BBA 415 Marketing Chapter 5

Major Benefits of SWOT Analysis

1. Simplicity2. Lower costs3. Flexibility4. Integrationand synthesis5. Collaboration

Directives for a productive swot analysis

1. Stay focused2. Search extensively for competitors3. Collaborate with other functional areas4. Examine issues from the customer?s perspective5. Look for causes not characteristics6. Separate Internal Issues from External Issues

Common criticism against SWOT

1. Becomes a sterile academic exercise of classifying data and information2. Allows firms to create lists without serious consideration of the issues.

Internal segments of SWOT

1. Strengths 2. Weaknesses

External segments of SWOT

1. Opportunities2. Threats

Questions that should be asked in order to identify the most critical issues affecting a company

1. What do customers (and noncustomers) believe about us as a company2. What do customers (and noncustomers) think of our product quality, customer service, price and overall value, convenience, and promotional messages in comparison to our competitors?3. Which of our weaknesses translate into a decreased ability to serve customers (and decreased ability to convert noncustomers)?4. How do trends in the external environment affect customers (and noncustomers)?5. What is the relative importance of these issues, not as we see them but as customers see them?

Types of Resources

1. Financial2. Intellectual3. Legal4. Human 5. Organizational6. Informational7. Relational8. Reputational

Four issues to be aware of when applying a SWOT test susccessfully

1. Assessment of strengths and weaknesses must look beyond the firm's rsources and product offerings to examine processes that are key to meeting customers' needs. This often entails offering solutions to customer's problems rather than specific products.2. Achievement of the firm's goals and objectives depends on its avility to create capapbilties by matching its strengths with market opportunities3. Firms can often convert weaknesses into strengths or even capabilities by investing strategically in key areas.4. Weaknesses that cannot be converted into strengths become the firms limitations

What two elements of the SWOT Matrix should be matched?

Strengths and opportunities

What elements of the SWOT Matrix should be converted to another?

Weaknesses to strengthsThreats to opportunities

What two elements of the SWOT Matrix should be minimized and avoided

Weakness and threats

Quantitative Assessment of the SWOT Matrix

I=Importance of the element (1 low to 3 high) (critical to business model)M= Magnitude of the element (1 low to 3 high) (potential impact)R= total Rating of the elementRating either 1 to 3 or -1 to -3MXI=R

Three basic strategies for developing capabilities and competitive advantages

1. Operational excellence2. Product leadership3. Customer intimacy

Four general directions for its strategic efforts

1. Aggressive ( many internal strengths/many external opportunities)2. Diversification (many internal strenths/many external threats)3. Turnaround (many internal weaknesses/many external opportunities)4. Defensive (many internal weaknesses/many external threats)

7 key factors of 3M

1. Commitment to innovation2. Active maintenance of the corporate culture3. Broad base of underlying technology4. Active networking5. Reward employees for outstanding work6. Measure results7. Listen to the customer

Characteristics of a Marketing Goal

1. Attainability2. Consistency3. Comprehensiveness4. Intangibility

Specific characteristics of a marketing objective

1. Attainability2. Continuity3. Time frame4. Assignment or responsibility