Download SWOT Analysis Examples

ProFile2 – Unit 7 – Vocabulary
Phrasal verbs and verb collocations
bring out a product = introduce a new product
turn a failing company around = rescue/make successful
take over a company/business = gain control of a company
stay ahead of the competition = keep in front of the competition
come up with a new product = launch a new product
come up with a solution
catch sb up = catch up with sb = gain ground/come up from behind
break even = neither lose nor make money
make a loss = lose money
make a profit = make money
diversify = vary the range of products in order to be more competitive or to reduce risk
move downmarket = become cheap or appeal to people in the lower social classes
face competition
deal with customers
Other phrases
a competitor
(strong/fierce) competition
competitive
a budget airline
a replacement
a successful x failing company
a line/range of products
turnover
wear and tear
a saturated market
Managing Director
sales
a fresh marketing strategy
a highly-skilled job
blue-collar x white-collar worker
a key customer
a retailer
a market share
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Product Life Cycle (PLC).
A marketing tool for evaluating PRODUCT.
It is based upon the biological life cycle. For example, a seed is planted (introduction); it
begins to sprout (growth); it shoots out leaves and puts down roots as it becomes an adult
(maturity); after a long period as an adult the plant begins to shrink and die out (decline).
In theory it's the same for a product. After a period of development it is introduced or
launched into the market; it gains more and more customers as it grows; eventually the
market stabilises and the product becomes mature; then after a period of time the product
is overtaken by development and the introduction of superior competitors, it goes into
decline and is eventually withdrawn.
However, most products fail in the introduction phase. Others have very cyclical maturity
phases where declines see the product promoted to regain customers.
Strategies for the differing stages of the Product Life Cycle.
Introduction.
The need for immediate profit is not a pressure. The product is promoted to create
awareness. If the product has no or few competitors, a skimming price strategy is
employed. Limited numbers of product are available in few channels of distribution.
Growth.
Competitors are attracted into the market with very similar offerings. Products become
more profitable and companies form alliances, joint ventures and take each other over.
Advertising spend is high and focuses upon building brand. Market share tends to
stabilise.
Maturity.
Those products that survive the earlier stages tend to spend longest in this phase. Sales
grow at a decreasing rate and then stabilise. Producers attempt to differentiate products
and brands are key to this. Price wars and intense competition occur. At this point the
market reaches saturation. Producers begin to leave the market due to poor margins.
Promotion becomes more widespread and use a greater variety of media.
Decline.
At this point there is a downturn in the market. For example more innovative products are
introduced or consumer tastes have changed. There is intense price-cutting and many
more products are withdrawn from the market. Profits can be improved by reducing
marketing spend and cost cutting.
Problems with Product Life Cycle.
In reality very few products follow such a prescriptive cycle. The length of each stage
varies enormously. The decisions of marketers can change the stage, for example from
maturity to decline by price-cutting. Not all products go through each stage. Some go from
introduction to decline. It is not easy to tell which stage the product is in.
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TQM
At its core, Total Quality Management (TQM) is a management approach to longterm success through customer satisfaction.
In a TQM effort, all members of an organization participate in improving processes,
products, services and the culture in which they work.
A core concept in implementing TQM is Deming’s 14 points, a set of management
practices to help companies increase their quality and productivity:
1.
2.
3.
4.
Create constancy of purpose for improving products and services.
Adopt the new philosophy.
Cease dependence on inspection to achieve quality.
End the practice of awarding business on price alone; instead, minimize total
cost by working with a single supplier.
5. Improve constantly and forever every process for planning, production and
service.
6. Institute training on the job.
7. Adopt and institute leadership.
8. Drive out fear.
9. Break down barriers between staff areas.
10. Eliminate slogans, exhortations and targets for the workforce.
11. Eliminate numerical quotas for the workforce and numerical goals for
management.
12. Remove barriers that rob people of pride of workmanship, and eliminate the
annual rating or merit system.
13. Institute a vigorous program of education and self-improvement for everyone.
14. Put everybody in the company to work accomplishing the transformation.
The term “Total Quality Management” has lost favor in the United States in recent
years: “Quality management” is commonly substituted. “Total Quality Management,”
however, is still used extensively in Europe.
Strengths, Weaknesses, Opportunities and Threats
(SWOT).
SWOT analysis is a tool for auditing an organization and its environment. It is the
first stage of planning and helps marketers to focus on key issues. SWOT stands for
strengths, weaknesses, opportunities, and threats. Strengths and weaknesses are
internal factors. Opportunities and threats are external factors.
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In SWOT, strengths and weaknesses are internal factors.
A strength could be:
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Your specialist marketing expertise.
A new, innovative product or service.
Location of your business.
Quality processes and procedures.
Any other aspect of your business that adds value to your product or service.
A weakness could be:
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Lack of marketing expertise.
Undifferentiated products or services (i.e. in relation to your competitors).
Location of your business.
Poor quality goods or services.
Damaged reputation.
In SWOT, opportunities and threats are external factors.
For example:
An opportunity could be:
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A developing market such as the Internet.
Mergers, joint ventures or strategic alliances.
Moving into new market segments that offer improved profits.
A new international market.
A market vacated by an ineffective competitor.
A threat could be:
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A new competitor in your home market.
Price wars with competitors.
A competitor has a new, innovative product or service.
Competitors have superior access to channels of distribution.
Taxation is introduced on your product or service.
A word of caution - SWOT analysis can be very subjective. Do not rely on SWOT too much.
Two people rarely come-up with the same final version of SWOT. TOWS analysis is extremely
similar. It simply looks at the negative factors first in order to turn them into positive factors.
