Download - Session 2 - MABD
882019 Session 2 - MABD
httpslidepdfcomreaderfullsession-2-mabd 127
120310 1
ar e ngManagement
Sales amp Marketing
OrientationsThe Marketing Approach(Understanding Customer Requirements ampCreating Customer Value)
The Value ChainMarketing PlanSWOT Analysis
882019 Session 2 - MABD
httpslidepdfcomreaderfullsession-2-mabd 227
120310 2
SalesOrientation
Sales Orientation
The concept holds the consumers will not buy enough of the organizationsproducts unless the organization undertake a large selling and promotionaleffort
The selling concept is practiced most aggressively with unsought goods ndashgoods that buyers normally do not think of buying such as insurance policiesThe selling concept is also practiced in non profit areas by fund raiserscollege admission offices and political parties
Most firms practice the concept of selling when they have overcapacity Their aim is to sell what they make rather than make what the market wants
It focuses on creating sales transactions rather than building on long termprofitable relationships with its customers This can sometimes lead to a long
term impact on sales because dissatisfied customers do not buy againWorse yet while the average satisfied customer tells three others about goodexperiences the average dissatisfied customer tells ten others about his or her bad experience
882019 Session 2 - MABD
httpslidepdfcomreaderfullsession-2-mabd 327
120310 3
MarketingOrientation
Marketing Orientation
The marketing orientation holds that the key to achieving organizational goals consists
of the company being more effective than its competitors in creating delivering and
communicating customer value to its chosen target markets
Theodore Levitt of Harvard drew a perceptive contrast between selling and marketing
concepts ldquo Selling focuses on the needs of the seller marketing on the needs of the
buyerrdquo Selling is preoccupied with the sellerrsquos needs to convert his product into cashmarketing with the idea of satisfying the needs of the customer by means of the
product and the whole cluster of things associated with creating delivering and finally
consuming it
The marketing concept rests on four pillarsTarget market Customer needs Integrated
Marketing and profitability The selling concept takes an inside out perspective It starts
with the factory focuses on its existing products and calls for heavy selling and
promoting to produce profitable sales The marketing concept takes and outside-in
perspective It starts with a well defined market focuses on customer needs co-
ordinates activities that affect customers and produces profit by satisfying customers
This concept can be widely seen in Nokia phones Their models are market specific
and aimed at satisfying well defined segments of customers
882019 Session 2 - MABD
httpslidepdfcomreaderfullsession-2-mabd 427
120310 4
Sales amp MarketingOrientations
Time
P r o
f i
t
Sales Orientation
Marketing Orientation
882019 Session 2 - MABD
httpslidepdfcomreaderfullsession-2-mabd 527
120310 5
KeyDifferentiators
Marketing and Sales Orientations
Marketing orientation gives long term profit because
customers do repeat purchases but sales orientation
gives short term profits
The market oriented firms conduct researches to find
out customer needs and wants unlike sales orientated
firms that conduct researches only to find out why
sales declined Marketing oriented firms believe that the customer
satisfaction is the thing that the customer wants unlike
sales oriented firms that believe in quality and profits
882019 Session 2 - MABD
httpslidepdfcomreaderfullsession-2-mabd 627
120310 6
The MarketingApproach
The marketing approach is all about understanding and satisfying
customer needs
It is a fundamental idea of marketing that organizations survive and
prosper through meeting the needs and wants of customers This
important perspective is commonly known as the Marketing Concept
The marketing concept is about matching a companys capabilities
with customer wants This matching process takes place in what is
called the marketing environment
Businesses do not undertake marketing activities alone They face
threats from competitors and changes in the political economic
social and technological environment All these factors have to be
taken into account as a business tries to match its capabilities with the
needs and wants of its target customers An organization that adopts the marketing concept accepts the needs
of potential customers as the basis for its operations Success is
dependent on satisfying customer needs
882019 Session 2 - MABD
httpslidepdfcomreaderfullsession-2-mabd 727
120310 7
The MarketingApproach
Need
A need is a basic requirement that an individual wishes to satisfy People have basicneeds for food shelter affection esteem and self-development Many of these needsare created from human biology and the nature of social relationships Customer needs are therefore very broad
WantA want is a desire for a specific product or service to satisfy the underlying need
For example consumers need to eat when they are hungry but what they want to eatand in what kind of environment will vary enormously For some eating at McDonaldssatisfies the need to meet hunger For others a micro waved ready-meal meets the
need Some consumers are never satisfied unless their food comes served with abottle of fine Chardonnay
Consumer wants are shaped by social and cultural forces the media and marketingactivities of businesses
DemandConsumer demand is a want for a specific product supported by an ability andwillingness to pay for it
For example many consumers around the globe want a Mercedes But relatively few
are able and willing to buy oneBusinesses therefore have not only to make products that consumers want but theyalso have to make them affordable to a sufficient number to create profitable demand
Businesses do not create customer needs or the social status in which customer needs are influenced It is not McDonalds that makes people hungry Howeverbusinesses do try to influence demand by designing products and services that are
AttractiveWork wellAffordable
Available
882019 Session 2 - MABD
httpslidepdfcomreaderfullsession-2-mabd 827
120310 8
The Value Chain
Specific interlinked activities through which an
organization can create competitive advantage are
Collectively termed as Value Chain
The aim of these activities is to generate value thatexceeds the cost of carrying out these activities thus
generating a profit margin
The value chain comprises of two groups of activities
Primary Activities
Support Activities
882019 Session 2 - MABD
httpslidepdfcomreaderfullsession-2-mabd 927
120310 9
The Value Chain
882019 Session 2 - MABD
httpslidepdfcomreaderfullsession-2-mabd 1027
120310 10
The Value Chain
Primary Activities Inbound logistics include the receiving warehousing
and inventory control of input materials Operations are the value-creating activities that
transform the inputs into the final product Outbound logistics are the activities required to get
the finished product to the customer includingwarehousing order fulfillment etc
Marketing amp Sales are those activities associated withgetting buyers to purchase the product including
channel selection advertising pricing etc Service activities are those that maintain and enhance
the products value including customer support repair services etc
882019 Session 2 - MABD
httpslidepdfcomreaderfullsession-2-mabd 1127
120310 11
The Value Chain
Support Activities Procurement - the function of purchasing the
raw materials and other inputs used in the value-creating activities
Technology Development - includes researchand development process automation and other technology development used to support thevalue-chain activities
Human Resource Management - the activities
associated with recruiting development andcompensation of employees
Firm Infrastructure - includes activities such asfinance legal quality management etc
882019 Session 2 - MABD
httpslidepdfcomreaderfullsession-2-mabd 1227
120310 12
The Value Chain
Value Chain Analysis
In order to better understand the activities leading to a
competitive advantage one can begin with the generic value
chain and then identify the relevant firm-specific activities
Process flows can be mapped and these flows used toisolate the individual value-creating activities
Once the discrete activities are defined linkages between
activities should be identified A linkage exists if the
performance or cost of one activity affects that of another
Competitive advantage may be obtained by optimizing and
coordinating linked activities
The value chain also is useful in outsourcing decisions
Understanding the linkages between activities can lead to
more optimal make-or-buy decisions that can result in either a
cost advantage or a differentiation advantage
882019 Session 2 - MABD
httpslidepdfcomreaderfullsession-2-mabd 1327
120310 13
The Value Chain
The Value System
882019 Session 2 - MABD
httpslidepdfcomreaderfullsession-2-mabd 1427
120310 14
The Value Chain
The Value System
The firms value chain links to the value
chains of upstream suppliers and
downstream buyers The result is a
larger stream of activities known as
the value system The development of a
competitive advantage depends not only
on the firm-specific value chain but alsoon the value system of which the firm is
a part
882019 Session 2 - MABD
httpslidepdfcomreaderfullsession-2-mabd 1527
120310 15
The MarketingPlan
882019 Session 2 - MABD
httpslidepdfcomreaderfullsession-2-mabd 1627
120310 16
The MarketingPlan
The Marketing Plan is a highly detailed heavilyresearched and hopefully well written report thatmany inside and possibly outside the organization willevaluate It is an essential document for both largecorporate marketing departments and for startup
companies Essentially the Marketing Plan forces the marketing personnel to look internally in
order to fully understand the results of past marketingdecisions
forces the marketing personnel to look externally in
order to fully understand the market in which theyoperate sets future goals and provides direction for future
marketing efforts that everyone within theorganization should understand and support
is a key component in obtaining funding to pursue
new initiatives
882019 Session 2 - MABD
httpslidepdfcomreaderfullsession-2-mabd 1727
120310 17
The MarketingPlan
The Marketing Plan is generally undertaken for one of the following reasons
Needed as part of the yearly planning process within the marketing functional area
Needed for a specialized strategy to introduce something new such as new product planning entering new markets or trying a new strategy to fix an existing problem
Is a component within an overall business plan such as a new business proposal tothe financial community
There are many ways to develop and format a marketing plan The approach taken here isto present a 6-Part plan that includes Purpose and Mission Situational Analysis
Marketing Strategy and Objectives
Tactical Programs
Budgets Performance Analysis and Implementation
Additional Consideration
The marketing Plan Outline
882019 Session 2 - MABD
httpslidepdfcomreaderfullsession-2-mabd 1827
120310 18
SWOT Analysis
A scan of the internal and external environmentis an important part of the strategic planningprocess Environmental factors internal to thefirm usually can be classified as strengths (S) or weaknesses (W) and those external to the firm
can be classified as opportunities (O) or threats(T) Such an analysis of the strategicenvironment is referred to as a SWOT analysis
The SWOT analysis provides information that is
helpful in matching the firms resources andcapabilities to the competitive environment inwhich it operates As such it is instrumental instrategy formulation and selection The followingdiagram shows how a SWOT analysis fits into anenvironmental scan
882019 Session 2 - MABD
httpslidepdfcomreaderfullsession-2-mabd 1927
120310 19
SWOT Analysis
Environmental Scan
Internal
Analysis
External
Analysis
Strengths
Weaknesses
Opportunities
Threats
SWOT Matrix
882019 Session 2 - MABD
httpslidepdfcomreaderfullsession-2-mabd 2027
120310 20
SWOT Analysis
Strengths
A firms strengths are its resources and
capabilities that can be used as a basis for
developing a competitive advantage Examples
of such strengths include
patents
strong brand names
good reputation among customers cost advantages from proprietary know-how
exclusive access to high grade natural resources
favorable access to distribution networks
882019 Session 2 - MABD
httpslidepdfcomreaderfullsession-2-mabd 2127
120310 21
SWOT Analysis
Weaknesses
The absence of certain strengths may be viewed as a weakness For example each of the following may be considered weaknesses
lack of patent protection a weak brand name poor reputation among customers high cost structure lack of access to the best natural resources lack of access to key distribution channels
In some cases a weakness may be the flip side of a strength Takethe case in which a firm has a large amount of manufacturingcapacity While this capacity may be considered a strength thatcompetitors do not share it also may be a considered a weakness if the large investment in manufacturing capacity prevents the firm fromreacting quickly to changes in the strategic environment
882019 Session 2 - MABD
httpslidepdfcomreaderfullsession-2-mabd 2227
120310 22
SWOT Analysis
Opportunities
The external environmental analysis may
reveal certain new opportunities for profitand growth Some examples of suchopportunities include
an unfulfilled customer need arrival of new technologies loosening of regulations removal of international trade barriers
882019 Session 2 - MABD
httpslidepdfcomreaderfullsession-2-mabd 2327
120310 23
SWOT Analysis
Threats
Changes in the external environmental
also may present threats to the firm Someexamples of such threats include shifts in consumer tastes away from the
firms products emergence of substitute products new regulations increased trade barriers
882019 Session 2 - MABD
httpslidepdfcomreaderfullsession-2-mabd 2427
120310 24
SWOT Analysis
The SWOT Matrix
A firm should not necessarily pursue the more lucrativeopportunities Rather it may have a better chance atdeveloping a competitive advantage by identifying a fit
between the firms strengths and upcomingopportunities In some cases the firm can overcome aweakness in order to prepare itself to pursue acompelling opportunity
To develop strategies that take into account the SWOTprofile a matrix of these factors can be constructedThe SWOT matrix (also known as a TOWS Matrix)
882019 Session 2 - MABD
httpslidepdfcomreaderfullsession-2-mabd 2527
120310 25
SWOT Analysis
Strengths Weaknesses
OpportunitiesS-O strategies W-O strategies
ThreatsS-T strategies W-T strategies
The SWOT Matrix
882019 Session 2 - MABD
httpslidepdfcomreaderfullsession-2-mabd 2627
120310 26
SWOT Analysis
S-O strategies pursue opportunities that are agood fit to the companys strengths
W-O strategies overcome weaknesses topursue opportunities
S-T strategies identify ways that the firm canuse its strengths to reduce its vulnerability toexternal threats
W-T strategies establish a defensive plan toprevent the firms weaknesses from making it
