1. Marketing: SWOT Analysis

2. SWOT: analyzes an organization and environment One of first stages of marketing plan Helps marketers focus on key issues: What is a “SWOT Analysis? Manage and eliminate threat Discover new opportunities

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

4. Strengths: What is the business good at ? Why are they better than the competition? Examples: A new or innovative product or service Location of your business Low prices High Quality

5. Weaknesses: Examples: Location of your business What is the business doing wrong? What does your competition do better? What should you avoid? Undifferentiated products or services Poor quality goods or services

6. Opportunities Areas to take advantage of Where can the company improve their situation? Examples: New international market Market vacated by an ineffective competitor Moving into new market segments for improved profits A developing market (ex: Internet)

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

8. Purpose of SWOT analysis: Company can see where they are positioned Relative to their competition May provide ideas for Opportunities May provide ideas for Caution

9. Analogy for a SWOT analysis … Do I dive into the pool or not?

10. 1.You can just dive in …… No research or SWOT analysis Consequence: live with the results….

11. 2.You can “put your toe into the water” Gather information Make a decision……… Which means: perform SWOT analysis

12. Conclusion: SWOT analysis helps make the decision Jump into the pool or Back off and do more research

13. SWOT analysis example: Nintendo Wii

14. Strengths: Nintendo brand recognition Wireless Wii Remote Cheaper than competition

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

16. Opportunities Created new “niche” market Had new games and experiences Less processing / No DVD capability = less costs Therefore: sell for less than competition

17. Threats Competition copycat “new” idea (Kinect) Competition creates new technology Others improve (“steal”?) Wii “experience”

18. Results SWOT analysis showed product was different There was positive evidence therefore move forward More research needed as we progress Nintendo chose to proceed

19. Summary All businesses can profit from SWOT analysis It is a continual process ….the business environment is continually changing Allows you to proactively make business decisions Helps ensure present and future success

20. Your turn… Perform a SWOT analysis for a car of your choice. Make sure the car is currently for sale by a major car company (Ford, GM, Chrysler, Toyota, Honda, etc.) This is a formative assignment…

21. The End!!