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

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

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

4. 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

5. 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

6. 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

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

8. 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

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

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

11. 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

12. 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

13. 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

14. 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

15. 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

16. 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

17. 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

18. 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

19. 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

20. Lays example (External):

21. 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

22. 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

23. 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

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