highly susceptible to external threats
882019 Session 2 - MABD
httpslidepdfcomreaderfullsession-2-mabd 2727
120310 27
882019 Session 2 - MABD
httpslidepdfcomreaderfullsession-2-mabd 227
120310 2
SalesOrientation
Sales Orientation
The concept holds the consumers will not buy enough of the organizationsproducts unless the organization undertake a large selling and promotionaleffort
The selling concept is practiced most aggressively with unsought goods ndashgoods that buyers normally do not think of buying such as insurance policiesThe selling concept is also practiced in non profit areas by fund raiserscollege admission offices and political parties
Most firms practice the concept of selling when they have overcapacity Their aim is to sell what they make rather than make what the market wants
It focuses on creating sales transactions rather than building on long termprofitable relationships with its customers This can sometimes lead to a long
term impact on sales because dissatisfied customers do not buy againWorse yet while the average satisfied customer tells three others about goodexperiences the average dissatisfied customer tells ten others about his or her bad experience
882019 Session 2 - MABD
httpslidepdfcomreaderfullsession-2-mabd 327
120310 3
MarketingOrientation
Marketing Orientation
The marketing orientation holds that the key to achieving organizational goals consists
of the company being more effective than its competitors in creating delivering and
communicating customer value to its chosen target markets
Theodore Levitt of Harvard drew a perceptive contrast between selling and marketing
concepts ldquo Selling focuses on the needs of the seller marketing on the needs of the
buyerrdquo Selling is preoccupied with the sellerrsquos needs to convert his product into cashmarketing with the idea of satisfying the needs of the customer by means of the
product and the whole cluster of things associated with creating delivering and finally
consuming it
The marketing concept rests on four pillarsTarget market Customer needs Integrated
Marketing and profitability The selling concept takes an inside out perspective It starts
with the factory focuses on its existing products and calls for heavy selling and
promoting to produce profitable sales The marketing concept takes and outside-in
perspective It starts with a well defined market focuses on customer needs co-
ordinates activities that affect customers and produces profit by satisfying customers
This concept can be widely seen in Nokia phones Their models are market specific
and aimed at satisfying well defined segments of customers
882019 Session 2 - MABD
httpslidepdfcomreaderfullsession-2-mabd 427
120310 4
Sales amp MarketingOrientations
Time
P r o
f i
t
Sales Orientation
Marketing Orientation
882019 Session 2 - MABD
httpslidepdfcomreaderfullsession-2-mabd 527
120310 5
KeyDifferentiators
Marketing and Sales Orientations
Marketing orientation gives long term profit because
customers do repeat purchases but sales orientation
gives short term profits
The market oriented firms conduct researches to find
out customer needs and wants unlike sales orientated
firms that conduct researches only to find out why
sales declined Marketing oriented firms believe that the customer
satisfaction is the thing that the customer wants unlike
sales oriented firms that believe in quality and profits
882019 Session 2 - MABD
httpslidepdfcomreaderfullsession-2-mabd 627
120310 6
The MarketingApproach
The marketing approach is all about understanding and satisfying
customer needs
It is a fundamental idea of marketing that organizations survive and
prosper through meeting the needs and wants of customers This
important perspective is commonly known as the Marketing Concept
The marketing concept is about matching a companys capabilities
with customer wants This matching process takes place in what is
called the marketing environment
Businesses do not undertake marketing activities alone They face
threats from competitors and changes in the political economic
social and technological environment All these factors have to be
taken into account as a business tries to match its capabilities with the
needs and wants of its target customers An organization that adopts the marketing concept accepts the needs
of potential customers as the basis for its operations Success is
dependent on satisfying customer needs
882019 Session 2 - MABD
httpslidepdfcomreaderfullsession-2-mabd 727
120310 7
The MarketingApproach
Need
A need is a basic requirement that an individual wishes to satisfy People have basicneeds for food shelter affection esteem and self-development Many of these needsare created from human biology and the nature of social relationships Customer needs are therefore very broad
WantA want is a desire for a specific product or service to satisfy the underlying need
For example consumers need to eat when they are hungry but what they want to eatand in what kind of environment will vary enormously For some eating at McDonaldssatisfies the need to meet hunger For others a micro waved ready-meal meets the
need Some consumers are never satisfied unless their food comes served with abottle of fine Chardonnay
Consumer wants are shaped by social and cultural forces the media and marketingactivities of businesses
DemandConsumer demand is a want for a specific product supported by an ability andwillingness to pay for it
For example many consumers around the globe want a Mercedes But relatively few
are able and willing to buy oneBusinesses therefore have not only to make products that consumers want but theyalso have to make them affordable to a sufficient number to create profitable demand
Businesses do not create customer needs or the social status in which customer needs are influenced It is not McDonalds that makes people hungry Howeverbusinesses do try to influence demand by designing products and services that are
AttractiveWork wellAffordable
Available
882019 Session 2 - MABD
httpslidepdfcomreaderfullsession-2-mabd 827
120310 8
The Value Chain
Specific interlinked activities through which an
organization can create competitive advantage are
Collectively termed as Value Chain
The aim of these activities is to generate value thatexceeds the cost of carrying out these activities thus
generating a profit margin
The value chain comprises of two groups of activities
Primary Activities
Support Activities
882019 Session 2 - MABD
httpslidepdfcomreaderfullsession-2-mabd 927
120310 9
The Value Chain
882019 Session 2 - MABD
httpslidepdfcomreaderfullsession-2-mabd 1027
120310 10
The Value Chain
Primary Activities Inbound logistics include the receiving warehousing
and inventory control of input materials Operations are the value-creating activities that
transform the inputs into the final product Outbound logistics are the activities required to get
the finished product to the customer includingwarehousing order fulfillment etc
Marketing amp Sales are those activities associated withgetting buyers to purchase the product including
channel selection advertising pricing etc Service activities are those that maintain and enhance
the products value including customer support repair services etc
882019 Session 2 - MABD
httpslidepdfcomreaderfullsession-2-mabd 1127
120310 11
The Value Chain
Support Activities Procurement - the function of purchasing the
raw materials and other inputs used in the value-creating activities
Technology Development - includes researchand development process automation and other technology development used to support thevalue-chain activities
Human Resource Management - the activities
associated with recruiting development andcompensation of employees
Firm Infrastructure - includes activities such asfinance legal quality management etc
882019 Session 2 - MABD
httpslidepdfcomreaderfullsession-2-mabd 1227
120310 12
The Value Chain
Value Chain Analysis
In order to better understand the activities leading to a
competitive advantage one can begin with the generic value
chain and then identify the relevant firm-specific activities
Process flows can be mapped and these flows used toisolate the individual value-creating activities
Once the discrete activities are defined linkages between
activities should be identified A linkage exists if the
performance or cost of one activity affects that of another
Competitive advantage may be obtained by optimizing and
coordinating linked activities
The value chain also is useful in outsourcing decisions
Understanding the linkages between activities can lead to
more optimal make-or-buy decisions that can result in either a
cost advantage or a differentiation advantage
882019 Session 2 - MABD
httpslidepdfcomreaderfullsession-2-mabd 1327
120310 13
The Value Chain
The Value System
882019 Session 2 - MABD
httpslidepdfcomreaderfullsession-2-mabd 1427
120310 14
The Value Chain
The Value System
The firms value chain links to the value
chains of upstream suppliers and
downstream buyers The result is a
larger stream of activities known as
the value system The development of a
competitive advantage depends not only
on the firm-specific value chain but alsoon the value system of which the firm is
a part
882019 Session 2 - MABD
httpslidepdfcomreaderfullsession-2-mabd 1527
120310 15
The MarketingPlan
882019 Session 2 - MABD
httpslidepdfcomreaderfullsession-2-mabd 1627
120310 16
The MarketingPlan
The Marketing Plan is a highly detailed heavilyresearched and hopefully well written report thatmany inside and possibly outside the organization willevaluate It is an essential document for both largecorporate marketing departments and for startup
companies Essentially the Marketing Plan forces the marketing personnel to look internally in
order to fully understand the results of past marketingdecisions
forces the marketing personnel to look externally in
order to fully understand the market in which theyoperate sets future goals and provides direction for future
marketing efforts that everyone within theorganization should understand and support
is a key component in obtaining funding to pursue
new initiatives
882019 Session 2 - MABD
httpslidepdfcomreaderfullsession-2-mabd 1727
120310 17
The MarketingPlan
The Marketing Plan is generally undertaken for one of the following reasons
Needed as part of the yearly planning process within the marketing functional area
Needed for a specialized strategy to introduce something new such as new product planning entering new markets or trying a new strategy to fix an existing problem
Is a component within an overall business plan such as a new business proposal tothe financial community
There are many ways to develop and format a marketing plan The approach taken here isto present a 6-Part plan that includes Purpose and Mission Situational Analysis
Marketing Strategy and Objectives
Tactical Programs
Budgets Performance Analysis and Implementation
Additional Consideration
The marketing Plan Outline
882019 Session 2 - MABD
httpslidepdfcomreaderfullsession-2-mabd 1827
120310 18
SWOT Analysis
A scan of the internal and external environmentis an important part of the strategic planningprocess Environmental factors internal to thefirm usually can be classified as strengths (S) or weaknesses (W) and those external to the firm
can be classified as opportunities (O) or threats(T) Such an analysis of the strategicenvironment is referred to as a SWOT analysis
The SWOT analysis provides information that is
helpful in matching the firms resources andcapabilities to the competitive environment inwhich it operates As such it is instrumental instrategy formulation and selection The followingdiagram shows how a SWOT analysis fits into anenvironmental scan
882019 Session 2 - MABD
httpslidepdfcomreaderfullsession-2-mabd 1927
120310 19
SWOT Analysis
Environmental Scan
Internal
Analysis
External
Analysis
Strengths
Weaknesses
Opportunities
Threats
SWOT Matrix
882019 Session 2 - MABD
httpslidepdfcomreaderfullsession-2-mabd 2027
120310 20
SWOT Analysis
Strengths
A firms strengths are its resources and
capabilities that can be used as a basis for
developing a competitive advantage Examples
of such strengths include
patents
strong brand names
good reputation among customers cost advantages from proprietary know-how
exclusive access to high grade natural resources
favorable access to distribution networks
882019 Session 2 - MABD
httpslidepdfcomreaderfullsession-2-mabd 2127
120310 21
SWOT Analysis
Weaknesses
The absence of certain strengths may be viewed as a weakness For example each of the following may be considered weaknesses
lack of patent protection a weak brand name poor reputation among customers high cost structure lack of access to the best natural resources lack of access to key distribution channels
In some cases a weakness may be the flip side of a strength Takethe case in which a firm has a large amount of manufacturingcapacity While this capacity may be considered a strength thatcompetitors do not share it also may be a considered a weakness if the large investment in manufacturing capacity prevents the firm fromreacting quickly to changes in the strategic environment
882019 Session 2 - MABD
httpslidepdfcomreaderfullsession-2-mabd 2227
120310 22
SWOT Analysis
Opportunities
The external environmental analysis may
reveal certain new opportunities for profitand growth Some examples of suchopportunities include
an unfulfilled customer need arrival of new technologies loosening of regulations removal of international trade barriers
882019 Session 2 - MABD
httpslidepdfcomreaderfullsession-2-mabd 2327
120310 23
SWOT Analysis
Threats
Changes in the external environmental
also may present threats to the firm Someexamples of such threats include shifts in consumer tastes away from the
firms products emergence of substitute products new regulations increased trade barriers
882019 Session 2 - MABD
httpslidepdfcomreaderfullsession-2-mabd 2427
120310 24
SWOT Analysis
The SWOT Matrix
A firm should not necessarily pursue the more lucrativeopportunities Rather it may have a better chance atdeveloping a competitive advantage by identifying a fit
between the firms strengths and upcomingopportunities In some cases the firm can overcome aweakness in order to prepare itself to pursue acompelling opportunity
To develop strategies that take into account the SWOTprofile a matrix of these factors can be constructedThe SWOT matrix (also known as a TOWS Matrix)
882019 Session 2 - MABD
httpslidepdfcomreaderfullsession-2-mabd 2527
120310 25
SWOT Analysis
Strengths Weaknesses
OpportunitiesS-O strategies W-O strategies
ThreatsS-T strategies W-T strategies
The SWOT Matrix
882019 Session 2 - MABD
httpslidepdfcomreaderfullsession-2-mabd 2627
120310 26
SWOT Analysis
S-O strategies pursue opportunities that are agood fit to the companys strengths
W-O strategies overcome weaknesses topursue opportunities
S-T strategies identify ways that the firm canuse its strengths to reduce its vulnerability toexternal threats
W-T strategies establish a defensive plan toprevent the firms weaknesses from making it
highly susceptible to external threats
882019 Session 2 - MABD
httpslidepdfcomreaderfullsession-2-mabd 2727
120310 27
882019 Session 2 - MABD
httpslidepdfcomreaderfullsession-2-mabd 327
