Lesson 5.4 – The Situation Analysis (SWOT). LESSON 5.4 The Marketing Plan The Situation (S.W.O.T.)...
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Lesson 5.4 – The Situation Analysis (SWOT)
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Transcript of Lesson 5.4 – The Situation Analysis (SWOT). LESSON 5.4 The Marketing Plan The Situation (S.W.O.T.)...
Lesson 5.4 – The
Situation Analysis (SWOT)
LESSON 5.4
The Marketing Plan
The Situation (S.W.O.T.) Analysis
SS
WW
OO
TT
StrengthsResources and capabilities that can be used as a basis for developing a competitive advantage
WeaknessesQualities that give a business a competitive disadvantage
OpportunitiesEvents that could facilitate company profit and growth
ThreatsEvents that could have a negative impact on the company
LESSON 5.4
The Marketing Plan
Situational (S.W.O.T.) Analysis
WeaknessesStrengths
ThreatsOpportunities
LESSON 5.4
The Marketing Plan
SSStrengthsResources and capabilities that can be used as a basis for developing a competitive advantage
Examples of strengths include:
1. Patents
2. Strong brand names
3. Positive reputation among customers
The Situational (S.W.O.T.) Analysis
LESSON 5.4
The Marketing Plan
WW WeaknessesQualities that give a business a competitive disadvantage
Examples of weaknesses could include:
1. Lack of patent protection
2. Weak brand name
3. Poor reputation among customers
4. Lack of resources
5. Inadequate distribution channels
The Situational (S.W.O.T.) Analysis
LESSON 5.4
The Marketing Plan
The Situational (S.W.O.T.) Analysis
OO OpportunitiesEvents that could facilitate company profit and growth
Examples of opportunities could include:
1. An unfulfilled customer need
2. Arrival of new technologies
3. A niche that has not yet been exploited
4. Mergers
5. Entry into new markets
LESSON 5.4
The Marketing Plan
TT ThreatsEvents that could have a negative impact on the company
Examples of threats could include:
1. Shifts in consumer tastes away from company products
2. Emergence of new substitute products
3. Government regulation
The Situational (S.W.O.T.) Analysis
LESSON 5.4
The Marketing Plan
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
The Situational (S.W.O.T.) Analysis
LESSON 5.4
The Marketing Plan
SSStrengthsResources and capabilities that can be used as a basis for developing a competitive advantage
Strengths might include:1. Steady and consistent growth in profits
2. Innovative new technology (lightweight, stretchable (fabric) that increases consumer performance
3. Products tied to effective endorsement campaign (Serena Williams wears your new technology
during games)
The Situational (S.W.O.T.) Analysis
LESSON 5.4
The Marketing Plan
WW WeaknessesQualities that give a business a competitive disadvantage
Weaknesses might include:
The Situational (S.W.O.T.) Analysis
1. 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)
2. Low brand awareness (not enough consumers are familiar with your brand)
3. Dependency on sales of apparel products with a track record of limited growth in footwear (75% of total sales come from the apparel category)
LESSON 5.4
The Marketing Plan
The Situational (S.W.O.T.) Analysis
OO OpportunitiesEvents that could facilitate company profit and growth
Opportunities might include:
1. Well defined objectives with company-wide support (everyone in the company is behind the goal of increasing footwear sales in the next fiscal year)2. Positive industry outlook (forecasts call for substantial growth
in the footwear and apparel markets for the next three to five years)
3. 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)
LESSON 5.4
The Marketing Plan
TT ThreatsEvents that could have a negative impact on the company
Threats might include:
The Situational (S.W.O.T.) Analysis
1. Competitors launching new, similar product (Puma is launching a similar lightweight, stretchable fabric apparel line in the upcoming year)
2. Rising raw material prices (the cost of producing products will rise)
3. Poor economic conditions (consumers are spending less)
The Marketing Plan
LESSON 5.4 REVIEW (ANSWERS)LESSON 5.4 REVIEW (ANSWERS)
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).
The Marketing Plan
LESSON 5.4 REVIEW (ANSWERS)LESSON 5.4 REVIEW (ANSWERS)
2) Identify the four elements of a situation analysis
1- Strengths
2- Weaknesses
3- Opportunities
4- Threats
