1. Building value….. ….The SWAT analysis
ValueMathics
Building value…..
….The SWAT analysis

2. CUSTOMER VALUES VALUE CHAIN
The SWAT analysis is a new generation balanced scorecard that uses elements of The Magic Pallet to analyse the potential of a firm or a sector in a given market segment.
It is a confrontation matrix of perceived customer benefits and sacrifices –HORIZONTAL AXE with value chain activities -VERTICAL AXE- of a firm.
CUSTOMER VALUES
PRODUCT
SERVICE
ACCESS
COST
SPEED
IMAGE
TECHNOLOGY
PRODUCTION
VALUE CHAIN
LOGISTICS
MARKETING
SUPPORT

3. “SWAT” stands for….. Sources Winners Alliances Trends
Cost of means, like technical and commercial people, manpower, money, machines and raw materials
“Minds, Money, Manpower, Machines, Materials”
Winners
Core competencies of the firm which create competitive advantages in the value system – “Technology, Production, Logistics, Marketing, Support”
Alliances
Forward or backward alliances with technology providers, marketing companies, logistical service providers and others
Trends
General direction of changes in customer values, like product characteristics, process requirements, delivery and stocking, desired image and service requirements as well as CSR issues – “Product, Access, Speed, Image, Service”

4. TECHNOLOGY PRODUCTION VALUE CHAIN LOGISTICS MARKETING SUPPORT
On the vertical axe, we list the value activities of a firm -the source for competitive advantages –together they constitute the value chain of a firm.
These are the drivers for value creation
PRODUCTION
VALUE CHAIN
LOGISTICS
MARKETING
SUPPORT

5. PRODUCT SERVICE ACCESS SPEED IMAGE TECHNOLOGY PRODUCTION VALUE CHAIN
On the horizontal axe, we list the perceived customer benefits - required product, process and vendor’s benefits in a given buyer’s segment.
PRODUCTION
VALUE CHAIN
LOGISTICS
MARKETING
SUPPORT

6. CUSTOMER VALUES VALUE CHAIN
PRODUCT
SERVICE
ACCESS
COST
SPEED
IMAGE
TECHNOLOGY
COST – “Total Cost of Ownership” is the column for the perceived sacrifices of the customer
Cost of money
Cost of change
Cost of time
Cost of purchasing risk
Cost of conflict
Together, benefits and sacrifices constitute the CUSTOMER VALUES
PRODUCTION
VALUE CHAIN
LOGISTICS
MARKETING
SUPPORT

7. CUSTOMER VALUES VALUE CHAIN
Value chain performance is now confronted with the customer values in a certain market segment.
Hence, the SWAT analysis is an assessment of the product market combination, not a company audit.
CUSTOMER VALUES
PRODUCT
SERVICE
ACCESS
COST
SPEED
IMAGE
TECHNOLOGY
PRODUCTION
VALUE CHAIN
LOGISTICS
MARKETING
SUPPORT

8. CUSTOMER VALUES VALUE CHAIN
The crossroads of rows and colums give us the relevant issues in supply and demand that need to be assessed in the SWAT analysis
PRODUCT
SERVICE
ACCESS
COST
SPEED
IMAGE
TECHNOLOGY
PRODUCT DEVELOPMENT
MATERIALS R&D PROCESS
TIME TO PRODUCTION
TECHNICAL REPUTATION
CO-DESIGN ACTIVITIES
SUPPLIERS FORMULATION
PRODUCTION
PRODUCTION TECHNIQUES
PRODUCTION PROCESSES
SPEED WINDOWS
HOUSEKEEPING AND OHS
PRODUCTION FLEXIBILITY
LABOR COST PRODUCTIVITY
VALUE CHAIN
LOGISTICS
QUALIT OF LOGISTICS
PACKAGING STORAGE
SWIFTNESS OF LOGISTICS
APPEARANCE OF LSP
SPECIAL DELIVERIES
LOGISTICAL COSTS
MARKETING
BRANDING PACKING
LEGAL AND SALES TERMS
RESPONSE TIME ON RFQ
WEBSITE PRINTED
CONVENIENCE OF ORDERING
SALES TERMS DISCOUNTS
SUPPORT
MAINTENANCE INFORMATION
GUARANTEE DATA SHEETS
COMPLAINT HANDLING
COMPETENCE OF PERSONNEL
PERSONAL SERVICES
COST OF SERVICE