120310 3
MarketingOrientation
Marketing Orientation
The marketing orientation holds that the key to achieving organizational goals consists
of the company being more effective than its competitors in creating delivering and
communicating customer value to its chosen target markets
Theodore Levitt of Harvard drew a perceptive contrast between selling and marketing
concepts ldquo Selling focuses on the needs of the seller marketing on the needs of the
buyerrdquo Selling is preoccupied with the sellerrsquos needs to convert his product into cashmarketing with the idea of satisfying the needs of the customer by means of the
product and the whole cluster of things associated with creating delivering and finally
consuming it
The marketing concept rests on four pillarsTarget market Customer needs Integrated
Marketing and profitability The selling concept takes an inside out perspective It starts
with the factory focuses on its existing products and calls for heavy selling and
promoting to produce profitable sales The marketing concept takes and outside-in
perspective It starts with a well defined market focuses on customer needs co-
ordinates activities that affect customers and produces profit by satisfying customers
This concept can be widely seen in Nokia phones Their models are market specific
and aimed at satisfying well defined segments of customers
882019 Session 2 - MABD
httpslidepdfcomreaderfullsession-2-mabd 427
120310 4
Sales amp MarketingOrientations
Time
P r o
f i
t
Sales Orientation
Marketing Orientation
882019 Session 2 - MABD
httpslidepdfcomreaderfullsession-2-mabd 527
120310 5
KeyDifferentiators
Marketing and Sales Orientations
Marketing orientation gives long term profit because
customers do repeat purchases but sales orientation
gives short term profits
The market oriented firms conduct researches to find
out customer needs and wants unlike sales orientated
firms that conduct researches only to find out why
sales declined Marketing oriented firms believe that the customer
satisfaction is the thing that the customer wants unlike
sales oriented firms that believe in quality and profits
882019 Session 2 - MABD
httpslidepdfcomreaderfullsession-2-mabd 627
120310 6
The MarketingApproach
The marketing approach is all about understanding and satisfying
customer needs
It is a fundamental idea of marketing that organizations survive and
prosper through meeting the needs and wants of customers This
important perspective is commonly known as the Marketing Concept
The marketing concept is about matching a companys capabilities
with customer wants This matching process takes place in what is
called the marketing environment
Businesses do not undertake marketing activities alone They face
threats from competitors and changes in the political economic
social and technological environment All these factors have to be
taken into account as a business tries to match its capabilities with the
needs and wants of its target customers An organization that adopts the marketing concept accepts the needs
of potential customers as the basis for its operations Success is
dependent on satisfying customer needs
882019 Session 2 - MABD
httpslidepdfcomreaderfullsession-2-mabd 727
120310 7
The MarketingApproach
Need
A need is a basic requirement that an individual wishes to satisfy People have basicneeds for food shelter affection esteem and self-development Many of these needsare created from human biology and the nature of social relationships Customer needs are therefore very broad
WantA want is a desire for a specific product or service to satisfy the underlying need
For example consumers need to eat when they are hungry but what they want to eatand in what kind of environment will vary enormously For some eating at McDonaldssatisfies the need to meet hunger For others a micro waved ready-meal meets the
need Some consumers are never satisfied unless their food comes served with abottle of fine Chardonnay
Consumer wants are shaped by social and cultural forces the media and marketingactivities of businesses
DemandConsumer demand is a want for a specific product supported by an ability andwillingness to pay for it
For example many consumers around the globe want a Mercedes But relatively few
are able and willing to buy oneBusinesses therefore have not only to make products that consumers want but theyalso have to make them affordable to a sufficient number to create profitable demand
Businesses do not create customer needs or the social status in which customer needs are influenced It is not McDonalds that makes people hungry Howeverbusinesses do try to influence demand by designing products and services that are
AttractiveWork wellAffordable
Available
882019 Session 2 - MABD
httpslidepdfcomreaderfullsession-2-mabd 827
120310 8
The Value Chain
Specific interlinked activities through which an
organization can create competitive advantage are
Collectively termed as Value Chain
The aim of these activities is to generate value thatexceeds the cost of carrying out these activities thus
generating a profit margin
The value chain comprises of two groups of activities
Primary Activities
Support Activities
882019 Session 2 - MABD
httpslidepdfcomreaderfullsession-2-mabd 927
120310 9
The Value Chain
882019 Session 2 - MABD
httpslidepdfcomreaderfullsession-2-mabd 1027
120310 10
The Value Chain
Primary Activities Inbound logistics include the receiving warehousing
and inventory control of input materials Operations are the value-creating activities that
transform the inputs into the final product Outbound logistics are the activities required to get
the finished product to the customer includingwarehousing order fulfillment etc
Marketing amp Sales are those activities associated withgetting buyers to purchase the product including
channel selection advertising pricing etc Service activities are those that maintain and enhance
the products value including customer support repair services etc
882019 Session 2 - MABD
httpslidepdfcomreaderfullsession-2-mabd 1127
120310 11
The Value Chain
Support Activities Procurement - the function of purchasing the
raw materials and other inputs used in the value-creating activities
Technology Development - includes researchand development process automation and other technology development used to support thevalue-chain activities
Human Resource Management - the activities
associated with recruiting development andcompensation of employees
Firm Infrastructure - includes activities such asfinance legal quality management etc
882019 Session 2 - MABD
httpslidepdfcomreaderfullsession-2-mabd 1227
120310 12
The Value Chain
Value Chain Analysis
In order to better understand the activities leading to a
competitive advantage one can begin with the generic value
chain and then identify the relevant firm-specific activities
Process flows can be mapped and these flows used toisolate the individual value-creating activities
Once the discrete activities are defined linkages between
activities should be identified A linkage exists if the
performance or cost of one activity affects that of another
Competitive advantage may be obtained by optimizing and
coordinating linked activities
The value chain also is useful in outsourcing decisions
Understanding the linkages between activities can lead to
more optimal make-or-buy decisions that can result in either a
cost advantage or a differentiation advantage
882019 Session 2 - MABD
httpslidepdfcomreaderfullsession-2-mabd 1327
120310 13
The Value Chain
The Value System
882019 Session 2 - MABD
httpslidepdfcomreaderfullsession-2-mabd 1427
120310 14
The Value Chain
The Value System
The firms value chain links to the value
chains of upstream suppliers and
downstream buyers The result is a
larger stream of activities known as
the value system The development of a
competitive advantage depends not only
on the firm-specific value chain but alsoon the value system of which the firm is
a part
882019 Session 2 - MABD
httpslidepdfcomreaderfullsession-2-mabd 1527
120310 15
The MarketingPlan
882019 Session 2 - MABD
httpslidepdfcomreaderfullsession-2-mabd 1627
120310 16
The MarketingPlan
The Marketing Plan is a highly detailed heavilyresearched and hopefully well written report thatmany inside and possibly outside the organization willevaluate It is an essential document for both largecorporate marketing departments and for startup
companies Essentially the Marketing Plan forces the marketing personnel to look internally in
order to fully understand the results of past marketingdecisions
forces the marketing personnel to look externally in
order to fully understand the market in which theyoperate sets future goals and provides direction for future
marketing efforts that everyone within theorganization should understand and support
is a key component in obtaining funding to pursue
new initiatives
882019 Session 2 - MABD
httpslidepdfcomreaderfullsession-2-mabd 1727
120310 17
The MarketingPlan
The Marketing Plan is generally undertaken for one of the following reasons
Needed as part of the yearly planning process within the marketing functional area
Needed for a specialized strategy to introduce something new such as new product planning entering new markets or trying a new strategy to fix an existing problem
Is a component within an overall business plan such as a new business proposal tothe financial community
There are many ways to develop and format a marketing plan The approach taken here isto present a 6-Part plan that includes Purpose and Mission Situational Analysis
Marketing Strategy and Objectives
Tactical Programs
Budgets Performance Analysis and Implementation
Additional Consideration
The marketing Plan Outline
882019 Session 2 - MABD
httpslidepdfcomreaderfullsession-2-mabd 1827
120310 18
SWOT Analysis
A scan of the internal and external environmentis an important part of the strategic planningprocess Environmental factors internal to thefirm usually can be classified as strengths (S) or weaknesses (W) and those external to the firm
can be classified as opportunities (O) or threats(T) Such an analysis of the strategicenvironment is referred to as a SWOT analysis
The SWOT analysis provides information that is
helpful in matching the firms resources andcapabilities to the competitive environment inwhich it operates As such it is instrumental instrategy formulation and selection The followingdiagram shows how a SWOT analysis fits into anenvironmental scan
882019 Session 2 - MABD
httpslidepdfcomreaderfullsession-2-mabd 1927
120310 19
SWOT Analysis
Environmental Scan
Internal
Analysis
External
Analysis
Strengths
Weaknesses
Opportunities
Threats
SWOT Matrix
882019 Session 2 - MABD
httpslidepdfcomreaderfullsession-2-mabd 2027
120310 20
SWOT Analysis
Strengths
A firms strengths are its resources and
capabilities that can be used as a basis for
developing a competitive advantage Examples
of such strengths include
patents
strong brand names
good reputation among customers cost advantages from proprietary know-how
exclusive access to high grade natural resources
favorable access to distribution networks
882019 Session 2 - MABD
httpslidepdfcomreaderfullsession-2-mabd 2127
120310 21
SWOT Analysis
Weaknesses
The absence of certain strengths may be viewed as a weakness For example each of the following may be considered weaknesses
lack of patent protection a weak brand name poor reputation among customers high cost structure lack of access to the best natural resources lack of access to key distribution channels
In some cases a weakness may be the flip side of a strength Takethe case in which a firm has a large amount of manufacturingcapacity While this capacity may be considered a strength thatcompetitors do not share it also may be a considered a weakness if the large investment in manufacturing capacity prevents the firm fromreacting quickly to changes in the strategic environment
882019 Session 2 - MABD
httpslidepdfcomreaderfullsession-2-mabd 2227
120310 22
SWOT Analysis
Opportunities
The external environmental analysis may
reveal certain new opportunities for profitand growth Some examples of suchopportunities include
an unfulfilled customer need arrival of new technologies loosening of regulations removal of international trade barriers
882019 Session 2 - MABD
httpslidepdfcomreaderfullsession-2-mabd 2327
120310 23
SWOT Analysis
Threats
Changes in the external environmental
also may present threats to the firm Someexamples of such threats include shifts in consumer tastes away from the
firms products emergence of substitute products new regulations increased trade barriers
882019 Session 2 - MABD
httpslidepdfcomreaderfullsession-2-mabd 2427
120310 24
SWOT Analysis
The SWOT Matrix
A firm should not necessarily pursue the more lucrativeopportunities Rather it may have a better chance atdeveloping a competitive advantage by identifying a fit
between the firms strengths and upcomingopportunities In some cases the firm can overcome aweakness in order to prepare itself to pursue acompelling opportunity
To develop strategies that take into account the SWOTprofile a matrix of these factors can be constructedThe SWOT matrix (also known as a TOWS Matrix)
882019 Session 2 - MABD
httpslidepdfcomreaderfullsession-2-mabd 2527
120310 25
SWOT Analysis
Strengths Weaknesses
OpportunitiesS-O strategies W-O strategies
ThreatsS-T strategies W-T strategies
The SWOT Matrix
882019 Session 2 - MABD
httpslidepdfcomreaderfullsession-2-mabd 2627
120310 26
SWOT Analysis
S-O strategies pursue opportunities that are agood fit to the companys strengths
W-O strategies overcome weaknesses topursue opportunities
S-T strategies identify ways that the firm canuse its strengths to reduce its vulnerability toexternal threats
W-T strategies establish a defensive plan toprevent the firms weaknesses from making it
highly susceptible to external threats
882019 Session 2 - MABD
httpslidepdfcomreaderfullsession-2-mabd 2727
120310 27
882019 Session 2 - MABD
httpslidepdfcomreaderfullsession-2-mabd 427
120310 4
Sales amp MarketingOrientations
Time
P r o
f i
t
Sales Orientation
Marketing Orientation
882019 Session 2 - MABD
httpslidepdfcomreaderfullsession-2-mabd 527
120310 5
KeyDifferentiators
Marketing and Sales Orientations
Marketing orientation gives long term profit because
customers do repeat purchases but sales orientation
gives short term profits
The market oriented firms conduct researches to find
out customer needs and wants unlike sales orientated
firms that conduct researches only to find out why
sales declined Marketing oriented firms believe that the customer
satisfaction is the thing that the customer wants unlike
sales oriented firms that believe in quality and profits
882019 Session 2 - MABD
httpslidepdfcomreaderfullsession-2-mabd 627
120310 6
The MarketingApproach
The marketing approach is all about understanding and satisfying
customer needs
It is a fundamental idea of marketing that organizations survive and
prosper through meeting the needs and wants of customers This
important perspective is commonly known as the Marketing Concept
The marketing concept is about matching a companys capabilities
with customer wants This matching process takes place in what is
called the marketing environment
