SWOT ANALYSISSWOT ANALYSISby by

Umar 197Umar 197& &

Hasan 145Hasan 145

SWOT ANALYSISSWOT ANALYSISby by

Umar 197Umar 197& &

Hasan 145Hasan 145

Introduction toIntroduction to SWOT SWOT ANALYSISANALYSIS

Introduction toIntroduction to SWOT SWOT ANALYSISANALYSIS

•SWOT means SWOT means STRENGTHS STRENGTHS WEAKNESSES OPPORTUNITIES WEAKNESSES OPPORTUNITIES AND THREATSAND THREATS of the business. The of the business. The analysis of all these above points for analysis of all these above points for

effective function of a business is Known effective function of a business is Known as as SWOT ANALYSISSWOT ANALYSIS..

• It is a strategic planning method used to It is a strategic planning method used to evaluate the Strengths Weaknesses evaluate the Strengths Weaknesses

OpportunitiesOpportunities Threats involved in a project Threats involved in a project or in a business.or in a business.

From where do SWOT come from?

It was founded by Albert S Humphrey in the year 1960-70 at the Stanford Research Institute, Stanford.

SWOT MATRIX

Strategy Strengths Weaknesses Opportunitie

s Win-Win

Approach Loose-WinApproach

Threats Win-LooseApproach

Loose-LooseApproach

From the above matrix we can learn that the loose-loose approach which is due to the Weaknesses and Threats of the firm should be transformed to the Loose-Win Approach by the combination of Opportunities and Weaknesses and further this approach can be changed to Win-Loose approach by the composition of Strengths with the Threats and finally to achieve the desired Goals a proper blend of Strengths and Opportunities Win-Win Approach can be achieved.

What are the Stages in SWOT?

1.SW analysis.2.OT analysis.3.SO analysis.

StrengthsCapabilitiesCompetitive AdvantagesResources, assets and PeopleExperience, knowledge and dataInnovative aspectsPrice, value and quality

WeaknessesGaps in capabilitiesLack of competitive strengthFinanceTimescales, deadlines and pressuresRatio of Cash flow and Cash drain.Continuity, supply chain robustness

OpportunitiesMarket developmentsLifestyle trendsGlobal InfluencesGeographical Import and Export policies.Information and researchPartnerships, agencies and distribution

ThreatsPolitical effectsLegislative effectsEnvironmental factorsCompetitors intentionMarket demandObstacles faced Loss of key staff

Sustainable financial backing

SWOT Model

PositiveFactors

Internal factors

External factors

Negative or

potentialto be

Negative.

Strengths Weaknesses

Opportunities Threats

Uses of SWOT Workshop sessions Brainstorming meetings Problem solving Planning Strategic planning Product evaluation Competitor evaluation Personal development planning Decision making

Advantages of SWOT Facilitates an understanding of the strengths and

weaknesses of the organization Encourages the development of strategic thinking Enables a management team to focus on strengths and

build opportunities Can enable and organization to anticipate future

business threats and take action to avoid or minimize their impact

Can enable an organization to spot business opportunities and exploit them fully.

Flexible.

Disadvantages of SWOT

Some users over simplify the amount of data used for decisions-it is easy to use scant data.

To be effective this process needs to be undertaken on a regular basis.

Access to quality internal data sources, this can be time consuming and political difficult

The pace of changes makes it increasingly difficult to anticipate developments that may affect and organization in the future.

The risk of capturing too much data is that is may make it difficult to see the wood for the trees and lead to ‘paralysis by analysis’

Lacks detailed structure- so easy to miss key elements

SAMSUNG AND NOKIASTRENGTH OF SAMSUNG:

• NEW PRODUCT CONCEPT TO ROLLOUT IN FIVE MONTHS

• CATCHING THE PULSE OF THE CUSTOMER• OFFERING GOOD DESIGN AND

UNDERSTANDING EMOTIONS • HEAVY INVESTMENT IN TECHNOLOGY AND

PRODUCT DESIGN

STRENGTH OF NOKIA:

