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SWOT Analysis

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WHAT IS SWOT?
Acronym for Strengths, Weakness, Opportunities
and Threats.
Planning tool used to understand Strengths,
Weakness, Opportunities and Threats involved in
a project/ company.
Used as a framework for organizing and using
data and information gained from situation
analysis of internal and external environment.
Technique that enables a group/ individual to
move from everyday problems/ traditional
strategies to a fresh perspective.

CONTINUED..
Started by Albert Humprey
Research project was done at Stanford University (1960)
Humprey and original research team used the categories. What is good in the present is
satisfaction, good in the future. Bad in the present is a fault, and bad in future is a threat.

Internal factors involves are of the following

People, human resources in an organisation.
People and skill, their experience, knowledge
Staff development
Properties like equipment, other facilities
Process like finance etc.
Financial resources, governance
Management/ leadership
Sales, markets, capital strategy, suppliers, consumer market research

External factors involves are of the following

Customer analysis
Competitive analysis
Market analysis
Environmental analysis

STRENGTH
Strong brand image
HIGH quality product
Latest technology
High intellectual capital
Coordinal industrial relations

WEAKNESS
Weak distribution network
Narrow product line
Rising cost
Poor marketing plans

OPPOURTUNITY
New markets
Profitable new acquisition
R & D areas in new areas
New businesses

THREAT
Increase in competition
Barrier to entry
Change in consumer taste
New or substitute products
Threat of takeover

Tows approach:
INTERNAL
EXTERNAL

STRENGTH
(S)

WEAKNESS
(W)

OPPOURTUNITIES
(O)

A strength that use

strength to take
advantage of
opportunities

Strengths or
strategies that take
advantage of
opportunities by
overcoming
weaknesses

THREAT (T)

Strategies that
strength to avoid
the emerging
threats

Strategy or strength
that minimizes
weakness and avoid
threat

AIM OF SWOT ANALYSIS

To help decision makers share and compare ideas.
To bring a clearer common purpose and
understanding of factors for success.
To organize the important factors linked to
success and failure in the business world.
To analyze issues that have led to failure in the
past.
To provide linearity to the decision making process
allowing complete ideas to be presented
systematically.

WHO NEEDS SWOT

ANALYSIS
Job holder:
When supervisor has issues with work output
Assigned to a new job
New financial year-fresh targets
Job holder seeks to improve performance on the job.
Business Unit:
When the team has not met its target
Customer service can be better.
Launching a new business unit to pursue a new business.
New team leader is appointed.
Company:
When revenue, cost and expense targets are not being achieved.
Market share is declining
Industry conditions are unfavorable
Launching a new business venture

CONTD
SWOT analysis is also required for/during
changing jobs
product launch
decision making
personal development planning
product evaluation
brainstorming meetings
workshop sessions

HOW TO CONDUCT SWOT

ANALYSIS?
Analyze internal and external environment
Perform SWOT analysis and document
Prepare action plans

BENEFITS OF SWOT
ANALYSIS

1.Knowing the competition

Reviews a companies competitors and benchmark against them to
configure strategies that will put the company in a competitive
advantage
2. Decision making tool:
Provides well-rounded information that prompt well-formed decisions.
3. Forecasting:
Provides a variety of information critical to for encased variables.
Threats for eg: can impact a business forecast. By understanding the
companys advantages and disadvantages forecast will be pure
accurate.
Besides the broad benefits here are few more benefits of conducting
SWOT analysis:
Helps in setting of objectives for strategic planning
Provides a framework for identifying and analyzing strengths,
weakness, opportunities and threats.
Provides an impetus to analyze a situation and develop suitable
strategies and tactic.
Basis for assessing core capabilities and competencies.

PITFALLS OF SWOT
ANALYSIS
Can be very subjective.
May cause organizations to view circumstances as very
simple due to which certain key strategic contact may be
overlooked.
Categorizing
aspects
as
strengths
,
weakness
,opportunities and threats might be very subjective as
there is great degree of uncertainty in market.
To be effective, SWOT needs to be conducted regularly.
The pace of change makes it difficult to anticipate
developments.
The data use in the analysis may be based on
assumptions that subsequently prove to be unfounded
(good and bad).
It lacks detailed structure ,so key elements may get
missed.

