Situation Analysis (SWOT) Lesson 5.4 – The Situation Analysis (SWOT) Copyright © 2010 by Sports Career Consulting, LLC

S W O T The Situation (S.W.O.T.) Analysis Strengths Weaknesses LESSON 5.4 The Marketing Plan The Situation (S.W.O.T.) Analysis S Strengths Resources and capabilities that can be used as a basis for developing a competitive advantage W Weaknesses Qualities that give a business a competitive disadvantage O Opportunities Events that could facilitate company profit and growth T Threats Events that could have a negative impact on the company Copyright © 2010 by Sports Career Consulting, LLC

Situational (S.W.O.T.) Analysis LESSON 5.4 The Marketing Plan Situational (S.W.O.T.) Analysis Strengths Weaknesses Opportunities Threats Copyright © 2010 by Sports Career Consulting, LLC

Examples of strengths include: LESSON 5.4 The Marketing Plan The Situational (S.W.O.T.) Analysis S Strengths Resources and capabilities that can be used as a basis for developing a competitive advantage Examples of strengths include: Patents Strong brand names Positive reputation among customers Copyright © 2010 by Sports Career Consulting, LLC

Examples of weaknesses could include: LESSON 5.4 The Marketing Plan The Situational (S.W.O.T.) Analysis W Weaknesses Qualities that give a business a competitive disadvantage Examples of weaknesses could include: Lack of patent protection Weak brand name Poor reputation among customers Lack of resources Inadequate distribution channels Copyright © 2010 by Sports Career Consulting, LLC

Examples of opportunities could include: LESSON 5.4 The Marketing Plan The Situational (S.W.O.T.) Analysis O Opportunities Events that could facilitate company profit and growth Examples of opportunities could include: An unfulfilled customer need Arrival of new technologies A niche that has not yet been exploited Mergers Entry into new markets Copyright © 2010 by Sports Career Consulting, LLC

Examples of threats could include: LESSON 5.4 The Marketing Plan The Situational (S.W.O.T.) Analysis T Threats Events that could have a negative impact on the company Examples of threats could include: Shifts in consumer tastes away from company products Emergence of new substitute products Government regulation Copyright © 2010 by Sports Career Consulting, LLC

The Situational (S.W.O.T.) Analysis LESSON 5.4 The Marketing Plan The Situational (S.W.O.T.) Analysis As a hypothetical example, let’s say you were conducting a SWOT analysis for an apparel and footwear company competing with companies like Nike, Adidas and Under Armour for market share Copyright © 2010 by Sports Career Consulting, LLC

Strengths might include: LESSON 5.4 The Marketing Plan The Situational (S.W.O.T.) Analysis S Strengths Resources and capabilities that can be used as a basis for developing a competitive advantage Strengths might include: Steady and consistent growth in profits Innovative new technology (lightweight, stretchable fabric) that increases consumer performance Products tied to effective endorsement campaign (Serena Williams wears your new technology during games) Copyright © 2010 by Sports Career Consulting, LLC

Weaknesses might include: LESSON 5.4 The Marketing Plan The Situational (S.W.O.T.) Analysis W Weaknesses Qualities that give a business a competitive disadvantage Weaknesses might include: Too much reliance on sales of products online and not enough in retail environments (your products are not available at Dick’s or Foot Locker) Low brand awareness (not enough consumers are familiar with your brand) Dependency on sales of apparel products with a track record of limited growth in footwear (75% of total sales come from the apparel category) Copyright © 2010 by Sports Career Consulting, LLC

Opportunities might include: LESSON 5.4 The Marketing Plan The Situational (S.W.O.T.) Analysis O Opportunities Events that could facilitate company profit and growth Opportunities might include: Well defined objectives with company-wide support (everyone in the company is behind the goal of increasing footwear sales in the next fiscal year) Positive industry outlook (forecasts call for substantial growth in the footwear and apparel markets for the next three to five years) Copyright © 2010 by Sports Career Consulting, LLC

Opportunities might include: LESSON 5.4 The Marketing Plan The Situational (S.W.O.T.) Analysis O Opportunities Events that could facilitate company profit and growth Opportunities might include: Positive association with endorsers (Serena Williams’ popularity is extremely high and he uses your product and will be featured in an upcoming campaign promoting the brand) Copyright © 2010 by Sports Career Consulting, LLC

Threats might include: LESSON 5.4 The Marketing Plan The Situational (S.W.O.T.) Analysis T Threats Events that could have a negative impact on the company Threats might include: Competitors launching new, similar product (Puma is launching a similar lightweight, stretchable fabric apparel line in the upcoming year) Rising raw material prices (the cost of producing products will rise) Poor economic conditions (consumers are spending less) Copyright © 2010 by Sports Career Consulting, LLC

Blank Slide Available for Teacher Edits LESSON 5.4 The Marketing Plan Blank Slide Available for Teacher Edits Copyright © 2010 by Sports Career Consulting, LLC

LESSON 5.4 REVIEW (ANSWERS) The Marketing Plan 1) Explain the purpose of a situation analysis The situation analysis provides information that is helpful in matching an organization's resources and capabilities to the competitive environment in which it operates by reviewing four key factors pertaining to the company’s current market situation (strengths, weaknesses, opportunities and threats). Copyright © 2010 by Sports Career Consulting, LLC

1- Strengths 2- Weaknesses 3- Opportunities 4- Threats LESSON 5.4 REVIEW (ANSWERS) The Marketing Plan 2) Identify the four elements of a situation analysis 1- Strengths 2- Weaknesses 3- Opportunities 4- Threats Copyright © 2010 by Sports Career Consulting, LLC