After completing this chapter, student should be able to understand, SWOT analysis Marketing mix
• SWOT stands for:
– – – – Strengths Weaknesses Opportunities Threats
• One of the most useful and essential tools for any business. • Some theorist reverse the order of this analysis and call it TOWS analysis. • SWOT start with internal aspects of the business and more traditional method • TOWS start with external aspects of business. • SWOT analysis should be used by all businesses, and also by all levels and product/business activity groups within its organization.
• Are factors, or core competencies, which will help make use of opportunities, contribute to the achievements objectives and lessen the impact of threats or remove them completely. • For a factor to be considered a strength, the business must ‘do better it’ than its competitors. • Examples of such strengths include: – – – – – Patents Good reputation among customers Strong brands name Using new technology Favorable access to distribution networks
• Are factors that will lessen the ability to pursue opportunities, reduce the ability to achieve objectives or allows threats to have and impact or allow them to occur. • For a factor to be considered a weaknesses, the business must ‘do it less well’ than its competitors in an area that is important to its customers, or to the efficient running of the business. • Factors that can be considered as weaknesses are: – – – – – Lack of patent protection Poor reputation among customers Weak brand name High cost of raw material Lack of access to key distribution channel
Opportunities are factors that will: 1. Allow you to reduce cost or gain control over your inputs. 2. Allow you to improve your processes 3. Allow you to increase the volume and variety of your outputs. Examples of such...