Businesses do not undertake marketing activities alone They face
threats from competitors and changes in the political economic
social and technological environment All these factors have to be
taken into account as a business tries to match its capabilities with the
needs and wants of its target customers An organization that adopts the marketing concept accepts the needs
of potential customers as the basis for its operations Success is
dependent on satisfying customer needs
882019 Session 2 - MABD
httpslidepdfcomreaderfullsession-2-mabd 727
120310 7
The MarketingApproach
Need
A need is a basic requirement that an individual wishes to satisfy People have basicneeds for food shelter affection esteem and self-development Many of these needsare created from human biology and the nature of social relationships Customer needs are therefore very broad
WantA want is a desire for a specific product or service to satisfy the underlying need
For example consumers need to eat when they are hungry but what they want to eatand in what kind of environment will vary enormously For some eating at McDonaldssatisfies the need to meet hunger For others a micro waved ready-meal meets the
need Some consumers are never satisfied unless their food comes served with abottle of fine Chardonnay
Consumer wants are shaped by social and cultural forces the media and marketingactivities of businesses
DemandConsumer demand is a want for a specific product supported by an ability andwillingness to pay for it
For example many consumers around the globe want a Mercedes But relatively few
are able and willing to buy oneBusinesses therefore have not only to make products that consumers want but theyalso have to make them affordable to a sufficient number to create profitable demand
Businesses do not create customer needs or the social status in which customer needs are influenced It is not McDonalds that makes people hungry Howeverbusinesses do try to influence demand by designing products and services that are
AttractiveWork wellAffordable
Available
882019 Session 2 - MABD
httpslidepdfcomreaderfullsession-2-mabd 827
120310 8
The Value Chain
Specific interlinked activities through which an
organization can create competitive advantage are
Collectively termed as Value Chain
The aim of these activities is to generate value thatexceeds the cost of carrying out these activities thus
generating a profit margin
The value chain comprises of two groups of activities
Primary Activities
Support Activities
882019 Session 2 - MABD
httpslidepdfcomreaderfullsession-2-mabd 927
120310 9
The Value Chain
882019 Session 2 - MABD
httpslidepdfcomreaderfullsession-2-mabd 1027
120310 10
The Value Chain
Primary Activities Inbound logistics include the receiving warehousing
and inventory control of input materials Operations are the value-creating activities that
transform the inputs into the final product Outbound logistics are the activities required to get
the finished product to the customer includingwarehousing order fulfillment etc
Marketing amp Sales are those activities associated withgetting buyers to purchase the product including
channel selection advertising pricing etc Service activities are those that maintain and enhance
the products value including customer support repair services etc
882019 Session 2 - MABD
httpslidepdfcomreaderfullsession-2-mabd 1127
120310 11
The Value Chain
Support Activities Procurement - the function of purchasing the
raw materials and other inputs used in the value-creating activities
Technology Development - includes researchand development process automation and other technology development used to support thevalue-chain activities
Human Resource Management - the activities
associated with recruiting development andcompensation of employees
Firm Infrastructure - includes activities such asfinance legal quality management etc
882019 Session 2 - MABD
httpslidepdfcomreaderfullsession-2-mabd 1227
120310 12
The Value Chain
Value Chain Analysis
In order to better understand the activities leading to a
competitive advantage one can begin with the generic value
chain and then identify the relevant firm-specific activities
Process flows can be mapped and these flows used toisolate the individual value-creating activities
Once the discrete activities are defined linkages between
activities should be identified A linkage exists if the
performance or cost of one activity affects that of another
Competitive advantage may be obtained by optimizing and
coordinating linked activities
The value chain also is useful in outsourcing decisions
Understanding the linkages between activities can lead to
more optimal make-or-buy decisions that can result in either a
cost advantage or a differentiation advantage
882019 Session 2 - MABD
httpslidepdfcomreaderfullsession-2-mabd 1327
120310 13
The Value Chain
The Value System
882019 Session 2 - MABD
httpslidepdfcomreaderfullsession-2-mabd 1427
120310 14
The Value Chain
The Value System
The firms value chain links to the value
chains of upstream suppliers and
downstream buyers The result is a
larger stream of activities known as
the value system The development of a
competitive advantage depends not only
on the firm-specific value chain but alsoon the value system of which the firm is
a part
882019 Session 2 - MABD
httpslidepdfcomreaderfullsession-2-mabd 1527
120310 15
The MarketingPlan
882019 Session 2 - MABD
httpslidepdfcomreaderfullsession-2-mabd 1627
120310 16
The MarketingPlan
The Marketing Plan is a highly detailed heavilyresearched and hopefully well written report thatmany inside and possibly outside the organization willevaluate It is an essential document for both largecorporate marketing departments and for startup
companies Essentially the Marketing Plan forces the marketing personnel to look internally in
order to fully understand the results of past marketingdecisions
forces the marketing personnel to look externally in
order to fully understand the market in which theyoperate sets future goals and provides direction for future
marketing efforts that everyone within theorganization should understand and support
is a key component in obtaining funding to pursue
new initiatives
882019 Session 2 - MABD
httpslidepdfcomreaderfullsession-2-mabd 1727
120310 17
The MarketingPlan
The Marketing Plan is generally undertaken for one of the following reasons
Needed as part of the yearly planning process within the marketing functional area
Needed for a specialized strategy to introduce something new such as new product planning entering new markets or trying a new strategy to fix an existing problem
Is a component within an overall business plan such as a new business proposal tothe financial community
There are many ways to develop and format a marketing plan The approach taken here isto present a 6-Part plan that includes Purpose and Mission Situational Analysis
Marketing Strategy and Objectives
Tactical Programs
Budgets Performance Analysis and Implementation
Additional Consideration
The marketing Plan Outline
882019 Session 2 - MABD
httpslidepdfcomreaderfullsession-2-mabd 1827
120310 18
SWOT Analysis
A scan of the internal and external environmentis an important part of the strategic planningprocess Environmental factors internal to thefirm usually can be classified as strengths (S) or weaknesses (W) and those external to the firm
can be classified as opportunities (O) or threats(T) Such an analysis of the strategicenvironment is referred to as a SWOT analysis
The SWOT analysis provides information that is
helpful in matching the firms resources andcapabilities to the competitive environment inwhich it operates As such it is instrumental instrategy formulation and selection The followingdiagram shows how a SWOT analysis fits into anenvironmental scan
882019 Session 2 - MABD
httpslidepdfcomreaderfullsession-2-mabd 1927
120310 19
SWOT Analysis
Environmental Scan
Internal
Analysis
External
Analysis
Strengths
Weaknesses
Opportunities
Threats
SWOT Matrix
882019 Session 2 - MABD
httpslidepdfcomreaderfullsession-2-mabd 2027
120310 20
SWOT Analysis
Strengths
A firms strengths are its resources and
capabilities that can be used as a basis for
developing a competitive advantage Examples
of such strengths include
patents
strong brand names
good reputation among customers cost advantages from proprietary know-how
exclusive access to high grade natural resources
favorable access to distribution networks
882019 Session 2 - MABD
httpslidepdfcomreaderfullsession-2-mabd 2127
120310 21
SWOT Analysis
Weaknesses
The absence of certain strengths may be viewed as a weakness For example each of the following may be considered weaknesses
lack of patent protection a weak brand name poor reputation among customers high cost structure lack of access to the best natural resources lack of access to key distribution channels
In some cases a weakness may be the flip side of a strength Takethe case in which a firm has a large amount of manufacturingcapacity While this capacity may be considered a strength thatcompetitors do not share it also may be a considered a weakness if the large investment in manufacturing capacity prevents the firm fromreacting quickly to changes in the strategic environment
882019 Session 2 - MABD
httpslidepdfcomreaderfullsession-2-mabd 2227
120310 22
SWOT Analysis
Opportunities
The external environmental analysis may
reveal certain new opportunities for profitand growth Some examples of suchopportunities include
an unfulfilled customer need arrival of new technologies loosening of regulations removal of international trade barriers
882019 Session 2 - MABD
httpslidepdfcomreaderfullsession-2-mabd 2327
120310 23
SWOT Analysis
Threats
Changes in the external environmental
also may present threats to the firm Someexamples of such threats include shifts in consumer tastes away from the
firms products emergence of substitute products new regulations increased trade barriers
882019 Session 2 - MABD
httpslidepdfcomreaderfullsession-2-mabd 2427
120310 24
SWOT Analysis
The SWOT Matrix
A firm should not necessarily pursue the more lucrativeopportunities Rather it may have a better chance atdeveloping a competitive advantage by identifying a fit
between the firms strengths and upcomingopportunities In some cases the firm can overcome aweakness in order to prepare itself to pursue acompelling opportunity
To develop strategies that take into account the SWOTprofile a matrix of these factors can be constructedThe SWOT matrix (also known as a TOWS Matrix)
882019 Session 2 - MABD
httpslidepdfcomreaderfullsession-2-mabd 2527
120310 25
SWOT Analysis
Strengths Weaknesses
OpportunitiesS-O strategies W-O strategies
ThreatsS-T strategies W-T strategies
The SWOT Matrix
882019 Session 2 - MABD
httpslidepdfcomreaderfullsession-2-mabd 2627
120310 26
SWOT Analysis
S-O strategies pursue opportunities that are agood fit to the companys strengths
W-O strategies overcome weaknesses topursue opportunities
S-T strategies identify ways that the firm canuse its strengths to reduce its vulnerability toexternal threats
W-T strategies establish a defensive plan toprevent the firms weaknesses from making it
highly susceptible to external threats
882019 Session 2 - MABD
httpslidepdfcomreaderfullsession-2-mabd 2727
120310 27
882019 Session 2 - MABD
httpslidepdfcomreaderfullsession-2-mabd 527
120310 5
KeyDifferentiators
Marketing and Sales Orientations
Marketing orientation gives long term profit because
customers do repeat purchases but sales orientation
gives short term profits
The market oriented firms conduct researches to find
out customer needs and wants unlike sales orientated
firms that conduct researches only to find out why
sales declined Marketing oriented firms believe that the customer
satisfaction is the thing that the customer wants unlike
sales oriented firms that believe in quality and profits
882019 Session 2 - MABD
httpslidepdfcomreaderfullsession-2-mabd 627
120310 6
The MarketingApproach
The marketing approach is all about understanding and satisfying
customer needs
It is a fundamental idea of marketing that organizations survive and
prosper through meeting the needs and wants of customers This
important perspective is commonly known as the Marketing Concept
The marketing concept is about matching a companys capabilities
with customer wants This matching process takes place in what is
called the marketing environment
Businesses do not undertake marketing activities alone They face
threats from competitors and changes in the political economic
social and technological environment All these factors have to be
taken into account as a business tries to match its capabilities with the
needs and wants of its target customers An organization that adopts the marketing concept accepts the needs
of potential customers as the basis for its operations Success is
dependent on satisfying customer needs
882019 Session 2 - MABD
httpslidepdfcomreaderfullsession-2-mabd 727
120310 7
The MarketingApproach
Need
A need is a basic requirement that an individual wishes to satisfy People have basicneeds for food shelter affection esteem and self-development Many of these needsare created from human biology and the nature of social relationships Customer needs are therefore very broad
WantA want is a desire for a specific product or service to satisfy the underlying need
For example consumers need to eat when they are hungry but what they want to eatand in what kind of environment will vary enormously For some eating at McDonaldssatisfies the need to meet hunger For others a micro waved ready-meal meets the
need Some consumers are never satisfied unless their food comes served with abottle of fine Chardonnay
Consumer wants are shaped by social and cultural forces the media and marketingactivities of businesses
DemandConsumer demand is a want for a specific product supported by an ability andwillingness to pay for it
For example many consumers around the globe want a Mercedes But relatively few
are able and willing to buy oneBusinesses therefore have not only to make products that consumers want but theyalso have to make them affordable to a sufficient number to create profitable demand
Businesses do not create customer needs or the social status in which customer needs are influenced It is not McDonalds that makes people hungry Howeverbusinesses do try to influence demand by designing products and services that are
AttractiveWork wellAffordable
Available
882019 Session 2 - MABD
httpslidepdfcomreaderfullsession-2-mabd 827
120310 8
The Value Chain
Specific interlinked activities through which an
organization can create competitive advantage are
Collectively termed as Value Chain
The aim of these activities is to generate value thatexceeds the cost of carrying out these activities thus
generating a profit margin
The value chain comprises of two groups of activities
Primary Activities
Support Activities
882019 Session 2 - MABD
httpslidepdfcomreaderfullsession-2-mabd 927
120310 9
The Value Chain
882019 Session 2 - MABD
httpslidepdfcomreaderfullsession-2-mabd 1027
120310 10
The Value Chain
Primary Activities Inbound logistics include the receiving warehousing
and inventory control of input materials Operations are the value-creating activities that
