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SWOT Analysis

This document provides an overview of SWOT analysis and its application. It begins with defining SWOT as assessing internal Strengths and Weaknesses and external Opportunities and Threats. It then explains the three stages of a SWOT analysis as identifying these factors, drawing conclusions, and translating them into strategic actions. Examples are given of using SWOT to analyze a small management consultancy and companies like Nirma Chemicals, Samsung, and Nokia. The document emphasizes that SWOT analysis is a simple but useful tool for understanding a business's position and informing its strategic planning.

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Vikas Sharma
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0% found this document useful (0 votes)
108 views

SWOT Analysis

This document provides an overview of SWOT analysis and its application. It begins with defining SWOT as assessing internal Strengths and Weaknesses and external Opportunities and Threats. It then explains the three stages of a SWOT analysis as identifying these factors, drawing conclusions, and translating them into strategic actions. Examples are given of using SWOT to analyze a small management consultancy and companies like Nirma Chemicals, Samsung, and Nokia. The document emphasizes that SWOT analysis is a simple but useful tool for understanding a business's position and informing its strategic planning.

Uploaded by

Vikas Sharma
Copyright
© Attribution Non-Commercial (BY-NC)
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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SWOT

ANALYSIS.
Exploring Corporate Strategy

GROUP MEMBERS:-

Jugal Thakkar 45.

Pooja Mishra 7.

Bhavesh Sawaliya 51.

Nisha Thapa 46.

Amol Nilakh 54. College SIES, Nerul


Class SY BMS (B)
Priya Singh 52.
Subject-Strategic Mgt.
What it pays to be a business SWOT ?
 If you think your business could be doing better,
why not try a SWOT analysis?
 SWOT stands for Strengths, Weakness,
Opportunities and Threats
 By putting your firm under the magnifying glass in
such a fashion you may find the
way to grow your company
or increase your earnings.
Introduction To Swot analysis
 SWOT analysis is a strategic planning method used
to evaluate the Strengths, Weaknesses, Opportunities,
and Threats involved in a business.

 It involves specifying the objective of the business


and identifying the internal and external factors
that are favorable and unfavorable to achieve that
objective.

 Technique is credited to Albert Humphrey,


SWOT Defined
Positive Negative

Internal Strengths Weaknesses

External Opportuniti
Threats
es
What is SWOT Analysis ?
>It is a non-financial planning tool.
>It links the analysis in terms of advantages and
disadvantages; and the internal and external business
environment (in a matrix format).
>The Strengths and Weaknesses are defined by measures
such as market share, loyal customers, level of customer
satisfaction and product quality.
>Opportunities are new potential areas for business in the
future, such as new markets, or new conditions in existing
markets.
>Threats describe how the competition, new technology, or
other factors in the business environment may affect the
business's development. 
> SWOT Analysis is a powerful
technique for understanding
your Strengths and
Weaknesses, and for looking at
the Opportunities and Threats
you face.

> For a business to Expand,


Diversify and Sustain in the
market SWOT analysis is must.
Matching and converting
 Another way of utilizing SWOT is matching and
converting.

 Matching is used to find competitive advantages by


matching the strengths to opportunities.

 Converting is to apply conversion strategies to convert


weaknesses or threats into strengths or opportunities.

 An example of conversion strategy is to find new


markets.

 If the threats or weaknesses cannot be converted a


company should try to minimize or avoid them.
Using SWOT to analyse the market position of a small
management consultancy with specialism in HRM.
Strengths:
>What advantages does your company have?
>What do you do better than anyone else?
>What unique or lowest-cost resources do you
have access to?
>What do people in your market see as your
strengths?
>What factors mean that you "get the sale"?
Weaknesses:
What could you improve?
What should you avoid?
What are people in your market likely to
see as weaknesses?
What factors lose you sales?

Consider this from an internal and external


basis:
Opportunities:

>Where are the good opportunities facing you?


>What are the interesting trends you are aware of?

Useful opportunities can come from such things as:

>Changes in technology and markets on both a broad


and narrow scale.
>Changes in government policy related to your field.
>Changes in social patterns, population profiles,
lifestyle changes.
>Local events.
Threats:

>What obstacles do you face?


>What is your competition doing that you should be
worried about?
>Are the required specifications for your job, products
or services changing?
>Is changing technology threatening your position?
>Do you have bad debt or cash-flow problems?
>Could any of your weaknesses seriously threaten your
business?
Three stages of a SWOT analysis
1. Identify.
2. Draw conclusions.
3. Translate into strategic action.
Advantages of SWOT Analysis
Consolidate strengths
Minimises Weaknesses
Helps to Grab Opportunities
Minimises Threats
Facilitates Planning
Facilitates Alternative Choices
Helps to Innovate
Ensure Survival & Success
nirma chemicals ltd.
 Nirma was a basic detergent with no color, design
or sophistication on the pack the product

 Was priced at around 35% of surf.