9. SWAT - methodology Gather 3-5 persons; 3=minimum, 5 = maximum
one/three persons from the firm; one/two from TPO, client or supplier; one independent expert/facilitator
Fill in the SWAT analysis individually without consultation with other persons
5 or 3 or 1 or -1 or -3 or -5 for scroes per column
Use each number only once, leave blank if no correlation
Add up individual scores for total group results
Add up columns and rows for first assessment
Circle areas of high scores green = USP/CORE COMPETENCIES
Circle areas of low scores red= CHALLENGES/ALLIANCES
Define knock-out criteria and desirable areas per sector/market
Decide on go or no-go for exports
Define corrective actions in the red areas
Construct the business model around the green areas.

10. EXAMPLE 5 3 -5 -1 -3 PRODUCT DESIGN TECHNOLOGY PRODUCTION LOGISTICS
MD-2 variety, oval shape, no spines exept at the leaf tip, clear yellowish colour inside,sweet taste, hard green leaves, equal patches
Is the MD-2 variety available in the country ? Are there certified test faciltities to guarantee the quality of the pineapple? Can ripeness be tested to get the product at the right ripeness on the shelf ?
TECHNOLOGY 5
Is the growing and harvesting process adequate to preserve the unique characteristics of the pineapple? Does the region have the proper temperature range for this variety?
PRODUCTION 3
How are post harvest conditions? Is transport and warehousing adequate for the chill sensitiveness of pineapples? Are transit times suitable for the riping period of the pineapple ?
LOGISTICS -5
Does the company communicate the unique properties of this variety to its prospects or custiomers ? Is there appropriate information on the specifications in brochures or on a website ?
MARKETING -1
Does the company provide product information for consumers –on labels or leaflets. Are there suggestions as how to serve the pineapple or ideas for recipes ?
SUPPORT -3

11. CUSTOMER VALUES VALUE CHAIN
This is an example of an individual SWAT sheet.
You start filling the numbers column by column. The question at each crossroad is
“To what extent does the value chain of the firm meet the specific customer values of the buyer ?
In each column, numbers can be used only once.
CUSTOMER VALUES
PRODUCT
SERVICE
ACCESS
COST
SPEED
IMAGE
TECHNOLOGY 5 1 1 1 -3 1
PRODUCTION 3 5 3 5 3 5
VALUE CHAIN
LOGISTICS -5 -1 -1 3 1 3
MARKETING -1 -3 -5 -3 5 -3
SUPPORT -3 3 -3 -5 -1 -1

12. CUSTOMER VALUES VALUE CHAIN
This is an example of a consolidated SWAT sheet. Individual results are added up and divided by the number of participants
First analysis is whether the numbers close to zero are the result of consensus or opposite opinions in the group.
If all members have interpreted the respective box in the same way, but still have different opinions, the scores are left untouched.
CUSTOMER VALUES
PRODUCT
SERVICE
ACCESS
COST
SPEED
IMAGE
TECHNOLOGY
PRODUCTION
VALUE CHAIN
LOGISTICS
MARKETING
SUPPORT

13. CUSTOMER VALUES VALUE CHAIN
The unique asset of the SWAT analysis is its detailed analysis of “focus” -green areas- and “challenge”–red areas of a firm.
These are the basis for the selection of the right product/market combination, the unique selling proposition and corrective actions to be taken.
CUSTOMER VALUES
PRODUCT
SERVICE
ACCESS
COST
SPEED
IMAGE
TECHNOLOGY
PRODUCTION
VALUE CHAIN
LOGISTICS
MARKETING
SUPPORT

14. SWAT – in a nutshell
The SWAT analysis uses elements of The Magic Pallet from supply side -value chain- and demand side -customer values
Core analysis is a firm’s capability to make a competitive value proposition to a targeted market segment
Outcome of the analysis give tangible –not subjective strengths and weaknesses –focus and challenge
This outcome is the basis for
An appropriate product/market combination
A unique selling proposition
A market entry strategy
Multiple SWAT’s are the most reliable input for sector analyses and sector strategies