SWOT Analysis

SWOT Analysis

By Lydia Doty-Faulk

Objectives

• Define and distinguish between Strengths, Weaknesses, Opportunities, and Threats.

• Evaluate personal or organizational capabilities honestly to determine current standing.

• Analyze complex situations by breaking them down into actionable quadrants.

• Identify potential obstacles and external factors that could jeopardize goals.

By the end of the lesson, students will be able to:

SWOT Analysis Definition

Strengths
Weaknesses
Opportunities
Threats

​A SWOT Analysis is a process or test used to understand an organization's strengths, weaknesses, opportunities, and threats.

SWOT Analysis Definition

• AKA strategic analysis / situational analysis

• SWOT analyses evaluate and consider both internal AND external factors to the company to create an effective strategy for marketing and future development

• Determines the goals of a company based on their mission statement, which states the purpose of a business's existence.

​A SWOT Analysis is a process or test used to understand an organization's strengths, weaknesses, opportunities, and threats.

​Opportunities	​Threats
​ ​Can business be expanded elsewhere? Can new products or markets be explored? How can new technologies help the company's production and sale?	​ ​What do our competitors do well? Are there any new consumer or market trends that threaten the company? Are there any new federal or state regulations which affect trade or business?

​Strengths	​Weaknesses
​ ​What does the company do best? What is the company known for? What products perform well in the market?	​ ​Where can the company improve? What products or resources are not doing well? Where are the lacking resources in the company?

SWOT Analysis Importance

• SWOT analyses allow businesses to break down the advantages and disadvantages of their operations and explore detailed ways to improve upon both.

​A process or test used to understand an organization's strengths, weaknesses, opportunities, and threats.

Multiple Select

SWOT stands for...

• Strengths

• Weaknesses

• Threats

• Options

• Opportunities

Internal vs. External Factors

Businesses use the SWOT model of analysis to identify four main characteristics of the internal or external factors surrounding their company to make the most educated and logical decisions.

• Internal strengths

• Internal weaknesses

• External opportunities

• External threats

Internal vs. External Factors

Categorize

Options (4)

Strengths

Weaknesses

Opportunities

Threats

Organize these SWOT characteristics by internal or external factors.

Internal

External

SWOT Analysis's Use in Marketing

Situational or strategic analyses are beneficial to businesses because they can:

1. Help identify strengths within the organization where operations are run well

2. Detect weaknesses that need to be improved upon

3. Explore opportunities and threats which may impact the organization.

• Resources, employees, finances, equipment, and other production processes are examined to find areas where the company performs the best and areas where improvement is needed.

• Companies may also look at unique selling propositions (USPs)

  • USPs: practices the company does well, while competitors do not.

• Internal analyses are conducted by asking and answering a number of questions relevant to the goals or vision of the company.

​1. Identify the internal strengths and weaknesses

How to Perform SWOT Analysis

Multiple Choice

Choose the definition that best describes Unique Selling Proposition.

• The competitors making improvements on their issues.

• Something your competitor is very good at, but your company is not.

• Something that your company is very good at, but your competitors are not.

​2. Identify external opportunities and threats that exist outside of the company using Environmental Scanning

How to Perform SWOT Analysis

Environmental Scanning is the collection and interpretation of external data, including:

How to Perform SWOT Analysis

• Company relationships

• Customer demographics

• Business events

• The economy

• Political or technological changes in the market.

It is a tool that accurately helps find positive opportunities or negative threats that a company may encounter in the near-present or distant future.

Multiple Choice

How can we assess internal strengths and weaknesses?

• Asking & completing questionnaires relevant to the goals or vision of the company.

• Analyzing the overall marketing or production environment within a field.

Multiple Choice

What is the FIRST step when producing a SWOT analysis?

• Identify the internal strengths and weaknesses

• Identify the internal opportunities and threats

• Identify the external strengths and weaknesses

• Identify the external opportunities and threats

Multiple Choice

What is the SECOND step when producing a SWOT analysis?

• Identify the internal strengths and weaknesses

• Identify the internal opportunities and threats

• Identify the external strengths and weaknesses

• Identify the external opportunities and threats

• SWOT analyses are typically represented through a chart or table.

• The most basic form of table identifies the SWOT characteristics in a bulleted question and answer list which is broken into four segments.​

Hotspot

Given the following question/characteristic, click on the appropriate SWOT characteristic.

Nike faces patent disputes.

Hotspot

Given the following question/characteristic, click on the appropriate SWOT characteristic.

Nike lacks diversity.

Hotspot

Given the following question/characteristic, click on the appropriate SWOT characteristic.

Nike has additional side brands.

Hotspot

Given the following question/characteristic, click on the appropriate SWOT characteristic.

Nike has new emerging markets in Asia Pacific and Latin America.

Hotspot

Given the following question/characteristic, click on the appropriate SWOT characteristic.

Nike faces counterfeit products.

Hotspot

Given the following question/characteristic, click on the appropriate SWOT characteristic.

Can new products be explored?

Hotspot

Given the following question/characteristic, click on the appropriate SWOT characteristic.

Nike has great brand awareness worldwide.

Are you ready for the Exit Ticket?

The next 5 slides will be multiple choice questions.

Multiple Choice

What is Environmental Scanning?

• When a business scans a competitor's documents.

• A process accomplished by analyzing and understanding environmental conditions.

• A process that analyzes the capacity of your company in order to help you understand your own strengths and weaknesses.

Multiple Choice

Tom works for a large marketing firm and wants to form a new strategy about how his firm should operate. Before forming it, he wants to think about how he could maximize the capacity of his firm in comparison to the economic environment. How should he proceed in doing that?

• By conducting a survey to analyze the strengths and weaknesses of the environment and the opportunities and threats in the company.

• By conducting a SWOT analysis to analyze the strengths and weaknesses of the company and the opportunities and threats in the environment.

Multiple Choice

What question should a business mission statement answer?

• Why a company is in business and what they are trying to accomplish.

• How a company goes to market and increases its revenue.

Multiple Choice

Which of the following would NOT be an external threat to a marketing manager?

• A new competitor.

• New government taxes.

• 
  Government intervention in the industry.

• Poor employee work habits.

Multiple Choice

La Fontaine Marketing is the only company in the world that uses both qualitative and quantitative analysis to create efficient marketing strategies. This method distinguishes them as a leading company in the field of marketing. Their competition works by using either qualitative or quantitative analysis. Why is this an example of a unique selling proposition (USP)?

• Because La Fontaine Marketing's competition failed to research their own analysis methods.

• Because La Fontaine Marketing is the only company using both qualitative and quantitative analysis

You're all done!