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SWOT Analysis(Strengths, Weaknesses, Opportunities, Threats) “A widely used framework for organizing and utilizing the pieces of data and information gained from the situation analysis…” Encompasses both internal and external environments One of the most effective tools in the analysis of environmental data and information Effectiveness of Analysis Tools Major Benefits of SWOT Analysis Simplicity Lower Costs Flexibility Integration and Synthesis Collaboration Common Criticismsof SWOT Analysis Allows firms to create lists without serious consideration of the issues Often becomes a sterile academic exercise of classifying data and information Making SWOT Analysis Productive Stay Focused Search Extensively for Competitors Collaborate with other Functional Areas Examine Issues from the Customers’ Perspective Look for Causes, Not Characteristics Separate Internal Issues from External Issues Stay Focused It is a mistake to complete one generic SWOT analysis for the entire organization or business unit. When we say SWOT analysis, we mean SWOT analyses. Search Extensively for Competitors Information on competitors is an important aspect of a SWOT analysis. Look for all four types of competition: Brand competitors Product competitors Generic competitors Total budget competitors Collaborate with Other Functional Areas Information generated from the SWOT analysis can be shared across functional areas. SWOT analysis can generate communication between managers that ordinarily would not communicate. Creates and environment for creativity and innovation. Examine Issues fromthe Customers’ Perspective To do this, the analyst should ask: What do customers (and noncustomers) believe about us as a company? What do customers (and noncustomers) think of our product quality, customer service, price, overall value, convenience, and promotional messages in comparison to our competitors? What is the relative importance of these issues as customers see them? Taking the customers