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Exploring Corporate Strategy

GROUP MEMBERS:-

Jugal Thakkar 45.

Pooja Mishra 7.

Bhavesh Sawaliya 51.

Nisha Thapa 46.

Amol Nilakh 54.

Priya Singh 52.

College SIES, NerulClass SY BMS (B)Subject-Strategic Mgt.

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Ifyou think your business could be doing better,why not try a SWOT analysis? SWOT stands for Strengths, Weakness,

Opportunities and Threats

By putting your firm under the magnifying glass insuch a fashion you may find theway to grow your companyor increase your earnings.

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Introduction To Swot analysisSWOT analysis is a strategic planning method usedto evaluate the Strengths,Weaknesses, Opportunities,and Threats involved in a business.

It involves specifying the objective of the businessand identifying the internal and external factors thatare favorable and unfavorable to achieve that

objective.

Technique is credited to Albert Humphrey,

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SWOT Defined

Strengths Weaknesses

Opportunities Threats

Positive Negative

Internal

External

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What is SWOT Analysis ?

>It is a non-financial planning tool.

>It links the analysis in terms of advantages anddisadvantages; and the internal and external businessenvironment (in a matrix format).

>The Strengths and Weaknesses are defined by measuressuch as market share, loyal customers, level of customersatisfaction and product quality.

>Opportunities are new potential areas for business in the

future, such as new markets, or new conditions in existingmarkets.

>Threats describe how the competition, new technology, orother factors in the business environment may affect thebusiness's development.

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> SWOT Analysis is a powerful

technique for understanding

your Strengths and

Weaknesses, and for looking at

the Opportunities and Threatsyou face.

> For a business to Expand,

Diversify and Sustain in themarket SWOT analysis is must.

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Matching and converting

Another way of utilizing SWOT is matching andconverting.

Matching is used to find competitive advantages bymatching the strengths to opportunities.

Converting is to apply conversion strategies to convertweaknesses or threats into strengths or opportunities.

An example of conversion strategy is to find newmarkets.

If the threats or weaknesses cannot be converted acompany should try to minimize or avoidthem.

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Using SWOT to analyse the market position of a smallmanagement consultancy with specialism in HRM.

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Strengths:>What advantages does your company have?>What do you do better than anyone else?

>What unique or lowest-cost resources do youhave access to?>What do people in your market see as yourstrengths?

>What factors mean that you "get the sale"?

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Weaknesses:

What could you improve?What should you avoid?What are people in your market likelyto see as weaknesses?

What factors lose you sales?

Consider this from an internal and external

basis:

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Opportunities:

>Where are the good opportunities facing you?>What are the interesting trends you are aware of?

Useful opportunities can come from such things as:

>Changes in technology and markets on both abroad and narrow scale.>Changes in government policy related to yourfield.>Changes in social patterns, population profiles,lifestyle changes.>Local events.

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Threats:

>What obstacles do you face?

>What is your competition doing that you should beworried about?>Are the required specifications for your job, productsor services changing?

>Is changing technology threatening your position?>Do you have bad debt or cash-f low problems?>Could any of your weaknesses seriously threatenyour business?

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Three stages of a SWOT analysis

1. Identify.

2. Draw conclusions.3. Translate into strategic action.

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Advantages of SWOT Analysis Consolidate strengths

Minimises Weaknesses

Helps to Grab Opportunities

Minimises Threats

Facilitates Planning

Facilitates Alternative Choices

Helps to Innovate

Ensure Survival & Success

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nirma chemicals ltd.

Nirma was a basic detergent with no color, designor sophistication on the pack the product

Was priced at around 35% of surf.

Market share grew from 0% in 1976 to about 60% in1987 in over a period of ten years It has become the largest selling brand and thesuccess of nirma is due to affordable price, medium

quality, distribution reach and effective use of media.

