SWOT Analysis

S W O T

SWOTAnalysis

Oppurtunity

Threats

Strengths

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.

What is SWOT Analysis?

3. Prepare Action Plans2. Perform SWOT Analysis & Document

1. Analyse Internal & External Environment

How to conduct SWOT Analysis?

How to conduct SWOT Analysis?

Prepare Action Plan

Things that MUST be addressed immediately

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

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

ForecastingProvides 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.

Decision Making ToolProvides well-rounded

information that prompt well-informed decisions.

Knowing the CompetionReviews a company's

competitors & benchmarks against them to configure strategies that will put the company in a competitive

advantage.

Benefits of SWOT

Analysis

Benefits & Pitfalls of SWOT Analysis

Benefits of SWOT Analysis

Helps in setting of objectives for strategic planning

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

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 Donald’s 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 Decision-Making.

COMPONENTS OF MIS

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 (4P’s) & 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 …..ProductMarketSales Method & PoliciesAdvertisingPricing DistributionBusiness Environment & Corporate

Responsibility

DATA SOURCE

SOURCES OF SECONDARY DATA

INTERNAL SOURCE• SALES & PURCHASE RECORDS• CUSTOMER COMPLAINT

NOTES• SALES ORDERS• SALESMEN’S REPORT• OTHER LITERATURE &

PUBLICATION WORK OF COMPANY

• PAST RESEARCH WORK OF COMPANY

EXTERNAL SOURCE

• GOVT. PUBLICATIONS• ADVERTISING MEDIA(NEWS-

PAPERS,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

TOOLS FOR DATA COLLECTION

• Questionnaire• Tape Recorders• Telephone• Internet• Cameras

SAMPLINGProbabilistic Sampling

Simple RandomStratified SystematicClusterArea

Non-Probabilistic Sampling

ConvenienceJudgment QuotaSnowball

RESEARCH PROCESS

Objective SpecificationProblem IdentificationPreparation Of Research DesignCollection of DataAnalysis of DataInterpretation DataPreparation of Research Report.

END OF LECTURE