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Creating a SWOT

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

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

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

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?

Existing

Products

Products

Improved

New

Products

Existing Market

Market Development

Product Development

Product Development

Expanded Market

Market Development

New Market

Market Development

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