• STRENGTH OF THE CORPORATE BRAND • COMPETITIVE POSITIVE DESIGN• THE BRANDING AND THE TECHNOLOGY BACKWARDS

COMPATABILITY • PROTECTION FROM THE JAPANESE ONSLAUGHT

LENDING PERSONALITY TO ITS PRODUCTS • EFFECTIVE ADVERTISEMENT AND MARKET

COMMUNICATION • NOT ONLY A TOOL FOR BUSINESS BUT A EVERYDAY

CONVENIENCE TOOL

WEAKNESSES OF SAMSUNG:

• NO PRO ACTIVELY COMING OUT WITH NEWER MODELS

• LACK IN PRODUCT DIFFERENTIATION • DIFFERENT MODELS AT DIFFERENT

PRICE POINTS FOCUS ON MASS MARKET INSTEAD OF NICHE MARKETS

• NOT VERY USER FRIENDLY DESIGNS

WEAKNESSES OF NOKIA:

• LAPSE HAS OPENED UP SPACE FOR SMALLER COMPETITORS

• POTENTIAL THREAT FROM MICROSOF’S ENTRY INTO MOBILE TELEPHONY

• ERICSON- KING OF WIRELESS INFRASTRUCTURE DESIGN TO MARKET TAKES MORE TIME

OPPORTUNITIES OF SAMSUNG:

• DISTINGUISH ITS SERVICE FROM COMPETITORS

• OFFER PRODUCT VARIATIONS DEMAND FOR CELL PHONES DRIVEN BY THE SERVICE PROVIDERS OR CARRIERS TIR UP WITH SERVICE PROVIDERS LOWERING THE PRICE OF THE PHONE BY JUST $20 IN MANY COUNTRIES COULD INCREASE ITS AFFORDABILITY BY 43%

OPPORTUNITIES OF NOKIA:

• HIGHEST GROWTH IN THE MARKET SUCH AS CHINA AND LATIN AMERICA FEATURE LOADED PHONES TO ACT AS AN OFFSET PROVIDING VALUE AT REASONABLE LIFE TIME COST LIFE STYLE MARKETING AND SEGMENTATION BUILDING A WORLDWIDE SUPPLIER NETWORK PREEMPTING COMPETITORS IN CRITICAL MARKETS MANAGING COMPETITIVE INTERACTION

THREATS OF SAMSUNG:

• MOTOROLA’S DOMINANCE IN THE U.S.• NOKIA’S POPULARITY IN THE EUROIAN

MARKET CONTROLING MORE THAN HALF OF THE WORLD MARKET

• AGGRESSIVE COMPETITORS INCLUDING SONY ERICSON AND SIEMENS EATING INTO ITS SHARE

THREATS OF NOKIA:

• BIGGEST THREAT – “COMPLACENCY” “INFLECTION POINT” – A DISRUPTIVE TECHNOLOGICAL CHANGE

• NEW COMPETITORS DIFFERENT SKILSS AND POTENT BRANDS CHALLENGE 3G WILL INCREASING COMPETITION BETWEEN SUPPLIERS CHEAPER MIDRANGE MODELS FROM MOTOROLA AND OTHERS

CONCLUSION

THE VALUE OF SWOT LIES MAINLY IN THE FACT THAT IT CONSTITUTES A SELF ASSESSMENT FOR MANAGEMENT. THE PROBLEM, HOWEVER IS THAT THE ELEMENT APPEARS DECEPTIVELY SIMPLE. ACTUALY DECIDING WHAT THE STRENGTHS AND WEAKNESSESS OF THE ORGANISATION ARE, AS WELL AS ASSESSING THE IMPACT AND THE PROBABILTY OF OPPORTUNITIES AND THE THREATS IS FAR MORE COMPLEX THAN APPEARS AT FIRST SIGHT. THE INHERENT RISK OF MAKING INCORRECT ASSUMPTIONS WHEN ASSESSING THE SWOT ELEMENT OFTEN CAUSES MANAGEMENT TO PROCRASTINATE HEN IT COMES TO DECIDING BETWEEN VARIOUS STRATEGIC ALTERNATIVES, FREQUENTLY RESULTING IN UNNECCESSARY AND UNDESIRABLE DELAYS.