Swot Analysis

Topics: Marketing, Marketing plan, Target market Pages: 6 (1959 words) Published: February 2, 2012
Task 3 – Be able to plan the development of hospitality businesses LO3

• You are to prepare a rationale for the development of a new hospitality outlet which is based at Centre Parcs, Netherlands. You need to decide which type of outlet will best suit the target markets which are attracted to this resort. The rationale will need to outline: the concept, market research, target market, location, scale, funding, and products and services (for examples the menu, licensing) (3.1)

Developing the Concept
The first stage in the development of a new concept is to carry out an analysis of the market in w hich the product or service will be offered. This will provide details of the needs of the market so that the product or service can be targeted at the correct market and in the correct way.

Figure 3.2.1 shows the overall marketing planning process.

To understand the market, we use a SWOT analysis. The extensive marketing audit - comprising both internal and external analysis - will enable the particular company to put together a SWOT analysis for the business. The SWOT serves to relate the internal strengths and weaknesses of the business in relation to the external opportunities and threats evident in their marketplace. In essence, the company needs to maximise the application of their capabilities in order to create a differential advantage over their competitors in delivering their goods and services to customers. The SWOT should steer the company towards suitable, achievable objectives for the business. In this way the company should not be trying to compete in areas where it is weak, and should enable them to set clear objectives that the business and the people within it will be able to achieve. Prior to looking at the objectives that organisations can set for themselves in different types of markets, we will examine in more detail the specifics of SWOT analysis. The SWOT analysis enables a company to combine the key factors that emerged from the extensive internal and external analyses that were carried out. The SWOT summarises only the very important factors from the initial analysis.

Illustration 2.2 outlines how this SWOT analysis looks, whilst

investigation can also be split into:
The competition., Suppliers and intermediaries, The political environment. The economic environment, The legal environment ,The technological environment, The social and cultural environment.The examination of the external environment will again be individual to a particular organisation, as the influences of the external environment will vary according to the company being considered. As a brief example look at the current external environment faced by the telecommunications industry (price erosion, high charges for technology, massive premiums to gain airspace, low demand).

Developing objectives
The development of the SWOT should enable the organisation to consider the different objectives that it can set for the future. Different permutations are possible to link the different quadrants from the SWOT analysis. This series of permutations, plus the outline objectives that are able to be set, can be onsidered as follow s: Strength + opportunity = the company needs to exploit this situation.

Strength + threat = the company needs to minimise the threat, perhaps by diverting resources to or aw ay from the aspect of the threat.

Weakness + opportunity = develop the weaknesses into strengths through enhanced capabilities.

Weakness + threat = the company needs to consider what merits there are in continuing with this aspect of the business.

The next step in the marketing planning process is, therefore, to set the marketing objectives. These marketing objectives will mirror the corporate objectives that the organisation has set for itself.

The five levels of a new product development can be seen in Figure 3.2.4.

The key for companies is to continually renew and add to their product offerings. Levitt (1975)...
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