CASE STUDY 1
SUNPHRMA COMPONY
PARENT COMPONY: SUN PHARMA INDUSTRIES
CATEGORY
: PHARMACEUTICAL
SECTOR
: HEALTH CARE
TAGLINE
: LEADERSHIP THROUGH
FOCUSED RESEARCH
USP
: SUN PHARMA IS 5th LARGEST
AND MOST PROFITABLE COMPANY IN INDIA

CONTD
SWOT ANALYSIS
STRENGTH

: - 1. STRONG GROWTH IN EMERGING MARKET

BUSINESS
2. INTRODUCTION OF PANTOPRAZOLE &
ELOXATIN IN US MARKET HAS VERY LIMITED
COMPETITION
3. THEY HAVE STRONG MARKETING & SALES
FORCE OF OVER 12,000 EMPLOYEES
4. THEY HAVE SUCCESFULLY ACQUIRED TARO
PHARMA WHICH HAS FURTHER
CONSOLIDATED THEIR POSITION IN INDIAN
MARKETS
5. STRONG BRAND PRESENCE IN INDIA & US
MARKETS

CONTD..

WEAKNESS:
1. STIFF COMPETITION FROM MANY INDIA &
OTHER GLOBAL BRAMDS MEANS LIMITED
MARKET SHARE GROWTH
2. LIMITED PRESENCE IN EMERGING MARKETS
& EUROPEAN COUNTRIES

CONTD
OPPORTUNITIES:
1. THEY CAN LEVERAGE THEIR ACQUISITIONS
TO FURTHER INCREASE THE GROWTH
2. THEY CAN INCREASE THEIR PRESENCE IN
CONTRACT MANUFACTURING
3. INCREASING HEALTHCARE AWARENESS IN
INDIA

CONTD
THREATS:
1. THERE IS GROWING COMPETITION IN
GENERICS MARKET
2. STRINGENT PATENT REGULATION
3. HIGH PRICE SENSITIVITY OF CONSUMERS
COMPETITOR: CIPLA

CASE STUDY 2
SWOT ANALYSIS ON GOOGLE
It is a privately owned corporate
Google successfully established its brand name in
internet search engines market.
Though Google is a dominating player in internet
searching market, it has to compete with its rivals
in this field where there is no long time entry
barrier.
Google can expand or change its business model
to survive in this best search engine race.

CONTD
STRENGTHS:
1. Already no 1 search engine has established a
brand name, in which its users trust.
2. Its dependable, reliable and fast.
3. Needs very little user marketing as the name
itself is getting words by mouth publicity.
4. It has a simple interface and it gives
comprehensive result without confusing its
users.
5. It has low operation cost.
6. It provides the interface to 88 languages to make
it comfortable to search for users in different
countries.

CONTD
7.

It also weights the votes and ranks web pages

with its technology to give its users access to
most important pages first.
8.
It offers localized search called search by
locations where users can get results showing
various products and services nearby.
9. It is considered among the top 10 brand in the
US.
10. It uses state-of-the-art technology to catalog the
pgs to give most updated outcomes to its
users.

CONTD
WEAKNESSES:
1. Many spammers manipulate googles ranking
technology by creating dummy sites with
thousands of links to pages that they wanted
google to rank highly.
2. Googles cost per click ads charging and ranking
policy is confusing and makes it difficult for
marketer to predict where their ads would be
positioned and how much they would cost.
3. Its localized search also results in errors at times.
4. Although a dominating player, only 50% to 65%
of web search is accurately answered.

CONTD
OPPORTUNITIES:
1. It has a vast opportunity for reaching new groups
and contents.
2. It can merge with an already existing market
portal to cover more grounding regarding its
users

CONTD
THREATS:
1. There is no longtime entry barrier in this business.
2. Many competitors can emerge in coming years
with same services, better interface.
3. Google confusing cost per click ranking and
charging policy could disappoint its advertiser and
company would start losing many of them.
4. Google can get trapped in issues regarding
privacy if it decides to go for highly personalized
search.
5. If Google decides to merge with some already
established company, it will start losing its well
earned brand name.