 Market share grew from 0% in 1976 to about 60% in


1987 in over a period of ten years
 It has become the largest selling brand and the
success of nirma is due to affordable price, medium
quality, distribution reach and effective use of media.

 The title 'NIRMA GIRL' going round and round on


her feet makes a strong impact for the brand
STRENGTH :-

 Strong brand equity.

 Nirma is a rs.17 billion umbrella brand offering consumers a brand


portfolio of products at multiple price points in detergents, soaps &
personal care market.

 Market leadership in detergents and fabric wash.

 Second largest player in toilet soaps.

 Has wide distribution network.

 Its strategy of rural marketing is its unbeatable strength.


WEAKNESSES:-
-high interest burden.
-less presence in premium segment.
-lacks global tie up
-and thus finds hard to tap export markets.

OPPURTUNITIES:-
-exports.
-acquisitions for strengthening its distribution tie-ups.
-entry into other categories like shampoos,toothpastes,and fabric whiteners.

THREATS:-
-MNCs are approaching indian markets.
-emergence of small but strong regional players.
-brand name products have greater influence over it.
-nirma has been able to etch a niche for itself in the face of intense MNC
competition

NIRMA's achievement is surely something about which an


indian can be proud of brand that has lived up to its catch
line; BETTER PRODUCTS ,BETTER VALUE ,BETTER
LIVING...!
SWOT Analysis On Samsung and Nokia
Strengths of Samsung Strengths of Nokia

 New product concept to rollout in  Strength of the corporate brand.


five months  Complexity improves its Competitive
 Catching the pulse of the consumer, position
offering good designs &  Design, the branding and the
understanding Emotions technology
 Heavy investment in technology,  Backwards compatibility -
product design, and human protection from a Japanese
resources onslaught
 Focus on innovative products for the  Lending personality to its products
high-end market (fashion statement)
 Effective advertisement and market
communication
 Not only a tool for business but
being an item of everyday
convenience
Weaknesses of Samsung. Weaknesses of Nokia.

 Not pro actively coming out  Lapse has opened up space for
with newer models smaller competitors
 Lack in product  Potential threat from Microsoft’s
differentiation. entry into mobile telephony
 Different models at different  Ericsson- king of wireless
price points infrastructure
 Focus on mass market instead  Design to market takes more
of niche markets time
 Not very user friendly designs.
Opportunities of Samsung Opportunities of Nokia

 Distinguish its service from  Highest growth in markets such


competitors. as China and Latin America
 Offer product variations  Feature-loaded phones to act as
 Demand for cell phones driven an offset
by the service providers or  Providing value at a reasonable
carriers lifetime cost
 Tie up with service providers  Life style marketing and
 Lowering the price of a phone by segmentation
just $20 in many countries could  Building a worldwide supplier
increase its affordability by 43%. network
(As per a study report)  Preempting competitors in
critical markets
 Managing competitive
interaction
Threats of Samsung Threats of Nokia

 Motorola’s dominance in the  Biggest threat - “complacency”


U.S, Nokia’s popularity in the  “Inflection point” - a disruptive
European market, controlling technological change
more than half of the world  New competitors with different
market skills and potent brands
 Aggressive competitors, challenge
including Sony, Ericsson, and  3G will increasing competition
Siemens eating into its share. between suppliers
 Not keeping track of the new  Cheaper midrange models from
trends in the market Motorola and others
 Not an accessory and fashion
statement
>The usefulness of SWOT analysis is not limited to profit-
seeking organizations.

>It may be used in any decision-making situation when a


desired end-state (objective) has been defined.
Examples include: non-profit organizations, governmental
units, and individuals.

Key Points
>SWOT Analysis is a simple but useful framework for
analyzing your company's Strengths and Weaknesses, and
the Opportunities and Threats you face.

>This helps you to focus on your strengths, minimize threats,


and take the greatest possible advantage of opportunities
available to you.
>Used in a business context, it helps you carve a
sustainable niche in market.
>Used in a personal context, it helps you develop
your career in a way that takes best advantage of your
talents, abilities and opportunities.

>What makes SWOT particularly powerful is that,


with a little thought, it can help you uncover
opportunities that you are well placed to exploit.

>And by understanding the weaknesses of your


business, you can manage and eliminate threats that
would otherwise catch you unawares.

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