A

L
Y
SI
S
Muhammad Akmal Najib
155020301111049
Gilbert Daniel Sihombing
155020301111058
Christine Indah Hartiani
155020301111055
Dinda Nugrahaning Pramesti
155020300111073
Michelle Marcia Abigail Rouli S
155020301111052

CONCEPTUAL FRAMEWORK OF SWOT

ANALYSIS
External
Environmental
Changes

Changes in
Industry
Charateristics

New
Opportunities
and Threat

Key Success
Factors
Strengths
and
Weakness
Resource and
Skill

Formulated,
Implement and
Control Mission
Philosophy,
Policies
Objective and
Strategy of
Organization

IDENTIFICATION OF OPPORTUNITIES
AND THREATS
Change in the global external environment of the fi rm
are the principal source of the current and future
opportunities and threats. External environment is
composed of those trends, events and forces that
are beyond the direct control of management of
the fi rm. There are four segments :
1. Economics
2. Socio-culture
3. Political
4. Technological

l
a
rn me
e
t on
x
E vi r t
n
En

Compa
ny

Political

Socioculture

al
rn e
te nm
Ex iro
v t
En n

Technologic
al

Economics

al
rn e
te nm
Ex viro t
En n

En Ext
vi ern
ro a
nt nm l
e

FACTORS IN EXTERNAL
ENVIRONMENT

EXTERNAL ENVIRONMENT ANALYSIS

The external environment never remains static.

Managers often face the constant problem of
innumerable changes in trends and events and the
impossibility of keeping track of all of them. The key to
making this task managable is to focus only on critical
environment factors, it is trends, events and forces

FORECASTING THE OPPORTUNITIES AND

THREATS IN THE EXTERNAL ENVIRONMENT

Identify the critical environment factors

Monitor the changes globally that appear in the

critical factors
Forecast the cumulative impacts of the critical
environment factors

KEY SUCCESS FACTORS

The key success factors are the most important

element and must be a high priority for the top
management.
The key success factors are diff erent in each industries
but its necessary for all managers to study, evaluate,
and analyze the facts uncovered during SWOT analysis.

IDENTIFICATION OF KEY SUCCESS

FACTORS

Suppli
er
Power

Nature
and
Degre
e of
Comp
etition

Indust
ry
Globali
zation

Industry
Charact
eristics
Buyer
Power

The
Comp
etitive
Power
of
Subtit
utes

Barrier
s to
Entry

NATURE AND DEGREE OF

COMPETITION
The intensity of Rivalry and the compeitions tactics
Competitive rivalrys charcateristics

INDUSTRY GLOBALIZATION
Global companies are the dominant players in the
competitive arena in a global industry
A key attribute of global companies is the ownership
of distribution systems in key foreign markets that
enable cross-subdization, international retaliation,
and world scale volume in pursuit of global brand
dominance and distribution positions.
Studying and Understanding the Pillars
Is the strategy based upon building a global brand?
Is the strategy founded on strong distribution changes in
major world market?
Are competitors taking advantage of economic of scope?
Is competition characterized by cross-subsidization?
How important are economics of scale in cost reduction?

BARRIERS TO ENTRY
Economics of
Scale

The Learning
or Experience
Curve

Government
Policy

Entry is
Capital

Cost
Advantages
independent
of Size
constitute

The reaction
of existing
Competitors

Distribution
Channels

Brand
Identification

Switching
Costs

COMPETITIVE POWER OF
SUBSTITUTE PRODUCTS
An industry should be most concerned about a
substitute industry that is experiencing technological
developments that may improve its price-statisfaction
tradeoff .

BUYER POWER
The buyer group is powerful when :
The buyers are few
The purchased products account for a signifi cant
portion of the total purchases or costs of the buyer
The supplier industrys products are undiff erentiated
and standard
The supplier industrys product is not an important
ingredient
The buyer can purchase the product from any number
of diff erent sellers
When the buyer industry has low profi ts
When there is a threat of backward integration by the
buyers

SUPPLIER POWER
The greater suppliers ability to infl uence the competitive
conditions and profi tability of the industry that purchases
their product, the more powerful them will be.
The supplier is powerful when:
o There are a few large supplier fi rms and many fi rms in the
buying industry
o The supplier industry doesnt have to worry about
competition from substitute products
o The suppliers sell to a number of industries and the buying
fi rms in the industry do not account for a signifi cant portion
of the suppliers total business.
o The suppliers product is an important ingredient in the
success of the buyers manufacturing process or product
quality.
o One or more fi rms in the supplier industry present a credible
threat of forward integration into the buyer industry.

EVALUATION OF A FIRMS
STRENGTHS AND WEAKNESS
It should be noted that a companys strength and weakness is
relative to the particular opportunity or threat that exists the
time, the key success factors that are derived from the
business opportunity under consideration and the
competition.
Evaluation can do by the followings steps
Identify the small number of key success factors
Develop a profi le of fi rms resource and skill
Compare the fi rms resource and skill with the key success
Identify the area of major strengths on which the fi rm can
build a viable strategy to exploit
Compare the fi rms strengths and weakness with the rivals
Isolate the area in which the fi rms resource and skill
signifi cantly stronger or weaker than the competitors