SWOT Analysis

What is SWOT Analysis?

Strength
s

SWOT
Oppurtuni
ty
Analysis

Threa
ts

Weakne
ss

Acronym for
Strengths,
Weaknesses,
Opportunities, and
Threats.
Technique is credited to
Albert Humphrey who
led a research project
at Stanford University
in the 1960s and
1970s.
Planning tool used to
understand Strengths,
Weaknesses,
Opportunities,
&
Threats involved in a
project / business.
Technique that enables
a group / individual to
move from everyday
problems / traditional
strategies to a fresh
perspective.

What is SWOT?
SWOT is a business or
strategic planning technique
used to summarise the key
components
of
your
strategic environments.

Introduction
SWOT
analysis
(strengths,
weaknesses,
opportunities,
and
threats analysis) is a framework for
identifying and analyzing the internal
and external factors that can have an
impact on the viability of a project,
product, place or person.

SWOT Analysis
SWOT is a summary of your

Strengths
Weaknesses
Opportunities
Threats

Interna
l
Externa
l

Internal vs. External

Strengths
and
Weaknesses
are
considered internal factors---meaning you
as the business owner can control them.
How you manage or market the business
controls whether it is a strength or weakness
Opportunities and Threats are considered
external factors---meaning you have little
control over them.
It is your job as a
business owner to respond appropriately .

SWOT analysis examines four elements

Strengths - internal attributes and resources that

support a successful outcome.

Weaknesses - internal attributes resources that

work against a successful outcome.

Opportunities - external factors the project can

capitalize on or use to its advantage.

Threats - external factors that could jeopardize the

project.

What is SWOT Analysis?

STRENGTHS
Characteristics of the
team that give it an
others in the industry.

business
advantage

or a
over

Positive tangible and intangible attributes,

internal to an organization.
Beneficial aspects of the organization or
the capabilities of an organization, which
includes human competencies, process
capabilities, financial resources, products
and services, customer goodwill and brand
loyalty.
Examples -, Well-known brand name,,
Lower costs [raw materials or processes],
Superior
management
talent,
Better
marketing skills, Good distribution skills,
Committed employees.

What is SWOT Analysis?

WEAKNESSES

Characteristics that place the

firm at a disadvantage relative
to others.
Detract the organization from its
ability to attain the core goal and
influence its growth.
Weaknesses are the factors which do
not meet the standards we feel they
should meet. However, sometimes
weaknesses are controllable. They
must be minimized and eliminated.
Examples - Limited financial resources,

Limited distribution, Higher costs, Outof-date products / technology, Weak

market image, Poor marketing skills,
Limited management skills.

What is SWOT Analysis?

OPPORTUNITIES
Chances to make greater profits in the
environment - External attractive factors that
represent the reason for an organization to
exist & develop.
Arise when an organization can take benefit
of conditions in its environment to plan and
execute strategies that enable it to become
more profitable.
Organization should be careful and
recognize the opportunities and grasp
them whenever they arise. Opportunities
may arise from market, competition,
industry/government and technology.
Examples - Rapid market growth,
Changing customer needs/tastes, New
uses for product discovered, Economic
boom, Sales decline for a substitute
product .

SWOT
ANALYSIS
- THREATAnalysis?
What
is SWOT

THREATS
External elements in the environment
that could cause trouble for the
business - External factors, beyond an
organizations control, which could
place the organizations mission or
operation at risk.
Arise when conditions in external
environment jeopardize the reliability
and profitability of the organizations
business.
Examples - Entry of foreign competitors,
Changing customer needs/tastes, Rival
firms, adopt new strategies, Increased
government
regulation,
Economic
downturn.

How to conduct SWOT

Analysis?

Tips & Exercise

EXAMPLE

Mc Donalds SWOT Analysis

Tips & Exercise

Mc Donalds
SWOT Analysis

INTERNAL

STRENGTHS

WEAKNESSES

Community oriented
Global operations all over the world
Cultural diversity in the foods
Excellent location
Assembly line operations.

High training costs due to high turnover.

Not much variation in seasonal products .
Quality concerns due to franchised
operations.
Focus on burgers / fried foods not on
healthier
options for their customers.

OPPORTUNITIES

THREATS

Opening more joint ventures.

Being more responsive to healthier
options.
Expanding on the advertising on being
more socially responsible
Expansions of business into newly
developed
parts of the world.

Marketing strategies that entice people

from
small children to adults.
Lawsuits for offering unhealthy foods.
The vast amount of fast food
restaurants that
are open as competition..
Down turn in economy affecting the
ability to eat
that much.

