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O.C.FerrellMichaelD.HartlinemarketingstrategyDevelopingCompetitiveAdvantageandStrategicFocusCHAPTER邢台人才网(Strengths,Weaknesses,Opportunities,Threats)•“Awidelyusedframeworkfororganizingandutilizingthepiecesofdataandinformationgainedfromthesituationanalysis…”•Encompassesbothinternalandexternalenvironments•Oneofthemosteffectivetoolsintheanalysisofenvironmentaldataandinformation5-3EffectivenessofAnalysisToolsExhibit5.15-4MajorBenefitsofSWOTAnalysis•Simplicity•LowerCosts•Flexibility•IntegrationandSynthesis•CollaborationFromExhibit5.25-5CommonCriticismsofSWOTAnalysis•Allowsfirmstocreatelistswithoutseriousconsiderationoftheissues•Oftenbecomesasterileacademicexerciseofclassifyingdataandinformation5-6MakingSWOTAnalysisProductive•StayFocused•SearchExtensivelyforCompetitors•CollaboratewithotherFunctionalAreas•ExamineIssuesfromtheCustomers’Perspective•LookforCauses,NotCharacteristics•SeparateInternalIssuesfromExternalIssuesFromExhibit5.35-7StayFocused•ItisamistaketocompleteonegenericSWOTanalysisfortheentireorganizationorbusinessunit.•WhenwesaySWOTanalysis,wemeanSWOTanalyses.5-8SearchExtensivelyforCompetitors•InformationoncompetitorsisanimportantaspectofaSWOTanalysis.•Lookforallfourtypesofcompetition:–Brandcompetitors–Productcompetitors–Genericcompetitors–Totalbudgetcompetitors5-9CollaboratewithOtherFunctionalAreas•InformationgeneratedfromtheSWOTanalysiscanbesharedacrossfunctionalareas.•SWOTanalysiscangeneratecommunicationbetweenmanagersthatordinarilywouldnotcommunicate.–Createsandenvironmentforcreativityandinnovation.5-10ExamineIssuesfromtheCustomers’Perspective•Todothis,theanalystshouldask:–Whatdocustomers(andnoncustomers)believeaboutusasacompany?–Whatdocustomers(andnoncustomers)thinkofourproductquality,customerservice,price,overallvalue,convenience,andpromotionalmessagesincomparisontoourcompetitors?–Whatistherelativeimportanceoftheseissuesascustomersseethem?•Takingthecustomers’perspectiveisthecornerstoneofawelldoneSWOTanalysis.5-11BreakingDownManagerialClichésintoCustomer-OrientedStrengthsandWeaknessesExhibit5.45-12LookforCauses,NotCharacteristics•CausesforeachissueinaSWOTanalysiscanoftenbefoundinthefirm’sandcompetitors’resources.•Majortypesofresources:-Financial-Organizational-Intellectual-Informational-Legal-Relational-Human-Reputational5-13SeparateInternalfromExternalIssues•FailuretounderstandthedifferencebetweeninternalandexternalissuesisoneofthemajorreasonsforapoorlyconductedSWOTanalysis.•SocraticAdvice:–“Knowthyself”–“Knowthycustomer”–“Knowthycompetitors”–“Knowthyenvironment”5-14TheElementsofaSWOTAnalysis•StrengthsandWeaknesses–ScaleandCostEconomies–SizeandFinancialResources–Intellectual,LegalandReputationalResources•OpportunitiesandThreats–TrendsintheCompetitiveEnvironment–TrendsintheTechnologicalEnvironment–TrendsintheSocioculturalEnvironment5-15SWOT-DrivenStrategicPlanning•Fourissuesthemarketingmanagermustrecognize:1.Theassessmentofstrengthsandweaknessshouldlookbeyondproductsandresourcestoexamineprocessesthatmeetcustomerneeds.Offersolutionstocustomerproblemsinsteadofspecificproducts.2.Achievinggoalsandobjectivesdependsontransformingstrengthsintocapabilitiesbymatchingthemwithopportunities.3.Weaknessescanbeconvertedintostrengthswithstrategicinvestment.Threatscanbeconvertedintoopportunitieswiththerightresources.4.Weaknessesthatcannotbeconvertedbecomelimitationswhichmustbeminimizedifobviousormeaningfultocustomers.5-16•SWOTMatrix–Afour-cellarrayusedtocategorizeinformationattheconclusionofaSWOTanalysis.•Shouldbebasedoncustomerperceptions,nottheperceptionsoftheanalyst.•Elementswiththehighesttotalratingsshouldhavethegreatestinfluenceinmarketingstrategy.•Focusoncompetitiveadvantagesbymatchingstrengthswithopportunities.AnalysisoftheSWOTMatrix5-17TheSWOTMatrixExhibit5.65-18QuantitativeAssessmentofElementsWithintheSWOTMatrixExhibit5.75-19•Strengths,weaknesses,opportunities,andthreats:Whichisthemostimportant?Why?HowmightyourresponsechangeifyouweretheCEOofacorporation?Whatifyouwereacustomerofthefirm?Anemployee?Asupplier?DiscussionQuestion5-20•Competitiveadvantagescanarisefrommanyexternalorinternalsources.•Competitiveadvantagesrefertorealdifferencesbetweencompetingfirms.•Threebasicstrategiesforcompetitiveadvantage:1.OperationalExcellence2.ProductLeadership3.CustomerIntimacyDevelopingandLeveragingCompetitiveAdvantages5-21•OperationalExcellence–Focusonefficiencyofoperationsandprocesses–Lowercostoperationsleadstolowerpricesforcustomers•ProductLeadership–Excellenceintechnologyandproductdevelopment–Mostadvanced,highestqualityproductofferinginindustry•CustomerIntimacy–Understandingcustomersbetterthanthecompetition–Developlong-termcustomerrelationshipsCompetitiveAdvantageStrategies5-22CommonSourcesofCompetitiveAdvantageFromExhibit5.8·RelationalAdvantages·ProductAdvantages·LegalAdvantages·PricingAdvantages·OrganizationalAdvantages·PromotionAdvantages·HumanResourcesAdvantages·DistributionAdvantages5-23•Supportorcontradictthisstatement:“Giventherealitiesoftoday’seconomyandtherapidchangesoccurringinb