Market Research, SWOT, Long Range Planning
Enterprise Strategy/AW/05
Arj Wignaraja
Approaches to Market Research
Secondary Data Collection
Internal Sources
External Sources
• Accounting records
• Marketing data
• Internet• Periodicals• Reports
Primary Data Collection
Observation
Surveys
• Personal• Mechanical
• Mail/e-mail• Telephone• Personal
Key Questions to Ask in a SWOT Analysis
Strengths Weaknesses
Opportunities Threats
Internal
External
Helpful Harmful
Once SWOT Factors Are identified, The Objective is to…
Strengths Weaknesses
Opportunities Threats
Internal
External
Helpful Harmful
Maintain, Build and Leverage Improve or Stop
Counter or MinimizeExploit and BenefitTOO SIMPLE A VIEW OF THE OPTIONS
• Strengths => Opportunities1. Matching
• Threats/Weaknesses => Opportunities /Strengths.2. Converting
• Minimize or Avoid. Ideally eliminate3. Remedying
Developing Strategies from a SWOT Analysis – 3 Options
SWOT Analysis for Sri Lankan Airlines
Strengths Weaknesses
Opportunities Threats
Internal
External
Helpful Harmful
"There is no reason anyone would want a computer in their home." - Ken Olson, president, chairman and founder of Digital Equipment Corp., 1977
"This 'telephone' has too many shortcomings to be seriously considered as a means of communication. The device is inherently of no value to us.“
- Western Union internal memo, 1876.
"The wireless music box [Radio] has no imaginable commercial value. Who would pay for a message sent to nobody in particular?" - David Sarnoff's associates in response to his urgings for investment in the radio in the 1920s.
"Television won't be able to hold onto any market it captures after the first six months. People will soon get tired of staring at a plywood box every night." - Darryl F Zanuck, 1946.
Predictions About the Future Can Always Come Back to Haunt You
What managers need is a picture of the way the world might be in a decade or two. They can then be in a position to evaluate technologies and strategies in terms of how well they fit in with the imagined future state. This picture of the future is known as a scenario.
Gap Analysis Has its Origins in the Rational Planning Model
Current Operations
Future Projects
Gap
Ultimate Objective
Obje
ctiv
e M
easu
rem
ent
Time
Profit $250M
Target growth rate
15%
Strategic target in 5 years
$503M
Sales target ?
Efficiency strategies
Intensive strategies
Diversification strategies
Strategies for Filling a Gap
Shell’s View of Energy Future 2050
Strategy in Practice: Chinese Auto Share of Developed Markets by 2020
Source: McKinsey Quarterly, July 2010