In this presentation, we will learn about:•What is SWOT•Who does the SWOT analysis•Why is SWOT necessary•On what factors does the SWOT depends•SWOT analysis of the Italian Republic

with respect to the consumers.

SWOT Analysis• It is important to base Strategic plans on

robust intelligence. This could include using information from performance measurement, research, learning and benchmarking. The SWOT framework provides for an analysis of the internal and external environment and can be used in conjunction with a scan of the external environment (such as PESTLE), in order to evaluate the information gathered. SWOT refers to S – Strengths, W – Weaknesses, O – Opportunities and T – Threats

Who does the SWOT analysis•SWOT analysis is done by business

organisations or firms•Researchers•Analysts•Economists•Market strategists

Why is the SWOT analysis done•To know about the market•To gain knowledge about the changing

market conditions•To know where the firm stands in the

present market scenario•Scope for improvements and the

challenges coming in the near future.•To capitalize on the transitions created in

the market

S W

T

Strengths

• Capital strength• Reputation/image• Brand image• Knowledge• Location • Experience• Resources• Competence, capabilities• Quality,

Opportunities

• Grants/Funding• New Market• Unfulfilled Customer

needs• New Technology• Economic upturn

Threats

• Competitor activity•  Economic downturn•  Increasing regulation•  Declining markets•  Market saturationO

Weaknesses

• Disadvantages• Gap in experience,

knowledge • Financial aspects• Reliability and trust• Loss of key staff• Geographical factors

General SWOT Flowchart

SWOT and the PESTEL

S.W.O

.T. Analysis of the

Italian

Republi

c

(Repubblica Italiana)

1. Multi Party coalition has led to more stability.2. Has been a central force in European integration.3. Founding member of the European Union. It also is a member of NATO and the G-8.4. The top corporate tax rate has been reduced to 27.5 % from 33 %5. The overall freedom to conduct a business is relatively well protected under Italy's regulatory environment.

1. Total government expenditures, including consumption and transfer payments, are very high.2. government spending equaled 50.1 percent of GDP.3. high income tax and a moderate corporate tax. The top income tax rate is 43 percent.4. Problems of corruption, infiltration of political institutions by organized crime have been dominant.

1. More than 20 political parties.2. Positive dependency on sophisticated arrangement of coalitions.3. Average of about one new government per year.4. Awareness against fascism.

1. Right-wing populism2. Active MAFIAS.3. Racism4. Reservation system5. Illegal immigration.

POLITICAL

ECONOMIC FACTORS1. 5th largest industrial economy of the world.

2. An important member of G-8, EU, and OECD.

3. A tourist attraction4. One of the Fashion Hubs of the

world.5. Processing and manufacturing of

goods.6. Leading exporter in apparel

trade.

1. Very few or limited natural resources.

2. Land unsuited for farming and hence imports are huge.

3. Budget deficits and high public debts.

4. GDP is expected to contract further due to the global economic crisis.

5. Expensive labour.

1. World’s 4th largest Gold reserve.2. Better relations with India, U.S. and

China.3. Tourism4. Imports of energy for processing

and manufacturing.5. Investment in global fashion apparel

industry.

1. Uncertainty in the retail sector2. Economic division between the

northern and southern Italy.3. Highly unpredictable market

conditions.4. Low production rate of apparels.5. Increasing Debts.

SOCIAL FACTORSSTRENGTHS• One kind of culture prevalent throughout .

• Catholism hold the whole region together.

• High end Fashion.

• Fashion and luxury as status symbol.

WEAKNESSES

• Rapidly changing fashion.

• Uncertainty in the consumers mind.

• High Crime zone

OPPORTUNITIES• Influence of the subcultures.

• Cuisines and Wines.

• Emerging Music Genres

THREATS• Immigration leading to difference in styles.

• Security and potential threats from terrorists and gangs.

TECHNOLOGICAL FACTORS

• Modern, Advanced, developed, fast and automated country.

• 4th greatest internet host, 10th highest number of internet users, and 11th in terms of cellular operations.

• Chemical and automobile production.

• Manufacturing of apparels.

• Energy and Power.

• Italian expenditure in IT hardware, services and software is one of the lowest in Europe.

• Currently, Italy doesn't have an internal software development market.

• Research and technological aspects are not upto the standards.

• Lack of Natural resources to support the manufacturing processes.

• Good relationships with China.

• Oracle and Microsoft have begun their operations in Italy.

• Blend of technology with the fashion world.

• Lump in the technical field in Italy.

• Other than IT, no other technical field is showing signs of improvement.

• The Global economic downturn is still showing its effect.

ENVIRONMENTAL FACTORS

STRENGTHS

• Geographic location near the sea

• Surrounded by developed countries

• Diversity in culture.

• Fashion sensitive environment.

WEAKNESSES

• Huge industrial wastes

• World’s 10th highest emissions of Carbon-Di-Oxide.

• Problems of Acid-rain and Biomass.

OPPORTUNITES

•To enhance trade relations with the developing African countries like Egypt.•Production of Smart/intelligent clothing which will suit its environmental conditions.• To exploit the northern and the southern division of Italy

• Huge carbon content emissions

• The great division between the northern and southern Italy.

• Surrounded by competitors like France, Germany and Spain.

THR

EATS

LEGAL FACTORS

STRENGTH• Belief in Fascism

• Laws regarding the starting of business are easy.

WEAKNESS• Doesn’t guarantee adequate protection of intellectual rights.

• Reputation of being involved in corruption.

OPPORTUNITIES• Export laws

are not harsh.

• Low duties on Apparel Exports.

THREAT• Smuggling

• Isn’t considered a safe place.

S O• Apparel exports are

high.

• Milan is one of the four fashion hubs in the world.

• A great tourist attraction.

• Rome, Venice, Florence, Milan form the backbone of tourism• Control over the Marine.

• Direct and good trade links with the rest of EU, US, and South Asia.

• Imports of Energy and raw materials can be a beneficial investment

• The prices of Real estate are holding up.

• A great tourist destination often opens the door for a beneficial retailing business.

• Transportation of goods are easy and affordable.

• Always in touch with the world.

Positive factorsSWOT ANALYSIS

W T• Political uncertainty.

• High Income Tax.

• Corruption.

• Technological hault.

• Expensive Labour

• Non availability of natural resources.

• Division between Northern and Southern Italy

• Popular Crime zone

• Unstable Environment

• Increased chances of Smuggling

• Not updated.

• Starting a business can be a headache..

• Direct effect on GDP.

• Chances of Profit attainability is low.

Negative factorsSWOT ANALYSIS

S WO T

SummarySWOT summary

• Though the demand for garments is increasing day by day but the production rate has still not been able to match with the ever rising demand. More production facilities are needed to meet the demand.

• Most of the raw material needed for apparel manufacturing is available in the developing or under developed countries and Italy does not have enough resources and manpower to explore them

• The importers of developed economies are facing very stiff competition as countries like China are producing good quality products in low prices due to availability of very cheap labour. 

• Crime and high income tax are not helping Italy inspite of being a fashion hub. The apparel exports are the only thing which is keeping Italy in the market.

• The democratic system of Italy is also a hindrance.

• Italy is under huge debts from the IMF and the things do not seem to be improving even after post 2010 era.

SWOT ANALYSIS

SUBMITTED BY:

• Shubhangi Agarwal•Ashish Gerawada•Ekta Shah•Tarunendra Pratap Singh•NIFT Bhubaneswar•MFM( 2010-12)