transform the inputs into the final product Outbound logistics are the activities required to get
the finished product to the customer includingwarehousing order fulfillment etc
Marketing amp Sales are those activities associated withgetting buyers to purchase the product including
channel selection advertising pricing etc Service activities are those that maintain and enhance
the products value including customer support repair services etc
882019 Session 2 - MABD
httpslidepdfcomreaderfullsession-2-mabd 1127
120310 11
The Value Chain
Support Activities Procurement - the function of purchasing the
raw materials and other inputs used in the value-creating activities
Technology Development - includes researchand development process automation and other technology development used to support thevalue-chain activities
Human Resource Management - the activities
associated with recruiting development andcompensation of employees
Firm Infrastructure - includes activities such asfinance legal quality management etc
882019 Session 2 - MABD
httpslidepdfcomreaderfullsession-2-mabd 1227
120310 12
The Value Chain
Value Chain Analysis
In order to better understand the activities leading to a
competitive advantage one can begin with the generic value
chain and then identify the relevant firm-specific activities
Process flows can be mapped and these flows used toisolate the individual value-creating activities
Once the discrete activities are defined linkages between
activities should be identified A linkage exists if the
performance or cost of one activity affects that of another
Competitive advantage may be obtained by optimizing and
coordinating linked activities
The value chain also is useful in outsourcing decisions
Understanding the linkages between activities can lead to
more optimal make-or-buy decisions that can result in either a
cost advantage or a differentiation advantage
882019 Session 2 - MABD
httpslidepdfcomreaderfullsession-2-mabd 1327
120310 13
The Value Chain
The Value System
882019 Session 2 - MABD
httpslidepdfcomreaderfullsession-2-mabd 1427
120310 14
The Value Chain
The Value System
The firms value chain links to the value
chains of upstream suppliers and
downstream buyers The result is a
larger stream of activities known as
the value system The development of a
competitive advantage depends not only
on the firm-specific value chain but alsoon the value system of which the firm is
a part
882019 Session 2 - MABD
httpslidepdfcomreaderfullsession-2-mabd 1527
120310 15
The MarketingPlan
882019 Session 2 - MABD
httpslidepdfcomreaderfullsession-2-mabd 1627
120310 16
The MarketingPlan
The Marketing Plan is a highly detailed heavilyresearched and hopefully well written report thatmany inside and possibly outside the organization willevaluate It is an essential document for both largecorporate marketing departments and for startup
companies Essentially the Marketing Plan forces the marketing personnel to look internally in
order to fully understand the results of past marketingdecisions
forces the marketing personnel to look externally in
order to fully understand the market in which theyoperate sets future goals and provides direction for future
marketing efforts that everyone within theorganization should understand and support
is a key component in obtaining funding to pursue
new initiatives
882019 Session 2 - MABD
httpslidepdfcomreaderfullsession-2-mabd 1727
120310 17
The MarketingPlan
The Marketing Plan is generally undertaken for one of the following reasons
Needed as part of the yearly planning process within the marketing functional area
Needed for a specialized strategy to introduce something new such as new product planning entering new markets or trying a new strategy to fix an existing problem
Is a component within an overall business plan such as a new business proposal tothe financial community
There are many ways to develop and format a marketing plan The approach taken here isto present a 6-Part plan that includes Purpose and Mission Situational Analysis
Marketing Strategy and Objectives
Tactical Programs
Budgets Performance Analysis and Implementation
Additional Consideration
The marketing Plan Outline
882019 Session 2 - MABD
httpslidepdfcomreaderfullsession-2-mabd 1827
120310 18
SWOT Analysis
A scan of the internal and external environmentis an important part of the strategic planningprocess Environmental factors internal to thefirm usually can be classified as strengths (S) or weaknesses (W) and those external to the firm
can be classified as opportunities (O) or threats(T) Such an analysis of the strategicenvironment is referred to as a SWOT analysis
The SWOT analysis provides information that is
helpful in matching the firms resources andcapabilities to the competitive environment inwhich it operates As such it is instrumental instrategy formulation and selection The followingdiagram shows how a SWOT analysis fits into anenvironmental scan
882019 Session 2 - MABD
httpslidepdfcomreaderfullsession-2-mabd 1927
120310 19
SWOT Analysis
Environmental Scan
Internal
Analysis
External
Analysis
Strengths
Weaknesses
Opportunities
Threats
SWOT Matrix
882019 Session 2 - MABD
httpslidepdfcomreaderfullsession-2-mabd 2027
120310 20
SWOT Analysis
Strengths
A firms strengths are its resources and
capabilities that can be used as a basis for
developing a competitive advantage Examples
of such strengths include
patents
strong brand names
good reputation among customers cost advantages from proprietary know-how
exclusive access to high grade natural resources
favorable access to distribution networks
882019 Session 2 - MABD
httpslidepdfcomreaderfullsession-2-mabd 2127
120310 21
SWOT Analysis
Weaknesses
The absence of certain strengths may be viewed as a weakness For example each of the following may be considered weaknesses
lack of patent protection a weak brand name poor reputation among customers high cost structure lack of access to the best natural resources lack of access to key distribution channels
In some cases a weakness may be the flip side of a strength Takethe case in which a firm has a large amount of manufacturingcapacity While this capacity may be considered a strength thatcompetitors do not share it also may be a considered a weakness if the large investment in manufacturing capacity prevents the firm fromreacting quickly to changes in the strategic environment
882019 Session 2 - MABD
httpslidepdfcomreaderfullsession-2-mabd 2227
120310 22
SWOT Analysis
Opportunities
The external environmental analysis may
reveal certain new opportunities for profitand growth Some examples of suchopportunities include
an unfulfilled customer need arrival of new technologies loosening of regulations removal of international trade barriers
882019 Session 2 - MABD
httpslidepdfcomreaderfullsession-2-mabd 2327
120310 23
SWOT Analysis
Threats
Changes in the external environmental
also may present threats to the firm Someexamples of such threats include shifts in consumer tastes away from the
firms products emergence of substitute products new regulations increased trade barriers
882019 Session 2 - MABD
httpslidepdfcomreaderfullsession-2-mabd 2427
120310 24
SWOT Analysis
The SWOT Matrix
A firm should not necessarily pursue the more lucrativeopportunities Rather it may have a better chance atdeveloping a competitive advantage by identifying a fit
between the firms strengths and upcomingopportunities In some cases the firm can overcome aweakness in order to prepare itself to pursue acompelling opportunity
To develop strategies that take into account the SWOTprofile a matrix of these factors can be constructedThe SWOT matrix (also known as a TOWS Matrix)
882019 Session 2 - MABD
httpslidepdfcomreaderfullsession-2-mabd 2527
120310 25
SWOT Analysis
Strengths Weaknesses
OpportunitiesS-O strategies W-O strategies
ThreatsS-T strategies W-T strategies
The SWOT Matrix
882019 Session 2 - MABD
httpslidepdfcomreaderfullsession-2-mabd 2627
120310 26
SWOT Analysis
S-O strategies pursue opportunities that are agood fit to the companys strengths
W-O strategies overcome weaknesses topursue opportunities
S-T strategies identify ways that the firm canuse its strengths to reduce its vulnerability toexternal threats
W-T strategies establish a defensive plan toprevent the firms weaknesses from making it
highly susceptible to external threats
882019 Session 2 - MABD
httpslidepdfcomreaderfullsession-2-mabd 2727
120310 27
882019 Session 2 - MABD
httpslidepdfcomreaderfullsession-2-mabd 627
120310 6
The MarketingApproach
The marketing approach is all about understanding and satisfying
customer needs
It is a fundamental idea of marketing that organizations survive and
prosper through meeting the needs and wants of customers This
important perspective is commonly known as the Marketing Concept
The marketing concept is about matching a companys capabilities
with customer wants This matching process takes place in what is
called the marketing environment
Businesses do not undertake marketing activities alone They face
threats from competitors and changes in the political economic
social and technological environment All these factors have to be
taken into account as a business tries to match its capabilities with the
needs and wants of its target customers An organization that adopts the marketing concept accepts the needs
of potential customers as the basis for its operations Success is
dependent on satisfying customer needs
882019 Session 2 - MABD
httpslidepdfcomreaderfullsession-2-mabd 727
120310 7
The MarketingApproach
Need
A need is a basic requirement that an individual wishes to satisfy People have basicneeds for food shelter affection esteem and self-development Many of these needsare created from human biology and the nature of social relationships Customer needs are therefore very broad
WantA want is a desire for a specific product or service to satisfy the underlying need
For example consumers need to eat when they are hungry but what they want to eatand in what kind of environment will vary enormously For some eating at McDonaldssatisfies the need to meet hunger For others a micro waved ready-meal meets the
need Some consumers are never satisfied unless their food comes served with abottle of fine Chardonnay
Consumer wants are shaped by social and cultural forces the media and marketingactivities of businesses
DemandConsumer demand is a want for a specific product supported by an ability andwillingness to pay for it
For example many consumers around the globe want a Mercedes But relatively few
are able and willing to buy oneBusinesses therefore have not only to make products that consumers want but theyalso have to make them affordable to a sufficient number to create profitable demand
Businesses do not create customer needs or the social status in which customer needs are influenced It is not McDonalds that makes people hungry Howeverbusinesses do try to influence demand by designing products and services that are
AttractiveWork wellAffordable
Available
882019 Session 2 - MABD
httpslidepdfcomreaderfullsession-2-mabd 827
120310 8
The Value Chain
Specific interlinked activities through which an
organization can create competitive advantage are
Collectively termed as Value Chain
The aim of these activities is to generate value thatexceeds the cost of carrying out these activities thus
generating a profit margin
The value chain comprises of two groups of activities
Primary Activities
Support Activities
882019 Session 2 - MABD
httpslidepdfcomreaderfullsession-2-mabd 927
120310 9
The Value Chain
882019 Session 2 - MABD
httpslidepdfcomreaderfullsession-2-mabd 1027
120310 10
The Value Chain
Primary Activities Inbound logistics include the receiving warehousing
and inventory control of input materials Operations are the value-creating activities that
transform the inputs into the final product Outbound logistics are the activities required to get
the finished product to the customer includingwarehousing order fulfillment etc
Marketing amp Sales are those activities associated withgetting buyers to purchase the product including
channel selection advertising pricing etc Service activities are those that maintain and enhance
the products value including customer support repair services etc
882019 Session 2 - MABD
httpslidepdfcomreaderfullsession-2-mabd 1127
120310 11
The Value Chain
Support Activities Procurement - the function of purchasing the
raw materials and other inputs used in the value-creating activities
Technology Development - includes researchand development process automation and other technology development used to support thevalue-chain activities
Human Resource Management - the activities
associated with recruiting development andcompensation of employees
Firm Infrastructure - includes activities such asfinance legal quality management etc
882019 Session 2 - MABD
httpslidepdfcomreaderfullsession-2-mabd 1227
120310 12
The Value Chain
Value Chain Analysis
In order to better understand the activities leading to a
competitive advantage one can begin with the generic value
chain and then identify the relevant firm-specific activities
Process flows can be mapped and these flows used toisolate the individual value-creating activities
Once the discrete activities are defined linkages between
activities should be identified A linkage exists if the
performance or cost of one activity affects that of another
Competitive advantage may be obtained by optimizing and
coordinating linked activities
The value chain also is useful in outsourcing decisions
Understanding the linkages between activities can lead to
more optimal make-or-buy decisions that can result in either a
cost advantage or a differentiation advantage
882019 Session 2 - MABD
httpslidepdfcomreaderfullsession-2-mabd 1327
120310 13
The Value Chain
The Value System
882019 Session 2 - MABD
httpslidepdfcomreaderfullsession-2-mabd 1427
120310 14
The Value Chain
The Value System
The firms value chain links to the value
chains of upstream suppliers and
downstream buyers The result is a
larger stream of activities known as
the value system The development of a
competitive advantage depends not only
on the firm-specific value chain but alsoon the value system of which the firm is
a part
882019 Session 2 - MABD
httpslidepdfcomreaderfullsession-2-mabd 1527
120310 15
The MarketingPlan
882019 Session 2 - MABD
httpslidepdfcomreaderfullsession-2-mabd 1627
120310 16
The MarketingPlan
The Marketing Plan is a highly detailed heavilyresearched and hopefully well written report thatmany inside and possibly outside the organization willevaluate It is an essential document for both largecorporate marketing departments and for startup
companies Essentially the Marketing Plan forces the marketing personnel to look internally in
order to fully understand the results of past marketingdecisions
forces the marketing personnel to look externally in
order to fully understand the market in which theyoperate sets future goals and provides direction for future
marketing efforts that everyone within theorganization should understand and support
is a key component in obtaining funding to pursue
new initiatives
882019 Session 2 - MABD
httpslidepdfcomreaderfullsession-2-mabd 1727
120310 17
The MarketingPlan