The title 'NIRMA GIRL' going round andround on her feet makes a strong impact for thebrand

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STRENGTH :-

Strong brand equity. Nirma is a rs.17 billion umbrella brand offering consumers a brandportfolio of products at multiple price points in detergents, soaps &personal care market. Market leadership in detergents and fabric wash. Second largest player in toilet soaps. Has wide distribution network. Its strategy of rural marketing is its unbeatable strength.

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WEAKNESSES:--high interest burden.-less presence in premium segment.-lacks global tie up-and thus finds hard to tap export markets.

OPPURTUNITIES:--exports.-acquisitions for strengthening its distribution tie-ups.-entry into other categories like shampoos,toothpastes,and fabric whiteners.

THREATS:--MNCs are approaching indian markets.-emergence of small but strong regional players.-brand name products have greater influence over it.-nirma has been able to etch a niche for itself in the face of intense MNCcompetitionNIRMA's achievement is surely something about which anindian can be proud of brand that has lived up to its catch

line; BETTER PRODUCTS ,BETTER VALUE ,BETTER LIVING...!

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SWOT Analysis On Samsung and Nokia

StrengthsofSamsung

New product concept to rollout infive months

Catching the pulse of the consumer,

offering good designs &understanding Emotions

Heavy investment in technology,product design, and humanresources

Focus on innovative products for the

high-end market

Strengths of Nokia

Strength of the corporate brand.

Complexity improves its Competitiveposition

Design, the branding and thetechnology

Backwards compatibility -protection from a Japaneseonslaught

Lending personality to its products

(fashion statement) Effective advertisement and market

communication

Not only a tool for business butbeing an item of everydayconvenience

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Weaknesses of Nokia.

Lapse has opened up space forsmaller competitors

Potential threat from Microsoftsentry into mobile telephony

Ericsson- king of wirelessinfrastructure

Design to market takes moretime

Weaknesses of Samsung.

Not pro actively coming outwith newer models

Lack in product differentiation.

Different models at different

price points

Focus on mass market insteadof niche markets

Not very user friendly designs.

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Opportunitiesof Samsung

Distinguish its service fromcompetitors.

Offer product variations

Demand for cell phones driven

by the service providers orcarriers

Tie up with service providers

Lowering the price of a phone byjust $20 in many countries couldincrease its affordability by43%.(As per a study report)

Opportunities of Nokia

Highest growth in markets suchas China and Latin America

Feature-loaded phones to act asan offset

Providing value at a reasonablelifetime cost

Life style marketing andsegmentation

Building a worldwide suppliernetwork

Preempting competitors incritical markets

Managing competitiveinteraction

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Threats of Samsung

Motorolas dominance in the U.S,Nokias popularity in theEuropean market, controllingmore than half of the worldmarket

Aggressive competitors,including Sony, Ericsson, andSiemens eating into its share.

Not keeping track of the newtrends in the market

Not an accessory and fashionstatement

Threats of Nokia

Biggest threat - complacency

Inflection point - a disruptivetechnological change

New competitors with different

skills and potent brandschallenge

3G will increasing competitionbetween suppliers

Cheaper midrange models from

Motorola and others

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>The usefulness of SWOT analysis is not limited to profit-seeking organizations.

>It may be used in any decision-making situation when adesired end-state (objective) has been defined.Examples include: non-profit organizations, governmentalunits, and individuals.

Key Points>SWOT Analysis is a simple but useful framework foranalyzing your company's Strengths and Weaknesses, and

the Opportunities and Threats you face.

>This helps you to focus on your strengths, minimize threats,and take the greatest possible advantage of opportunities

available to you.

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>Used in a business context, it helps you carve asustainable niche in market.>Used in apersonal context, it helps you develop

your career in a way that takes best advantage of yourtalents, abilities and opportunities.

>What makes SWOT particularly powerful is that,with a little thought, it can help you uncoveropportunities that you are well placed to exploit.

>And by understanding the weaknesses of yourbusiness, you can manage and eliminate threats thatwould otherwise catch you unawares.

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