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Creating a SWOT
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Strengths · Adequate financial resources · Strong cash flow · Strong brand equity, recognition, or awareness · Effective advertising and promotions · Effective distribution · High quality · Economies of scale and/or scope · Proprietary technology or patents · Cost advantages · Operational excellence · Proven management · Innovation skills · Visionary CEO, strong leader · Strong Corporate Culture · Market share in segments or geography · Large customer base or relationships |
Opportunities · New technologies · New market segments · Acquisition targets · Vertical integration · Demand growth · Market growth · Decreasing prices of goods, low supplier power · Foreign markets · Low Buyer power · Lack of competition · OEMS · Strategic Alliance · Outsourcing
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Weaknesses · No clear, strategy, vision, · Obsolete facilities · Low profitability · High Costs · No core competence · Lack of key skills · Narrow product line · Internal operation problems · Poor marketing skills · Falling market share · Debt or unable to finance needed strategic initiative · Weak distribution · Non global presence · Low brand · Poor cash flow · Problem in product development · Bad portfolio management · Division infighting · Lack of Cash Cow
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Threats · Strong competitors · Falling barriers to entry · Increasing buyer power · Substitute products or technologies · New strong entrants · Decreasing stock markets · Change in consumer tastes · Increasing foreign competition · Slow market growth · Adverse exchange rates · Impeding legislation · Costly regulatory requirements
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In S/W compare the firm to itself in the past. Then compare the firm with others in the industry. Look at what is it doing better or worse. In T/W these are external factors. They impact on the products, costs, and demand.
You need to answer: What are you doing with your products or services?
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Existing Products |
Products Improved |
New Products |
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Existing Market |
Market Development |
Product Development
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Product Development |
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Expanded Market |
Market Development |
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New Market |
Market Development |
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Radical Innovation Breakthrough Products |
1. Stay with an existing product and penetrate the market further
2. Stay with existing product – annual models of cars or new versions of software
3. Create a new product for existing market – Nike adding apparel, Microsoft offering everything for users
4. Expand in to new segments either new target demographic, lower prices,
5. Finding a new market for an existing product by moving into a new international area