Strengths. Weaknesses. Opportunities. Threats. The S.W.O.T. Analysis Strengths. Weaknesses. Opportunities. Threats.

A framework used for analysis The S.W.O.T. Analysis

The S.W.O.T. Analysis A framework used for analysis Organizes facts and info into categories The S.W.O.T. Analysis

The S.W.O.T. Analysis A framework used for analysis Organizes facts and info into categories Can be used to analyze a company, economy, country – even sports teams The S.W.O.T. Analysis

The S.W.O.T. Analysis A framework used for analysis Organizes facts and info into categories Can be used to analyze a company, economy, country – even sports teams Assesses the organization in terms of its environment The S.W.O.T. Analysis

The S.W.O.T. Analysis A framework used for analysis Organizes facts and info into categories Can be used to analyze a company, economy, country – even sports teams Assesses the entity in terms of its’ environment Should be completed before making decisions about product development The S.W.O.T. Analysis

The S.W.O.T. Chart Looks Like This… Positive Negative Strengths Weaknesses Opportunities Threats Internal Factors External Factors

Strengths Weaknesses Opportunities Threats Positive Negative Strengths Weaknesses Internal characteristics of the business that give it an advantage over others in the industry Internal characteristics that place the firm at a disadvantage relative to others Opportunities Threats external chances to make greater sales or profits in the environment external elements in the environment that could cause trouble for the business. Internal Factors External Factors

Strengths & Weaknesses Internal factors affect the operation of the business Strengths & Weaknesses

Strengths & Weaknesses Internal factors affect the operation of the business They are either positive or negative Strengths & Weaknesses

Strengths & Weaknesses Internal factors affect the operation of the business They are either positive or negative They are analyzed according to the “3C’s” Company Consumers Competition Strengths & Weaknesses

Company What is the mission of the company? How experienced is the company? What is the quality of staff? Is staff trained effectively? How effective is its sales force? Has the company been profitable? Are sales trending up or down? Company

Is the development team creating successful new products? How are pricing strategies working? How is the company positioned in the marketplace? Are promotional strategies effective? What is the company’s image and reputation? Do products easily reach consumers? Company cont’d

Consumers Who are the customers? What, where, when and how much do they buy? How do customers rate the business on quality/service? Are there any customer segments not having their needs met? Is the size of the customer base increasing or decreasing? Consumers

Competition Does the company have a strong market share position? What advantages does this company have over its competition? Are its advantages sustainable or non- sustainable? Competition

Lays example (Internal): Strengths Lays has a long history, and is an established brand with consumers 96% of the Canadian population shows high brand awareness High 'household usage' 70% of households report buying Lays Lays offers a wide range of flavours that meet the needs of its consumers Lays has a strong distribution system Its sales force manages the shelves It is found in many locations in Canada Lays is a very profitable brand Lays, as a brand, is held in high regard by its consumers

Lays example (Internal): Weaknesses: Lay's packaging is non-recyclable Lay's is a fried food Lays does not enjoy very high market share in Western Canada 70% national market share, 58% in Western Canada Lay's consumers are not as brand loyal as hoped

Opportunities and Threats External factors that affect the operation of the business Consider our competition. Is the competition doing anything that poses a threat to our company or provides an opportunity to us? Are there any changes in laws that pose a threat or provide an opportunity to us? “Do Not Call” registry, downloading music, nutritional information laws Are consumers changing in terms of their behaviour, attitudes, lifestyles and will this pose a threat or provide an opportunity for our company? greater ethnic diversity, trends toward healthier living Opportunities and Threats

Opportunities and Threats External factors that affect the operation of the business Consider changing technology. What threats are posed? What opportunities are created? What is the state of the economy right now? Consider: Are we in good economic times, or trending toward a recession? Are consumers confident? Are they spending money? Opportunities and Threats

Lays example (External):  

Lays example (External): Threats Government regulations are coming through (lowering snack foods in schools, nutritional content labelling) Future government regulations are possible (e.g. banning advertising of snack foods to children) There is an obesity crisis in North America Rising awareness of additives and issues with preservatives; consumers perceive chips to be very bad in this area Increased competition from value brands (e.g no- name) - consumers are more price-conscious than ever

Lays example (External): Health studies released in February 2009 that links a chemical in burned chips to cancer Growing age of population - why is this a threat? Consumers are increasingly concerned about where its food comes from (source of raw materials and supplies) Consumers are more concerned about the environment than ever Consumers are less brand loyal to flat potato chips than to Ruffle style chip Competition such as No-name are offering price competitive advantage to consumers Competition such as Old Dutch is stealing market share from Lay's

Now it’s your turn, try to make a SWOT Analysis for the Pan Am Games Positive Negative Strengths Weaknesses Opportunities Threats Internal Factors External Factors

Pan-Am Games David Peterson Interview Not everything on time and on budget?