EXTERNAL

SWOT analysis of
Dominos

STRENGTHS

Brand Recall:High brand recall due to its regular advertising with taglines
such as 30 minutes nahi to free. Such aggressive marketing has created
awareness & a promise for the brand in the market.
Fantastic channel network:With its 9000 franchise & company owned
outlets Dominos has extensive network spread over more than 60 countries.
Quick service & deep menu:Quicker than expected service delights the
consumers and helps the company toitself from others. In India Dominos is
trying to attract the middle class and lower middle class people who are
interested to spend their money on pizza but in low price. Those people are
eager to go for an outing in any festival and want cheap and best family
restaurant. Dominos would be most preferable.
Low cost alternative:They do not need high class Ambiance or amusement
in the shop so the establishment cost is low for the dealers and the price of
pizza is very reasonable for the customers.
Healthier alternatives:To combat health awareness among consumers,
Dominos is trying to change their dough by having healthier fats, which is
done by incorporating more whole wheat into their crusts. The pizza toppings
are also becoming healthier, and some pizzerias are introducing salads into
their menus.
2008 -supply
2012
Efficient supply chain:Due Copyright
to its efficient
chain Dominos has made it
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customers dont have to wait for long. The
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WEAKNESSES

Operations:Largenumberoffranchisedoutletsresultsindifficultyin
handlingoperations.Qualitycontroltoobecomeschallenging.Duetothis,
someoftheDominosoutletsgotclosedaffectingtheimageofthebrand.
Decreasing sales in mature markets:Duetoriseinhealthconscious
populationthereisdecreaseinrevenueaffectingthebusinessasawhole.
Low staff retention:Highattritionduetotheabsenceofpropertraining&
developmentisamajorchallengeforDominos.Plusthemanpower
employedisalsounskilledsotheyquicklychangejobswhentheycannot
adjusttothehecticenvironment.
Lesser number of eateries:Dominoshasmoredeliveryoutletstheneating
jointswhichisaproblemespeciallyinplaceslikemallsandotherlocations
whereclearlycustomerswantasittingplace

Opportunities
Market Expansion:Expanding to the developing markets will be
beneficial as far as Pizza industry is concerned, as developed
markets are maturing. Targeting the developing economies
should be the future strategy of the company.
Penetration:Strengthening its outlet network by further
penetrating the current market will help Dominos to increase its
revenues.
Health conscious eatables:Introducing health conscious menu
with new flavor additives which is low in fat will result in
increasing it revenues in future.
Restaurants:By introducing exclusive Dominos restaurants in
cream areas will help the brand with more brand recognition and
will also help in getting the customers who like to eat outside in
plush restaurants.
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THREAT

Direct and Indirect Competition:Intensivecompetitionfromthelocal&

nationalplayerslikePizzahut,USpizzaandmore.Infact,Indirect
competitionismorefromthelikesofMcDonaldsandKFCwherein
customerspreferburgersoverpizza.
Changing Consumer Eating habits:Withgovernment&NGOs
concentratingmoreonhealthawareness,peoplearebecomingmoreaware
ofwhattoconsume&whattoavoidwhichisaffectingthebusinessof
Dominos.
Cost:Asthecostofvegetablesandrawmaterialsrises,thecostof
maintainingthepizzachainalsogoesup.Plus,competitionaffectsthe
bottomlineofthecompany.Thusmanagingthecashflowbecomes
difficult.

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SWOT analysis of KFC

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Strength in the SWOT

analysis of KFC

Global Presence:KFCistheworlds2ndlargestrestaurantchainwithmorethan18,000KFC
outletsin120countriesandterritoriesaroundtheworld.ItismarketleaderinNon-vegfood
jointscategoriesinmajorityofcountriesitisin.
Strong parent company:ItisthesubsidiaryofYum!Brands,arestaurantcompanythatalso
ownsthePizzaHutandTacoBell.Yum!Brands,thefortune500company,isoneofthe
worldslargestfastfoodrestaurantcompaniesintermsofsystemunitsmorethan41,000
restaurantsaroundtheworldinover125countries&ithelpindividualbrandsinoptimizing
itsresourceusage.
Veg & Non veg offerings:AlthoughKFCisknownforitsfingerlickingChickensmenubut
recentlytheyventuredoutinVegetariancategorywhichishelpingtheminincreasingtheir
business&attractingbothveg&non-vegpreferredcustomers.
Secret Recipe:SandersOriginalRecipeof11herbsandspicesisoneofthemostfamous
tradesecretsinthecateringindustry.Acopyoftherecipe,signedbySanders,isheldinsidea
safeinsideavaultinKFCsLouisvilleheadquarters,alongwithelevenvialscontainingthe
herbsandspices.
.
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Weaknesses in the SWOT

