Scribd
Upload
69 views

Swot Analysis (SW - Internal Ot - External) Strength

This document outlines several frameworks for analyzing an organization's internal strengths and weaknesses as well as external opportunities and threats, including: SWOT analysis which examines internal strengths and weaknesses as well as external opportunities and threats. Strengths are resources that provide a competitive advantage, while weaknesses are areas for improvement. Porter's Five Forces analysis which evaluates the bargaining power of suppliers and buyers, threat of substitutes, threat of new entrants, and rivalry among existing competitors. Value chain analysis which examines how primary activities (logistics, operations, marketing etc.) and support activities (procurement, HR etc.) can impact costs and profits. The GE-McKinsey matrix evaluates attractiveness of industry and strength of

Uploaded by

Bernard Fernandez
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
69 views

Swot Analysis (SW - Internal Ot - External) Strength

This document outlines several frameworks for analyzing an organization's internal strengths and weaknesses as well as external opportunities and threats, including: SWOT analysis which examines internal strengths and weaknesses as well as external opportunities and threats. Strengths are resources that provide a competitive advantage, while weaknesses are areas for improvement. Porter's Five Forces analysis which evaluates the bargaining power of suppliers and buyers, threat of substitutes, threat of new entrants, and rivalry among existing competitors. Value chain analysis which examines how primary activities (logistics, operations, marketing etc.) and support activities (procurement, HR etc.) can impact costs and profits. The GE-McKinsey matrix evaluates attractiveness of industry and strength of

Uploaded by

Bernard Fernandez
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
You are on page 1/ 3

SWOT Analysis (SW – INTERNAL; OT – EXTERNAL)

Strength
 Any resource that an organization possesses that is ahead of its competition
 An example can be technology. It must be noted that if everyone is using this certain
technology—and therefore even competitors are using the said technology—there is no
strength.
 Can be a unique resource
 Can also be being highly leveraged against competition
 Can also be people
 Must not be open to interpretation. Such strength must be factual, specific, and clearly
stated.
 Help improve weaknesses in the process of creating competitive advantages
Weakness
 What needs improvement?
 Where do you have fewer resources than others?
 What are other likely to see as weaknesses?
 Hinders competitive advantage
 Example: declining market share by 2%
 Factual, specific, clearly stated 😊
 Specifically stated to clearly visualize the gravity of the problem
o Example: increase in COGS but no increase in Sales
o One-off cost
o Dissatisfied employees as evidenced by a turnover rate of X%

Opportunities
 External to the organization
 We may take advantage of the opportunity. Example, a law (such law must be
specifically stated)
 Clearly state how the situation is an opportunity
Threat
 External to the organization
 Could be detrimental to an organization. Example, law. Lol
 Clearly state how the situation is an opportunity
 Example, the use of technology that we only own can be a strength. Now, if the
competition also has the technology and the company being analyzed does not have the
technology, it is not a weakness, but a threat.
 Example, increasing taxes. One of two solutions can be increasing prices, going along
this road has an effect to the competition, but there is a limit for overpricing may reduce
profits.
Five Forces Analysis (Porter) (INDUSTRY ANALYSIS)
Bargaining Power of Buyers
 When there are many suppliers and buyers have many alternatives, buyers may choose
alternatives (high bargaining power)
 When there is only one supplier, there is low bargaining power. No choice but to buy
from such supplier.
Bargaining Power of Suppliers
 When there are many suppliers, there is competition and therefore I have low bargaining
power as a supplier
 When there is only one supplier (me), I have very high bargaining power as a supplier
Threat of Substitutes
 Substitute goods or services that can be used in place of a company's products or
services pose a threat. Companies that produce goods or services for which there are
no close substitutes will have more power to increase prices and lock in favorable terms.
When close substitutes are available, customers will have the option to forgo buying a
company's product, and a company's power can be weakened.
Threat of New Entrants
 How companies see new entrants (threat or not?)
 Small company is not usually a threat
Rivalry among existing competitors
 Does not exist in a monopoly
 Market leaders
 Look at the competition if it is strong or not
 Center circle – us as a company + how are we compared to the rivalry in the industry
 Internal question: how can we describe the competition?
 4 forces are faced to the center circle for they cause stress to the competition and us as
a company.
 Circular arrow – INTERNAL OUTLOOK of how we would like to see the different factors
affecting us; SELF-ASSESSMENT of how we would like to deal with these forces in the
environment
Value Chain Analysis
 Will it make money? – whatever activity the company will do
 Primary activities and support activities
 Primary activities
o Inbound logistics – how did we choose our supplier? Purchase discounts?
Negotiations with suppliers? Volume discounts (negotiating with 1 supplier rather
than buying from 10, to allow for negotiations for a volume discount)
o Operations – are the operations standardizing the process? Does it increase
profits while lowering cost to produce?
o Outbound logistics – distribution cost reductions to increase profit (ceteris
paribus)
o Marketing and sales
o Services
 Support Activities
o Firm infrastructure
o HRM – training costs lowered, increasing profit
o Information, Comm, Technology – example is using tech to retrieve
information on consumer demand  use information for operations  better
sale projections and demand projections, etc.
 Data is basis for production, etc.
 Poor information flow, poor performance
 No system = low flow of information
 Guides us on our procurement decisions, capacity decisions, etc.
o Procurement – discussed together with inbound logistics (suppliers).
 Are we making profit in this activity?
GE-Mckinsey Matrix
 Vertical Column: is this business attractive in the industry?
o Low = lower portion
o High = higher portion
 Horizontal Row: Business unit strength
o Left = better
o Right = not better

You might also like

pFad - Phonifier reborn

Pfad - The Proxy pFad of © 2024 Garber Painting. All rights reserved.

Note: This service is not intended for secure transactions such as banking, social media, email, or purchasing. Use at your own risk. We assume no liability whatsoever for broken pages.


Alternative Proxies:

Alternative Proxy

pFad Proxy

pFad v3 Proxy

pFad v4 Proxy