The Marketing Plan is generally undertaken for one of the following reasons
Needed as part of the yearly planning process within the marketing functional area
Needed for a specialized strategy to introduce something new such as new product planning entering new markets or trying a new strategy to fix an existing problem
Is a component within an overall business plan such as a new business proposal tothe financial community
There are many ways to develop and format a marketing plan The approach taken here isto present a 6-Part plan that includes Purpose and Mission Situational Analysis
Marketing Strategy and Objectives
Tactical Programs
Budgets Performance Analysis and Implementation
Additional Consideration
The marketing Plan Outline
882019 Session 2 - MABD
httpslidepdfcomreaderfullsession-2-mabd 1827
120310 18
SWOT Analysis
A scan of the internal and external environmentis an important part of the strategic planningprocess Environmental factors internal to thefirm usually can be classified as strengths (S) or weaknesses (W) and those external to the firm
can be classified as opportunities (O) or threats(T) Such an analysis of the strategicenvironment is referred to as a SWOT analysis
The SWOT analysis provides information that is
helpful in matching the firms resources andcapabilities to the competitive environment inwhich it operates As such it is instrumental instrategy formulation and selection The followingdiagram shows how a SWOT analysis fits into anenvironmental scan
882019 Session 2 - MABD
httpslidepdfcomreaderfullsession-2-mabd 1927
120310 19
SWOT Analysis
Environmental Scan
Internal
Analysis
External
Analysis
Strengths
Weaknesses
Opportunities
Threats
SWOT Matrix
882019 Session 2 - MABD
httpslidepdfcomreaderfullsession-2-mabd 2027
120310 20
SWOT Analysis
Strengths
A firms strengths are its resources and
capabilities that can be used as a basis for
developing a competitive advantage Examples
of such strengths include
patents
strong brand names
good reputation among customers cost advantages from proprietary know-how
exclusive access to high grade natural resources
favorable access to distribution networks
882019 Session 2 - MABD
httpslidepdfcomreaderfullsession-2-mabd 2127
120310 21
SWOT Analysis
Weaknesses
The absence of certain strengths may be viewed as a weakness For example each of the following may be considered weaknesses
lack of patent protection a weak brand name poor reputation among customers high cost structure lack of access to the best natural resources lack of access to key distribution channels
In some cases a weakness may be the flip side of a strength Takethe case in which a firm has a large amount of manufacturingcapacity While this capacity may be considered a strength thatcompetitors do not share it also may be a considered a weakness if the large investment in manufacturing capacity prevents the firm fromreacting quickly to changes in the strategic environment
882019 Session 2 - MABD
httpslidepdfcomreaderfullsession-2-mabd 2227
120310 22
SWOT Analysis
Opportunities
The external environmental analysis may
reveal certain new opportunities for profitand growth Some examples of suchopportunities include
an unfulfilled customer need arrival of new technologies loosening of regulations removal of international trade barriers
882019 Session 2 - MABD
httpslidepdfcomreaderfullsession-2-mabd 2327
120310 23
SWOT Analysis
Threats
Changes in the external environmental
also may present threats to the firm Someexamples of such threats include shifts in consumer tastes away from the
firms products emergence of substitute products new regulations increased trade barriers
882019 Session 2 - MABD
httpslidepdfcomreaderfullsession-2-mabd 2427
120310 24
SWOT Analysis
The SWOT Matrix
A firm should not necessarily pursue the more lucrativeopportunities Rather it may have a better chance atdeveloping a competitive advantage by identifying a fit
between the firms strengths and upcomingopportunities In some cases the firm can overcome aweakness in order to prepare itself to pursue acompelling opportunity
To develop strategies that take into account the SWOTprofile a matrix of these factors can be constructedThe SWOT matrix (also known as a TOWS Matrix)
882019 Session 2 - MABD
httpslidepdfcomreaderfullsession-2-mabd 2527
120310 25
SWOT Analysis
Strengths Weaknesses
OpportunitiesS-O strategies W-O strategies
ThreatsS-T strategies W-T strategies
The SWOT Matrix
882019 Session 2 - MABD
httpslidepdfcomreaderfullsession-2-mabd 2627
120310 26
SWOT Analysis
S-O strategies pursue opportunities that are agood fit to the companys strengths
W-O strategies overcome weaknesses topursue opportunities
S-T strategies identify ways that the firm canuse its strengths to reduce its vulnerability toexternal threats
W-T strategies establish a defensive plan toprevent the firms weaknesses from making it
highly susceptible to external threats
882019 Session 2 - MABD
httpslidepdfcomreaderfullsession-2-mabd 2727
120310 27
882019 Session 2 - MABD
httpslidepdfcomreaderfullsession-2-mabd 727
120310 7
The MarketingApproach
Need
A need is a basic requirement that an individual wishes to satisfy People have basicneeds for food shelter affection esteem and self-development Many of these needsare created from human biology and the nature of social relationships Customer needs are therefore very broad
WantA want is a desire for a specific product or service to satisfy the underlying need
For example consumers need to eat when they are hungry but what they want to eatand in what kind of environment will vary enormously For some eating at McDonaldssatisfies the need to meet hunger For others a micro waved ready-meal meets the
need Some consumers are never satisfied unless their food comes served with abottle of fine Chardonnay
Consumer wants are shaped by social and cultural forces the media and marketingactivities of businesses
DemandConsumer demand is a want for a specific product supported by an ability andwillingness to pay for it
For example many consumers around the globe want a Mercedes But relatively few
are able and willing to buy oneBusinesses therefore have not only to make products that consumers want but theyalso have to make them affordable to a sufficient number to create profitable demand
Businesses do not create customer needs or the social status in which customer needs are influenced It is not McDonalds that makes people hungry Howeverbusinesses do try to influence demand by designing products and services that are
AttractiveWork wellAffordable
Available
882019 Session 2 - MABD
httpslidepdfcomreaderfullsession-2-mabd 827
120310 8
The Value Chain
Specific interlinked activities through which an
organization can create competitive advantage are
Collectively termed as Value Chain
The aim of these activities is to generate value thatexceeds the cost of carrying out these activities thus
generating a profit margin
The value chain comprises of two groups of activities
Primary Activities
Support Activities
882019 Session 2 - MABD
httpslidepdfcomreaderfullsession-2-mabd 927
120310 9
The Value Chain
882019 Session 2 - MABD
httpslidepdfcomreaderfullsession-2-mabd 1027
120310 10
The Value Chain
Primary Activities Inbound logistics include the receiving warehousing
and inventory control of input materials Operations are the value-creating activities that
transform the inputs into the final product Outbound logistics are the activities required to get
the finished product to the customer includingwarehousing order fulfillment etc
Marketing amp Sales are those activities associated withgetting buyers to purchase the product including
channel selection advertising pricing etc Service activities are those that maintain and enhance
the products value including customer support repair services etc
882019 Session 2 - MABD
httpslidepdfcomreaderfullsession-2-mabd 1127
120310 11
The Value Chain
Support Activities Procurement - the function of purchasing the
raw materials and other inputs used in the value-creating activities
Technology Development - includes researchand development process automation and other technology development used to support thevalue-chain activities
Human Resource Management - the activities
associated with recruiting development andcompensation of employees
Firm Infrastructure - includes activities such asfinance legal quality management etc
882019 Session 2 - MABD
httpslidepdfcomreaderfullsession-2-mabd 1227
120310 12
The Value Chain
Value Chain Analysis
In order to better understand the activities leading to a
competitive advantage one can begin with the generic value
chain and then identify the relevant firm-specific activities
Process flows can be mapped and these flows used toisolate the individual value-creating activities
Once the discrete activities are defined linkages between
activities should be identified A linkage exists if the
performance or cost of one activity affects that of another
Competitive advantage may be obtained by optimizing and
coordinating linked activities
The value chain also is useful in outsourcing decisions
Understanding the linkages between activities can lead to
more optimal make-or-buy decisions that can result in either a
cost advantage or a differentiation advantage
882019 Session 2 - MABD
httpslidepdfcomreaderfullsession-2-mabd 1327
120310 13
The Value Chain
The Value System
882019 Session 2 - MABD
httpslidepdfcomreaderfullsession-2-mabd 1427
120310 14
The Value Chain
The Value System
The firms value chain links to the value
chains of upstream suppliers and
downstream buyers The result is a
larger stream of activities known as
the value system The development of a
competitive advantage depends not only
on the firm-specific value chain but alsoon the value system of which the firm is
a part
882019 Session 2 - MABD
httpslidepdfcomreaderfullsession-2-mabd 1527
120310 15
The MarketingPlan
882019 Session 2 - MABD
httpslidepdfcomreaderfullsession-2-mabd 1627
120310 16
The MarketingPlan
The Marketing Plan is a highly detailed heavilyresearched and hopefully well written report thatmany inside and possibly outside the organization willevaluate It is an essential document for both largecorporate marketing departments and for startup
companies Essentially the Marketing Plan forces the marketing personnel to look internally in
order to fully understand the results of past marketingdecisions
forces the marketing personnel to look externally in
order to fully understand the market in which theyoperate sets future goals and provides direction for future
marketing efforts that everyone within theorganization should understand and support
is a key component in obtaining funding to pursue
new initiatives
882019 Session 2 - MABD
httpslidepdfcomreaderfullsession-2-mabd 1727
120310 17
The MarketingPlan
The Marketing Plan is generally undertaken for one of the following reasons
Needed as part of the yearly planning process within the marketing functional area
Needed for a specialized strategy to introduce something new such as new product planning entering new markets or trying a new strategy to fix an existing problem
Is a component within an overall business plan such as a new business proposal tothe financial community
There are many ways to develop and format a marketing plan The approach taken here isto present a 6-Part plan that includes Purpose and Mission Situational Analysis
Marketing Strategy and Objectives
Tactical Programs
Budgets Performance Analysis and Implementation
Additional Consideration
The marketing Plan Outline
882019 Session 2 - MABD
httpslidepdfcomreaderfullsession-2-mabd 1827
120310 18
SWOT Analysis
A scan of the internal and external environmentis an important part of the strategic planningprocess Environmental factors internal to thefirm usually can be classified as strengths (S) or weaknesses (W) and those external to the firm
can be classified as opportunities (O) or threats(T) Such an analysis of the strategicenvironment is referred to as a SWOT analysis
The SWOT analysis provides information that is
helpful in matching the firms resources andcapabilities to the competitive environment inwhich it operates As such it is instrumental instrategy formulation and selection The followingdiagram shows how a SWOT analysis fits into anenvironmental scan
882019 Session 2 - MABD
httpslidepdfcomreaderfullsession-2-mabd 1927
120310 19
SWOT Analysis
Environmental Scan
Internal
Analysis
External
Analysis
Strengths
Weaknesses
Opportunities
Threats
SWOT Matrix
882019 Session 2 - MABD
httpslidepdfcomreaderfullsession-2-mabd 2027
120310 20
SWOT Analysis
Strengths
A firms strengths are its resources and
capabilities that can be used as a basis for
developing a competitive advantage Examples
of such strengths include
patents
strong brand names
good reputation among customers cost advantages from proprietary know-how
exclusive access to high grade natural resources
favorable access to distribution networks
882019 Session 2 - MABD
httpslidepdfcomreaderfullsession-2-mabd 2127
120310 21
SWOT Analysis
Weaknesses
The absence of certain strengths may be viewed as a weakness For example each of the following may be considered weaknesses
lack of patent protection a weak brand name poor reputation among customers high cost structure lack of access to the best natural resources lack of access to key distribution channels
In some cases a weakness may be the flip side of a strength Takethe case in which a firm has a large amount of manufacturingcapacity While this capacity may be considered a strength thatcompetitors do not share it also may be a considered a weakness if the large investment in manufacturing capacity prevents the firm fromreacting quickly to changes in the strategic environment
882019 Session 2 - MABD
httpslidepdfcomreaderfullsession-2-mabd 2227
120310 22
SWOT Analysis
Opportunities
The external environmental analysis may
reveal certain new opportunities for profitand growth Some examples of suchopportunities include
an unfulfilled customer need arrival of new technologies loosening of regulations removal of international trade barriers
882019 Session 2 - MABD
httpslidepdfcomreaderfullsession-2-mabd 2327
120310 23
SWOT Analysis
Threats
Changes in the external environmental
also may present threats to the firm Someexamples of such threats include shifts in consumer tastes away from the
firms products emergence of substitute products new regulations increased trade barriers
882019 Session 2 - MABD
httpslidepdfcomreaderfullsession-2-mabd 2427
120310 24
SWOT Analysis
The SWOT Matrix
A firm should not necessarily pursue the more lucrativeopportunities Rather it may have a better chance atdeveloping a competitive advantage by identifying a fit
between the firms strengths and upcomingopportunities In some cases the firm can overcome aweakness in order to prepare itself to pursue acompelling opportunity
To develop strategies that take into account the SWOTprofile a matrix of these factors can be constructedThe SWOT matrix (also known as a TOWS Matrix)
882019 Session 2 - MABD
httpslidepdfcomreaderfullsession-2-mabd 2527
120310 25
SWOT Analysis
Strengths Weaknesses
OpportunitiesS-O strategies W-O strategies
ThreatsS-T strategies W-T strategies
The SWOT Matrix
882019 Session 2 - MABD
