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Better Life+ Team
Session B-1 Business Analysis Basic – SWOT and 4C
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Origin: SWOT and 4C come from issue trees and logic thinking mindset
Source: Wikipedia, Powerful Problem Solving.com
An issue tree is a graphical breakdown of your key question.
It has 3 basic rules:
Answer Why or How questions
Progress from the key question to analysis as they move to
the right or down
Insightful breakdown with MECE branches
ISSUE TREE
SWOT
4C
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Example: an issue tree helps to capture all potential answers to the key question
How can B&H build itself as a high-end suit?
Offering high quality suits
Adding prestige to the brand
Providing an exceptional shopping experience
Using an attractive cut
Using only excellent fabric
Using a high-quality assembly
Establishing a brand that its target market wants
Using aspirational vending points
Employing qualified sales agents
Offering instant alterations
Offering complementary services
Offering payment options
Using a cut that suits each customer’s physique
Striking the right balance of ‘in-fashion’ vs. ‘timeless style’
Using only the finest wool
Using appropriate patterns
Using appropriate stitching techniques
Using only first quality thread
Associating it with other famous people
Associating it with other famous brands
Using brand-exclusive shops
Using prestigious department stores
Source: Powerful Problem Solving.com
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SWOT: Introduction
Source: Wikipedia
StrengthsResources and
capabilities that can be
used to develop a
competitive advantage
WeaknessesHindrances to develop
a competitive
advantage; often,
inversions of the
strengths
OpportunitiesAreas open for profit
and growth
ThreatsChanges in the business
environment that
potentially jeopardize a
company’s profitability
or survival
Internal Assessment
External Assessment
HISTORY
Albert S. Humphrey (1926-2005) devised the
SWOT analysis technique while working for the
Stanford Research Institute about
organizational management and cultural
change
DESCRIPTIONS
SWOT analysis is a structured planning method
used to evaluate the Strengths, Weaknesses,
Opportunities, and Threats involved in a project
or in a business venture
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SWOT: Implications
SWOT helps to evaluate and improve a company’s competitive positioning against anticipated market movements
Implications
The relations between different categories provide
insights to improve company’s competitive position
Leverage
Opportunities that fit well with the company’s strengths
Constraints
Weaknesses that hinder the company’s ability to capitalize on
opportunities
Vulnerability
Strengths that can be used to overcome threats
Problem
Threats that attack the company’s weaknesses
Strengths Weaknesses
Opportunities Threats
Internal Assessment
External Assessment
Leverage Constraints Vulnerability Problem
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4C: Introduction
4C is a marketing mix to determine a product or brand’s offering, and there are two versions, one is Customer, Cost, Communication, Convenience, and another is Commodity, Cost, Communication, Channel
Commodity
Cost
Communication
Channel
Customer
Cost
Convenience
Communication
4C Marketing Mix
Version 1 Version 2
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4C: Implications
The following example of Tata Nano car is a good example of how to use 4C to determine a product and it’s brand offering.
Source: Too Good To Fail , Booz & Company Strategy + Business issue 58, spring 2010; Nano website
Customer
Cost
Convenience
Communication
An affordable small family car for Indians
Normal Indian families who need a car
Ideal price level of an affordable family car should be about $2,500
“
”
Nano merchandise online store
Nano: Art in Motion Nano Short Films on Youtube Nano Student of the Year
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Agenda
Key Questions
• Origin: Issue Tree
• Introduction
• Implications
Case study, Take-away and Homework
• Case Study
• Key take-away
• Homework
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Case Study: Starbucks (1/2)
Strengths
• Global coffee brand with fine products and services
• Ethical value and commitment to the environment and community
• Almost 17,000 stores in 49 countries
Opportunities
• New markets for coffee are emerging
• Co-brand with other manufacturers of food and drink, and brand franchising to manufacturers of goods and services
Threats
• Industry competitors and copycat brands
• Rises in the cost of coffee and dairy products
Weaknesses
• New product development and innovation may falter over time
• Highly dependent on the retail of coffee, which could make it slow to diversify into other sectors
SO Strategy
• Create a portfolio with emerging markets to spread business risk
• Localize by co-branding and franchising
WO Strategy
• Develop products that align with local culture and consumer behaviors
• Expand to sectors relative to retail and consumer goods
ST Strategy
• Partner with local suppliers of raw materials and semi-manufactures
• Speed up innovation in both products and service
WT Strategy
• Standardize product/service launch procedure
• Expand in emerging markets and partner with local suppliers
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Case Study: Starbucks (2/2)
Customer Cost Convenience Communication
Not only a cup of coffee,
but an experience to
represent specific needs
of each community it
locates
Priced higher due to
perceived upscale image
attached to its brand
Increase customer loyalty
and viscosity (cost to
change coffee brand)
Any neighborhood with
high traffic and in-store
of shopping malls
Create multiple channels
to find information
Multi-channel interact
with customers, especially
by Internet and apps
Communicate with
customers by culture-
based product innovation
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Key take-away from this Session
SWOT and 4C are very basic but important tools and mindset in understanding and analyzing
business scenarios
The goal of using these tools is not to find facts, but to generate insights and solutions like ‘So
what?’ and ‘Then?’
What’s important particularly is they can also be used in analyzing your own S.W.O.T when
considering your career path or anything during a crossroad in your life
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Homework: analysis of potential competitors of Better Life+ Group
Goal To better understand our competitor and each market that Better Life+ is planning to compete
Content Use SWOT and 4C to analyze one competitor of Better Life+ except cafe industry (we’ve done
that by Starbucks, right?)
Due day Session 4