SWOT-Analysis-marketing Powerpoint nav.ppt

Marketing SWOT

1. Marketing: SWOT Analysis

2. •a SWOT analysis is a tool that analyzes an
organization and its environment.
What is a “SWOT Analysis?
•It is one of the first stages in the marketing plan
process and helps marketers focus on key issues to:
• Discover new opportunities
• Manage and eliminate threats

3. •Ie:
•How does our company compare with the competition ?
–(Zellers vs Walmart, Petro Canada vs Shell, Honda vs Mazda, etc)
•a SWOT analysis can be used for a variety of purposes….be it company
based or product based….it simply depends on what it is you want to
analyze
•How does our product compare with the competition ?
–(Mac vs PC, Pepsi vs Coke, Ipod vs Zune, etc.)

4. •SWOT stands for
S trengths
O pportunities
W eaknesses
Opportunities and threats are external factors
T hreats
Strengths and weaknesses are internal factors.

5. Strengths:
•What is it you do better than your competition?
Examples:
A new or innovative product or service
Location of your business
Low prices
High Quality
•What is the business good at ?

6. Weaknesses:
Examples:
Location of your business
•What does your competition do better than you?
Undifferentiated products or services (i.e. in relation to your
competitors)
Poor quality goods or services
•What is the business doing wrong?
•What should you avoid?

7. Opportunities
Areas where the company could take advantage of to improve their situation
(trends, technology, etc.)
Examples:
A new international market
A market vacated by an ineffective competitor
Moving into new market segments that offer improved profits
A developing market (ie – Internet)

8. Threats
•Situations that could lead to lost business
A competitor has a new, innovative product or service.
New competitor in your home market.
Examples:
Price wars with competitors.
•Anything that could feasibly harm your business

9. •By performing a SWOT Analysis, a company can see where they are
positioned relative to their competition
•A SWOT analysis may provide ideas for:
• “caution”
»it may force you to reconsider or completely stop an idea from continuing
(competition is too fierce, product idea isn’t “different” enough, etc.)
• “opportunities”
»see and validate a “gap” and create a product /
service to fill it)

10. •A great “analogy” for a SWOT analysis is that of the great “do I dive into the pool
or not” scenario…..
•You have several options:

11. 1.You can just dive in ……
(therefore don’t do your research or SWOT analysis and live with
the results……)

12. 2.You can put your toe into the water to gather information and make a
decision………
•it is warm so you jump in
(therefore you do your research and base your decision to move
forward or not based on your SWOT analysis of the pool)
Ie –
•It is cold so you decide to stay out and wait for the
environment or water to heat up….and then reassess
• It is too cold so you decide to stay out and cut your losses

13. •As a result, performing a SWOT analysis is simply making the decision as to whether
or not we’re going to jump into the pool or back off and do more research……..

14. •So, now that we know what a SWOT analysis is, let’s do one for a company…..

15. Strengths:
•a powerful retail brand - it has a reputation for value for
money, convenience and a wide range of products all in
one store.
•Substantial growth in recent years (both within USA and
internationally)
•Economies of scale (purchasing, manufacturing, etc).

16. Weaknesses
•Wal-Mart is the World's largest grocery retailer and
control of its empire could leave it weak in some areas
due to the huge span of control.
•Since Wal-Mart sell products across many sectors (such
as clothing, food, or stationary), it may not have the
flexibility of some of its more focused competitors.
•The company is global, but has has a presence in
relatively few countries Worldwide.

17. Opportunities
•The stores currently only trade in a relatively small
number of countries. Therefore there are tremendous
opportunities for future business in expanding consumer
markets, such as China and India.
•New locations and store types offer Wal-Mart
opportunities to exploit market development.

18. Threats
•Being number one means that you are the target of
competition, locally and globally.
•Being a global retailer means that you are exposed to
political problems in the countries that you operate in.
•Stigma of using “cheap labour” in overseas “sweat
shops” has hurt reputation

19. •now let’s do one for a specific product…..
Nintendo Wii

20. Strengths:
•Nintendo brand recognition (well known worldwide)
•Wireless Wii Remote – can detect 3 D motion (only one of its kind)
….differentiates from competition (joystick / gamepads)


•Cheaper than competition….$250 vs $399 (Xbox) and $500
(PlayStation 3)

21. Weaknesses
•Slower processor vs competition
•No hard drive
•No DVD drive
•Weaker graphics vs competition

22. Opportunities
•Created new “niche” market / new video game experience….create new games
and experience that can’t be matched
•Less processing / No DVD capability = less costs = ability to sell for less than
competition

23. Threats
•Competition copycat “new” idea
•Competition creates new technology that improves upon Wii “experience”

24. As a result, Nintendo’s SWOT analysis showed that their product was different
and that there was evidence that the product should move forward
•Although further research must be conducted as the product moves through the rest of the marketing mix, the
SWOT analysis supports Nintendo’s competitive position both as a company and for this specific product

25. Conclusion:
•All busineses can profit from performing a SWOT
analysis
•A SWOT analysis is a continual process….the
business environment is continually changing
•By understanding your situation, you can
proactively make business decisions for both the
present and future to ensure success

26. The End!!