httpslidepdfcomreaderfullsession-2-mabd 2627
120310 26
SWOT Analysis
S-O strategies pursue opportunities that are agood fit to the companys strengths
W-O strategies overcome weaknesses topursue opportunities
S-T strategies identify ways that the firm canuse its strengths to reduce its vulnerability toexternal threats
W-T strategies establish a defensive plan toprevent the firms weaknesses from making it
highly susceptible to external threats
882019 Session 2 - MABD
httpslidepdfcomreaderfullsession-2-mabd 2727
120310 27
882019 Session 2 - MABD
httpslidepdfcomreaderfullsession-2-mabd 827
120310 8
The Value Chain
Specific interlinked activities through which an
organization can create competitive advantage are
Collectively termed as Value Chain
The aim of these activities is to generate value thatexceeds the cost of carrying out these activities thus
generating a profit margin
The value chain comprises of two groups of activities
Primary Activities
Support Activities
882019 Session 2 - MABD
httpslidepdfcomreaderfullsession-2-mabd 927
120310 9
The Value Chain
882019 Session 2 - MABD
httpslidepdfcomreaderfullsession-2-mabd 1027
120310 10
The Value Chain
Primary Activities Inbound logistics include the receiving warehousing
and inventory control of input materials Operations are the value-creating activities that
transform the inputs into the final product Outbound logistics are the activities required to get
the finished product to the customer includingwarehousing order fulfillment etc
Marketing amp Sales are those activities associated withgetting buyers to purchase the product including
channel selection advertising pricing etc Service activities are those that maintain and enhance
the products value including customer support repair services etc
882019 Session 2 - MABD
httpslidepdfcomreaderfullsession-2-mabd 1127
120310 11
The Value Chain
Support Activities Procurement - the function of purchasing the
raw materials and other inputs used in the value-creating activities
Technology Development - includes researchand development process automation and other technology development used to support thevalue-chain activities
Human Resource Management - the activities
associated with recruiting development andcompensation of employees
Firm Infrastructure - includes activities such asfinance legal quality management etc
882019 Session 2 - MABD
httpslidepdfcomreaderfullsession-2-mabd 1227
120310 12
The Value Chain
Value Chain Analysis
In order to better understand the activities leading to a
competitive advantage one can begin with the generic value
chain and then identify the relevant firm-specific activities
Process flows can be mapped and these flows used toisolate the individual value-creating activities
Once the discrete activities are defined linkages between
activities should be identified A linkage exists if the
performance or cost of one activity affects that of another
Competitive advantage may be obtained by optimizing and
coordinating linked activities
The value chain also is useful in outsourcing decisions
Understanding the linkages between activities can lead to
more optimal make-or-buy decisions that can result in either a
cost advantage or a differentiation advantage
882019 Session 2 - MABD
httpslidepdfcomreaderfullsession-2-mabd 1327
120310 13
The Value Chain
The Value System
882019 Session 2 - MABD
httpslidepdfcomreaderfullsession-2-mabd 1427
120310 14
The Value Chain
The Value System
The firms value chain links to the value
chains of upstream suppliers and
downstream buyers The result is a
larger stream of activities known as
the value system The development of a
competitive advantage depends not only
on the firm-specific value chain but alsoon the value system of which the firm is
a part
882019 Session 2 - MABD
httpslidepdfcomreaderfullsession-2-mabd 1527
120310 15
The MarketingPlan
882019 Session 2 - MABD
httpslidepdfcomreaderfullsession-2-mabd 1627
120310 16
The MarketingPlan
The Marketing Plan is a highly detailed heavilyresearched and hopefully well written report thatmany inside and possibly outside the organization willevaluate It is an essential document for both largecorporate marketing departments and for startup
companies Essentially the Marketing Plan forces the marketing personnel to look internally in
order to fully understand the results of past marketingdecisions
forces the marketing personnel to look externally in
order to fully understand the market in which theyoperate sets future goals and provides direction for future
marketing efforts that everyone within theorganization should understand and support
is a key component in obtaining funding to pursue
new initiatives
882019 Session 2 - MABD
httpslidepdfcomreaderfullsession-2-mabd 1727
120310 17
The MarketingPlan
The Marketing Plan is generally undertaken for one of the following reasons
Needed as part of the yearly planning process within the marketing functional area
Needed for a specialized strategy to introduce something new such as new product planning entering new markets or trying a new strategy to fix an existing problem
Is a component within an overall business plan such as a new business proposal tothe financial community
There are many ways to develop and format a marketing plan The approach taken here isto present a 6-Part plan that includes Purpose and Mission Situational Analysis
Marketing Strategy and Objectives
Tactical Programs
Budgets Performance Analysis and Implementation
Additional Consideration
The marketing Plan Outline
882019 Session 2 - MABD
httpslidepdfcomreaderfullsession-2-mabd 1827
120310 18
SWOT Analysis
A scan of the internal and external environmentis an important part of the strategic planningprocess Environmental factors internal to thefirm usually can be classified as strengths (S) or weaknesses (W) and those external to the firm
can be classified as opportunities (O) or threats(T) Such an analysis of the strategicenvironment is referred to as a SWOT analysis
The SWOT analysis provides information that is
helpful in matching the firms resources andcapabilities to the competitive environment inwhich it operates As such it is instrumental instrategy formulation and selection The followingdiagram shows how a SWOT analysis fits into anenvironmental scan
882019 Session 2 - MABD
httpslidepdfcomreaderfullsession-2-mabd 1927
120310 19
SWOT Analysis
Environmental Scan
Internal
Analysis
External
Analysis
Strengths
Weaknesses
Opportunities
Threats
SWOT Matrix
882019 Session 2 - MABD
httpslidepdfcomreaderfullsession-2-mabd 2027
120310 20
SWOT Analysis
Strengths
A firms strengths are its resources and
capabilities that can be used as a basis for
developing a competitive advantage Examples
of such strengths include
patents
strong brand names
good reputation among customers cost advantages from proprietary know-how
exclusive access to high grade natural resources
favorable access to distribution networks
882019 Session 2 - MABD
httpslidepdfcomreaderfullsession-2-mabd 2127
120310 21
SWOT Analysis
Weaknesses
The absence of certain strengths may be viewed as a weakness For example each of the following may be considered weaknesses
lack of patent protection a weak brand name poor reputation among customers high cost structure lack of access to the best natural resources lack of access to key distribution channels
In some cases a weakness may be the flip side of a strength Takethe case in which a firm has a large amount of manufacturingcapacity While this capacity may be considered a strength thatcompetitors do not share it also may be a considered a weakness if the large investment in manufacturing capacity prevents the firm fromreacting quickly to changes in the strategic environment
882019 Session 2 - MABD
httpslidepdfcomreaderfullsession-2-mabd 2227
120310 22
SWOT Analysis
Opportunities
The external environmental analysis may
reveal certain new opportunities for profitand growth Some examples of suchopportunities include
an unfulfilled customer need arrival of new technologies loosening of regulations removal of international trade barriers
882019 Session 2 - MABD
httpslidepdfcomreaderfullsession-2-mabd 2327
120310 23
SWOT Analysis
Threats
Changes in the external environmental
also may present threats to the firm Someexamples of such threats include shifts in consumer tastes away from the
firms products emergence of substitute products new regulations increased trade barriers
882019 Session 2 - MABD
httpslidepdfcomreaderfullsession-2-mabd 2427
120310 24
SWOT Analysis
The SWOT Matrix
A firm should not necessarily pursue the more lucrativeopportunities Rather it may have a better chance atdeveloping a competitive advantage by identifying a fit
between the firms strengths and upcomingopportunities In some cases the firm can overcome aweakness in order to prepare itself to pursue acompelling opportunity
To develop strategies that take into account the SWOTprofile a matrix of these factors can be constructedThe SWOT matrix (also known as a TOWS Matrix)
882019 Session 2 - MABD
httpslidepdfcomreaderfullsession-2-mabd 2527
120310 25
SWOT Analysis
Strengths Weaknesses
OpportunitiesS-O strategies W-O strategies
ThreatsS-T strategies W-T strategies
The SWOT Matrix
882019 Session 2 - MABD
httpslidepdfcomreaderfullsession-2-mabd 2627
120310 26
SWOT Analysis
S-O strategies pursue opportunities that are agood fit to the companys strengths
W-O strategies overcome weaknesses topursue opportunities
S-T strategies identify ways that the firm canuse its strengths to reduce its vulnerability toexternal threats
W-T strategies establish a defensive plan toprevent the firms weaknesses from making it
highly susceptible to external threats
882019 Session 2 - MABD
httpslidepdfcomreaderfullsession-2-mabd 2727
120310 27
882019 Session 2 - MABD
httpslidepdfcomreaderfullsession-2-mabd 927
120310 9
The Value Chain
882019 Session 2 - MABD
httpslidepdfcomreaderfullsession-2-mabd 1027
120310 10
The Value Chain
Primary Activities Inbound logistics include the receiving warehousing
and inventory control of input materials Operations are the value-creating activities that
transform the inputs into the final product Outbound logistics are the activities required to get
the finished product to the customer includingwarehousing order fulfillment etc
Marketing amp Sales are those activities associated withgetting buyers to purchase the product including
channel selection advertising pricing etc Service activities are those that maintain and enhance
the products value including customer support repair services etc
882019 Session 2 - MABD
httpslidepdfcomreaderfullsession-2-mabd 1127
120310 11
The Value Chain
Support Activities Procurement - the function of purchasing the
raw materials and other inputs used in the value-creating activities
Technology Development - includes researchand development process automation and other technology development used to support thevalue-chain activities
Human Resource Management - the activities
associated with recruiting development andcompensation of employees
Firm Infrastructure - includes activities such asfinance legal quality management etc
882019 Session 2 - MABD
httpslidepdfcomreaderfullsession-2-mabd 1227
120310 12
The Value Chain
Value Chain Analysis
In order to better understand the activities leading to a
competitive advantage one can begin with the generic value
chain and then identify the relevant firm-specific activities
Process flows can be mapped and these flows used toisolate the individual value-creating activities
Once the discrete activities are defined linkages between
activities should be identified A linkage exists if the
performance or cost of one activity affects that of another
Competitive advantage may be obtained by optimizing and
coordinating linked activities
The value chain also is useful in outsourcing decisions
Understanding the linkages between activities can lead to
more optimal make-or-buy decisions that can result in either a
cost advantage or a differentiation advantage
882019 Session 2 - MABD
httpslidepdfcomreaderfullsession-2-mabd 1327
120310 13
The Value Chain
The Value System
882019 Session 2 - MABD
httpslidepdfcomreaderfullsession-2-mabd 1427
120310 14
The Value Chain
The Value System
The firms value chain links to the value
chains of upstream suppliers and
downstream buyers The result is a
larger stream of activities known as
the value system The development of a
competitive advantage depends not only
on the firm-specific value chain but alsoon the value system of which the firm is
a part
882019 Session 2 - MABD
httpslidepdfcomreaderfullsession-2-mabd 1527
120310 15
The MarketingPlan
882019 Session 2 - MABD
httpslidepdfcomreaderfullsession-2-mabd 1627
120310 16
The MarketingPlan
The Marketing Plan is a highly detailed heavilyresearched and hopefully well written report thatmany inside and possibly outside the organization willevaluate It is an essential document for both largecorporate marketing departments and for startup
companies Essentially the Marketing Plan forces the marketing personnel to look internally in
order to fully understand the results of past marketingdecisions
forces the marketing personnel to look externally in
order to fully understand the market in which theyoperate sets future goals and provides direction for future
marketing efforts that everyone within theorganization should understand and support
is a key component in obtaining funding to pursue
new initiatives
882019 Session 2 - MABD
httpslidepdfcomreaderfullsession-2-mabd 1727
120310 17
The MarketingPlan
The Marketing Plan is generally undertaken for one of the following reasons
Needed as part of the yearly planning process within the marketing functional area
Needed for a specialized strategy to introduce something new such as new product planning entering new markets or trying a new strategy to fix an existing problem
Is a component within an overall business plan such as a new business proposal tothe financial community
There are many ways to develop and format a marketing plan The approach taken here isto present a 6-Part plan that includes Purpose and Mission Situational Analysis
Marketing Strategy and Objectives
Tactical Programs
Budgets Performance Analysis and Implementation
Additional Consideration
The marketing Plan Outline
882019 Session 2 - MABD
httpslidepdfcomreaderfullsession-2-mabd 1827
120310 18
SWOT Analysis
A scan of the internal and external environmentis an important part of the strategic planningprocess Environmental factors internal to thefirm usually can be classified as strengths (S) or weaknesses (W) and those external to the firm
can be classified as opportunities (O) or threats(T) Such an analysis of the strategicenvironment is referred to as a SWOT analysis
The SWOT analysis provides information that is
helpful in matching the firms resources andcapabilities to the competitive environment inwhich it operates As such it is instrumental instrategy formulation and selection The followingdiagram shows how a SWOT analysis fits into anenvironmental scan
882019 Session 2 - MABD
httpslidepdfcomreaderfullsession-2-mabd 1927
120310 19
SWOT Analysis
Environmental Scan
Internal
Analysis
External
Analysis
Strengths
Weaknesses
Opportunities
Threats
SWOT Matrix
882019 Session 2 - MABD