So use SWOT as guide and not a prescription.
Simple rules for successful SWOT analysis.
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Be realistic about the strengths and weaknesses of your organization when conducting
SWOT analysis.
SWOT analysis should distinguish between where your organization is today, and
where it could be in the future.
SWOT should always be specific. Avoid grey areas.
Always apply SWOT in relation to your competition i.e. better than or worse than your
competition.
Keep your SWOT short and simple. Avoid complexity and over analysis
SWOT is subjective.
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Once key issues have been identified with your SWOT analysis, they feed into marketing
objectives. SWOT can be used in conjunction with other tools for audit and analysis, such as
PEST analysis and Porter's Five-Forces analysis. So SWOT is a very popular tool with
marketing students because it is quick and easy to learn. During the SWOT exercise, list
factors in the relevant boxes. It's that simple. Below are some FREE examples of SWOT
analysis - click to go straight to them
SWOT Analysis Examples
Example 1 - Wal-Mart SWOT Analysis.
Strengths - Wal-Mart is a powerful retail brand. It has a reputation for value for money,
convenience and a wide range of products all in one store. Weaknesses - Wal-Mart is the
World's largest grocery retailer and control of its empire, despite its IT advantages, could
leave it weak in some areas due to the huge span of control. Opportunities - To take over,
merge with, or form strategic alliances with other global retailers, focusing on specific
markets such as Europe or the Greater China Region. Threats - Being number one means that
you are the target of competition, locally and globally.
Example 2 - Starbucks SWOT Analysis.
Strengths - Starbucks Corporation is a very profitable organization, earning in excess of $600
million in 2004. Weaknesses - Starbucks has a reputation for new product development and
creativity. Opportunities - New products and services that can be retailed in their cafes, such
as Fair Trade products. Threats - Starbucks are exposed to rises in the cost of coffee and dairy
products.
Example 3 - Nike SWOT Analysis.
Strengths - Nike is a very competitive organization. Phil Knight (Founder and CEO) is often
quoted as saying that 'Business is war without bullets. 'Weaknesses - The organization does
have a diversified range of sports products. Opportunities - Product development offers Nike
many opportunities. Threats - Nike is exposed to the international nature of trade.
Example 4 - Indian Premier League (IPL) SWOT Analysis.
Where will you find the Mumbai Indians, the Royal Challengers, the Deccan Chargers, the
Channai Super Kings, the Delhi Daredevils, the Kings XI Punjab, the Kolkata Knight Riders
and the Rajesthan Royals? In the Indian Premier League (IPL) - the most exciting sports
franchise that the World has seen in recent years, with seemingly endless marketing
opportunities (and strengths, weaknesses and threats of course!).
Example 5 - Bharti Airtel SWOT Analysis.
Weaknesses - An often cited original weakness is that when the business was started by Sunil
Bharti Mittal over 15 years ago, the business has little knowledge and experience of how a
cellular telephone system actually worked. So the start-up business had to outsource to
industry experts in the field.
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Just in time production (JIT)
Just in time is a ‘pull’ system of production, so actual orders provide a signal for when
a product should be manufactured. Demand-pull enables a firm to produce only what
is required, in the correct quantity and at the correct time.
This means that stock levels of raw materials, components, work in progress and
finished goods can be kept to a minimum. This requires a carefully planned
scheduling and flow of resources through the production process. Modern
manufacturing firms use sophisticated production scheduling software to plan
production for each period of time, which includes ordering the correct stock.
Information is exchanged with suppliers and customers through EDI (Electronic
Data Interchange) to help ensure that every detail is correct.
Supplies are delivered right to the production line only when they are needed. For
example, a car manufacturing plant might receive exactly the right number and type
of tyres for one day’s production, and the supplier would be expected to deliver them
to the correct loading bay on the production line within a very narrow time slot.
Advantages of JIT
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Lower stock holding means a reduction in storage space which saves rent and
insurance costs
As stock is only obtained when it is needed, less working capital is tied up in
stock
There is less likelihood of stock perishing, becoming obsolete or out of date
Avoids the build-up of unsold finished product that can occur with sudden
changes in demand
Less time is spent on checking and re-working the product of others as the
emphasis is on getting the work right first time
Disadvantages of JIT
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There is little room for mistakes as minimal stock is kept for re-working faulty
product
Production is very reliant on suppliers and if stock is not delivered on time, the
whole production schedule can be delayed
There is no spare finished product available to meet unexpected orders,
because all product is made to meet actual orders – however, JIT is a very
responsive method of production
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TASKS:
A) Translate:
1. Už jsi četl, že Google hodlá převzít Facebook?
2. Téměř všechny výrobky mají omezený životní cyklus a jednoho dne se stanou
zastaralými a nebudou dost konkurenceschopné.
3. Jestliže vás konkurenti dohánějí, měli byste přijít s nějakým novým návrhem,
abyste zůstali o krok před nimi.
4. Všichni zaměstnanci v této firmě potřebují školení ohledně toho, jak jednat se
zákazníky.
5. Trh je naplněný a je nutné rozšiřovat sortiment.
B) Match one phrase from the first column with another from the second one to make
business collocations:
key
budget
move
break
saturated
product
Managing
marketing
face
downmarket
lifecycle
airline
Director
competition
customer
strategy
even
market
C) Answer the questions:
1. Explain the difference: overtake x take over
2. Explain the abbreviations: TQM, SWOT, JIT, PLC and comment on them.
3. What are the two meanings of the word competitive?
4. Explain the difference: blue-collar worker x white-collar worker
5. Give examples of how a company can diversify.
6. What can companies do to stay ahead of their competitors?
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