analysis of KFC
Unhealthy fats:Useofunhealthyfats&
unhygieniccaloriesiscreatingproblemforthe
fastfoodchainstowhichKFCisnotan
exception.
Managing franchisees:Franchiseemanagement
isoneofthecriticalissuesinthesuccessofthe
fastfoodchainsandduetoconflictingoperational
issuesbetweenKFCanditsfranchiseesmanyof
itsoutletsgotclosedsinceitsinception.
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Opportunities in the SWOT

analysis of KFC

Market expansion:Emergingeconomiesandtheirchanginglifestyleresultinginto
moreofoutingswithfamily/friends,corporatepartieswillresultinthehighgrowthof
theindustry.Furthermore,thepresenceandpopularityofMcDonaldsisanytimemore
dauntingforKFC.
Specializing into vegetarian Menu:AlthoughKFCrecentlyenteredinvegetarianfast
foodcategorybuttheyhavelimitedmenuitemsascomparedtootherchainslike
subway,Pizza-hut,MacDonalds,whoarealreadyanestablishedplayerinthe
segment.SospecializingintoVeg.itemsliketheyhaveinNon-Vegwillhelpthe
companyinitsoverallglobalgrowth.
Rise in health conscious population:Designingitsmenuforthehealthconscious
populationwillbethedrivingforceforthewholeindustryinthefuturebecausedueto
changinglifestylepeoplearegettinglesstimeforthemselvesduetowhichhealth
issuesareraising.
Penetration:Strengtheningitsoutletnetworkbyfurtherpenetratingthecurrent
marketwillhelpKFCinincreasingitsrevenues&becomeno.1playerinfastfood
chainmarketgiventhatnowtheyhavepresenceinbothVeg.&Non-Veg.menuinthe
selectedmarket
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Threats in the SWOT analysis of

KFC

Competition:KFCisnotaleaderinthefastfoodchainindustrysoithas
tocompetewithallotherwellestablishedfastfoodcompanieswhoallare
flourishinginthemarket.
Changing Consumer Eating habits:Withgovernment&NGOshealth
awarenesscampaignspeoplearebecomingmoreawareofwhatto
consume&whattonotwhichisaffectingthebusinessoffastfood
Industryasawhole.
Raw Material prices:Riseintherawmaterialpricesmayaffectthe
industry,ofwhichKFCbusinessisnotanexception.
Closure of current Franchisees:Riseinchannelconflictresultinginto
closingofthefranchiseesisaffectingitsbrandimage&resultinginto
negativewordofmouth

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Facebook

Strengths AlltheintegratedfeaturesofWeb2.0inoneroofisthemost
strengtheningfactorforFacebook.ThehugefanbaseforFacebookandthe
migratingusersofothersocialnetworkingsiteslikeorkutetchasproved
thatFacebookhasmorenutrientsneededforYOUTH.
TheLIKEbuttonisonefeaturewhichmakespeopleLOVEFacebookand
isprobablythereasonwhyuserscommentanddebateoverstatus
messages,photos,videosandwhatnot!ItsactiveintegrationofFacebook
appwithalmostallwebsitesandmobileapplicationsmakesitstrongerand
feelstheusertohavemorebondingtoFacebookthanothersites.
WiththedevelopersoptionsandFacebookpages,itbecomesaperfect
marketingplatformforbothsmallaswellaslargebusinesses.

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 Weakness Authentication of users is a real

problem with respect to any social network sites,
and Facebookis not an exemption. There are
more fake users in Facebookand the fact that
users must be aware of managing his/her
contents from hackers. Cyber crimes are of
serious threats to the user as well as it might
result in fading popularity of FB. The minimum
joining age is just 13 yrs which is not an optimum
age for students to join Facebook.Of course, the
birthdate can always be manipulated. Something
which all sites lack

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Opportunities The revenue of sales has increased as per

statistical report released by Facebookto 158% growth in 2010.
Facebook has collaborated with Microsoft for serving banner
advertising, and apart from it, there are several ads being
showcased on Facebook. Lot of companies which have understood
the increasing impact of Facebook on internet users have decided
to allocate marketing budget for internet marketing.
In that Facebookshares the top priority compared to other
networking sites. Making parallel side by side business lines such
as linkedin / Afaqs can become a very good opportunity for
Facebook.
However, making such changes might also affect the overall
positioning and therefore any opportunity for Facebook needs to
be planned and any new internet technology needs to be updated
on Facebook.
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 Threats Asalreadysaidincreasingcybercrimeand
impersonationhasincreasedbecauseofusersnegligencein
managingtheircontents.
Anythinginmarketissubjectedtochangeanduserswill
naturallyloseinterestandsomeothertechnologyorsocialsite
maytakeoverFacebook.
SoFacebookhastooverlookitselfinnearfutureasexplained
byTheodoreLevitinMarketingMyopia

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