httpslidepdfcomreaderfullsession-2-mabd 2027
120310 20
SWOT Analysis
Strengths
A firms strengths are its resources and
capabilities that can be used as a basis for
developing a competitive advantage Examples
of such strengths include
patents
strong brand names
good reputation among customers cost advantages from proprietary know-how
exclusive access to high grade natural resources
favorable access to distribution networks
882019 Session 2 - MABD
httpslidepdfcomreaderfullsession-2-mabd 2127
120310 21
SWOT Analysis
Weaknesses
The absence of certain strengths may be viewed as a weakness For example each of the following may be considered weaknesses
lack of patent protection a weak brand name poor reputation among customers high cost structure lack of access to the best natural resources lack of access to key distribution channels
In some cases a weakness may be the flip side of a strength Takethe case in which a firm has a large amount of manufacturingcapacity While this capacity may be considered a strength thatcompetitors do not share it also may be a considered a weakness if the large investment in manufacturing capacity prevents the firm fromreacting quickly to changes in the strategic environment
882019 Session 2 - MABD
httpslidepdfcomreaderfullsession-2-mabd 2227
120310 22
SWOT Analysis
Opportunities
The external environmental analysis may
reveal certain new opportunities for profitand growth Some examples of suchopportunities include
an unfulfilled customer need arrival of new technologies loosening of regulations removal of international trade barriers
882019 Session 2 - MABD
httpslidepdfcomreaderfullsession-2-mabd 2327
120310 23
SWOT Analysis
Threats
Changes in the external environmental
also may present threats to the firm Someexamples of such threats include shifts in consumer tastes away from the
firms products emergence of substitute products new regulations increased trade barriers
882019 Session 2 - MABD
httpslidepdfcomreaderfullsession-2-mabd 2427
120310 24
SWOT Analysis
The SWOT Matrix
A firm should not necessarily pursue the more lucrativeopportunities Rather it may have a better chance atdeveloping a competitive advantage by identifying a fit
between the firms strengths and upcomingopportunities In some cases the firm can overcome aweakness in order to prepare itself to pursue acompelling opportunity
To develop strategies that take into account the SWOTprofile a matrix of these factors can be constructedThe SWOT matrix (also known as a TOWS Matrix)
882019 Session 2 - MABD
httpslidepdfcomreaderfullsession-2-mabd 2527
120310 25
SWOT Analysis
Strengths Weaknesses
OpportunitiesS-O strategies W-O strategies
ThreatsS-T strategies W-T strategies
The SWOT Matrix
882019 Session 2 - MABD
httpslidepdfcomreaderfullsession-2-mabd 2627
120310 26
SWOT Analysis
S-O strategies pursue opportunities that are agood fit to the companys strengths
W-O strategies overcome weaknesses topursue opportunities
S-T strategies identify ways that the firm canuse its strengths to reduce its vulnerability toexternal threats
W-T strategies establish a defensive plan toprevent the firms weaknesses from making it
highly susceptible to external threats
882019 Session 2 - MABD
httpslidepdfcomreaderfullsession-2-mabd 2727
120310 27
882019 Session 2 - MABD
httpslidepdfcomreaderfullsession-2-mabd 1027
120310 10
The Value Chain
Primary Activities Inbound logistics include the receiving warehousing
and inventory control of input materials Operations are the value-creating activities that
transform the inputs into the final product Outbound logistics are the activities required to get
the finished product to the customer includingwarehousing order fulfillment etc
Marketing amp Sales are those activities associated withgetting buyers to purchase the product including
channel selection advertising pricing etc Service activities are those that maintain and enhance
the products value including customer support repair services etc
882019 Session 2 - MABD
httpslidepdfcomreaderfullsession-2-mabd 1127
120310 11
The Value Chain
Support Activities Procurement - the function of purchasing the
raw materials and other inputs used in the value-creating activities
Technology Development - includes researchand development process automation and other technology development used to support thevalue-chain activities
Human Resource Management - the activities
associated with recruiting development andcompensation of employees
Firm Infrastructure - includes activities such asfinance legal quality management etc
882019 Session 2 - MABD
httpslidepdfcomreaderfullsession-2-mabd 1227
120310 12
The Value Chain
Value Chain Analysis
In order to better understand the activities leading to a
competitive advantage one can begin with the generic value
chain and then identify the relevant firm-specific activities
Process flows can be mapped and these flows used toisolate the individual value-creating activities
Once the discrete activities are defined linkages between
activities should be identified A linkage exists if the
performance or cost of one activity affects that of another
Competitive advantage may be obtained by optimizing and
coordinating linked activities
The value chain also is useful in outsourcing decisions
Understanding the linkages between activities can lead to
more optimal make-or-buy decisions that can result in either a
cost advantage or a differentiation advantage
882019 Session 2 - MABD
httpslidepdfcomreaderfullsession-2-mabd 1327
120310 13
The Value Chain
The Value System
882019 Session 2 - MABD
httpslidepdfcomreaderfullsession-2-mabd 1427
120310 14
The Value Chain
The Value System
The firms value chain links to the value
chains of upstream suppliers and
downstream buyers The result is a
larger stream of activities known as
the value system The development of a
competitive advantage depends not only
on the firm-specific value chain but alsoon the value system of which the firm is
a part
882019 Session 2 - MABD
httpslidepdfcomreaderfullsession-2-mabd 1527
120310 15
The MarketingPlan
882019 Session 2 - MABD
httpslidepdfcomreaderfullsession-2-mabd 1627
120310 16
The MarketingPlan
The Marketing Plan is a highly detailed heavilyresearched and hopefully well written report thatmany inside and possibly outside the organization willevaluate It is an essential document for both largecorporate marketing departments and for startup
companies Essentially the Marketing Plan forces the marketing personnel to look internally in
order to fully understand the results of past marketingdecisions
forces the marketing personnel to look externally in
order to fully understand the market in which theyoperate sets future goals and provides direction for future
marketing efforts that everyone within theorganization should understand and support
is a key component in obtaining funding to pursue
new initiatives
882019 Session 2 - MABD
httpslidepdfcomreaderfullsession-2-mabd 1727
120310 17
The MarketingPlan
The Marketing Plan is generally undertaken for one of the following reasons
Needed as part of the yearly planning process within the marketing functional area
Needed for a specialized strategy to introduce something new such as new product planning entering new markets or trying a new strategy to fix an existing problem
Is a component within an overall business plan such as a new business proposal tothe financial community
There are many ways to develop and format a marketing plan The approach taken here isto present a 6-Part plan that includes Purpose and Mission Situational Analysis
Marketing Strategy and Objectives
Tactical Programs
Budgets Performance Analysis and Implementation
Additional Consideration
The marketing Plan Outline
882019 Session 2 - MABD
httpslidepdfcomreaderfullsession-2-mabd 1827
120310 18
SWOT Analysis
A scan of the internal and external environmentis an important part of the strategic planningprocess Environmental factors internal to thefirm usually can be classified as strengths (S) or weaknesses (W) and those external to the firm
can be classified as opportunities (O) or threats(T) Such an analysis of the strategicenvironment is referred to as a SWOT analysis
The SWOT analysis provides information that is
helpful in matching the firms resources andcapabilities to the competitive environment inwhich it operates As such it is instrumental instrategy formulation and selection The followingdiagram shows how a SWOT analysis fits into anenvironmental scan
882019 Session 2 - MABD
httpslidepdfcomreaderfullsession-2-mabd 1927
120310 19
SWOT Analysis
Environmental Scan
Internal
Analysis
External
Analysis
Strengths
Weaknesses
Opportunities
Threats
SWOT Matrix
882019 Session 2 - MABD
httpslidepdfcomreaderfullsession-2-mabd 2027
120310 20
SWOT Analysis
Strengths
A firms strengths are its resources and
capabilities that can be used as a basis for
developing a competitive advantage Examples
of such strengths include
patents
strong brand names
good reputation among customers cost advantages from proprietary know-how
exclusive access to high grade natural resources
favorable access to distribution networks
882019 Session 2 - MABD
httpslidepdfcomreaderfullsession-2-mabd 2127
120310 21
SWOT Analysis
Weaknesses
The absence of certain strengths may be viewed as a weakness For example each of the following may be considered weaknesses
lack of patent protection a weak brand name poor reputation among customers high cost structure lack of access to the best natural resources lack of access to key distribution channels
In some cases a weakness may be the flip side of a strength Takethe case in which a firm has a large amount of manufacturingcapacity While this capacity may be considered a strength thatcompetitors do not share it also may be a considered a weakness if the large investment in manufacturing capacity prevents the firm fromreacting quickly to changes in the strategic environment
882019 Session 2 - MABD
httpslidepdfcomreaderfullsession-2-mabd 2227
120310 22
SWOT Analysis
Opportunities
The external environmental analysis may
reveal certain new opportunities for profitand growth Some examples of suchopportunities include
an unfulfilled customer need arrival of new technologies loosening of regulations removal of international trade barriers
882019 Session 2 - MABD
httpslidepdfcomreaderfullsession-2-mabd 2327
120310 23
SWOT Analysis
Threats
Changes in the external environmental
also may present threats to the firm Someexamples of such threats include shifts in consumer tastes away from the
firms products emergence of substitute products new regulations increased trade barriers
882019 Session 2 - MABD
httpslidepdfcomreaderfullsession-2-mabd 2427
120310 24
SWOT Analysis
The SWOT Matrix
A firm should not necessarily pursue the more lucrativeopportunities Rather it may have a better chance atdeveloping a competitive advantage by identifying a fit
between the firms strengths and upcomingopportunities In some cases the firm can overcome aweakness in order to prepare itself to pursue acompelling opportunity
To develop strategies that take into account the SWOTprofile a matrix of these factors can be constructedThe SWOT matrix (also known as a TOWS Matrix)
882019 Session 2 - MABD
httpslidepdfcomreaderfullsession-2-mabd 2527
120310 25
SWOT Analysis
Strengths Weaknesses
OpportunitiesS-O strategies W-O strategies
ThreatsS-T strategies W-T strategies
The SWOT Matrix
882019 Session 2 - MABD
httpslidepdfcomreaderfullsession-2-mabd 2627
120310 26
SWOT Analysis
S-O strategies pursue opportunities that are agood fit to the companys strengths
W-O strategies overcome weaknesses topursue opportunities
S-T strategies identify ways that the firm canuse its strengths to reduce its vulnerability toexternal threats
W-T strategies establish a defensive plan toprevent the firms weaknesses from making it
highly susceptible to external threats
882019 Session 2 - MABD
httpslidepdfcomreaderfullsession-2-mabd 2727
120310 27
882019 Session 2 - MABD
httpslidepdfcomreaderfullsession-2-mabd 1127
120310 11
The Value Chain
Support Activities Procurement - the function of purchasing the
raw materials and other inputs used in the value-creating activities
Technology Development - includes researchand development process automation and other technology development used to support thevalue-chain activities
Human Resource Management - the activities
associated with recruiting development andcompensation of employees
Firm Infrastructure - includes activities such asfinance legal quality management etc
882019 Session 2 - MABD
httpslidepdfcomreaderfullsession-2-mabd 1227
120310 12
The Value Chain
Value Chain Analysis
In order to better understand the activities leading to a
competitive advantage one can begin with the generic value
chain and then identify the relevant firm-specific activities
Process flows can be mapped and these flows used toisolate the individual value-creating activities
Once the discrete activities are defined linkages between
activities should be identified A linkage exists if the
performance or cost of one activity affects that of another
Competitive advantage may be obtained by optimizing and
coordinating linked activities
The value chain also is useful in outsourcing decisions
Understanding the linkages between activities can lead to
more optimal make-or-buy decisions that can result in either a
cost advantage or a differentiation advantage
882019 Session 2 - MABD
httpslidepdfcomreaderfullsession-2-mabd 1327
120310 13
The Value Chain
The Value System
882019 Session 2 - MABD
httpslidepdfcomreaderfullsession-2-mabd 1427
120310 14
The Value Chain
The Value System
The firms value chain links to the value
chains of upstream suppliers and
downstream buyers The result is a
larger stream of activities known as
the value system The development of a
competitive advantage depends not only
on the firm-specific value chain but alsoon the value system of which the firm is
a part
882019 Session 2 - MABD
httpslidepdfcomreaderfullsession-2-mabd 1527
120310 15
The MarketingPlan
882019 Session 2 - MABD
httpslidepdfcomreaderfullsession-2-mabd 1627
120310 16
The MarketingPlan
The Marketing Plan is a highly detailed heavilyresearched and hopefully well written report thatmany inside and possibly outside the organization willevaluate It is an essential document for both largecorporate marketing departments and for startup
companies Essentially the Marketing Plan forces the marketing personnel to look internally in
order to fully understand the results of past marketingdecisions
forces the marketing personnel to look externally in
order to fully understand the market in which theyoperate sets future goals and provides direction for future
marketing efforts that everyone within theorganization should understand and support
is a key component in obtaining funding to pursue
new initiatives
882019 Session 2 - MABD
httpslidepdfcomreaderfullsession-2-mabd 1727
120310 17
The MarketingPlan
The Marketing Plan is generally undertaken for one of the following reasons
Needed as part of the yearly planning process within the marketing functional area
Needed for a specialized strategy to introduce something new such as new product planning entering new markets or trying a new strategy to fix an existing problem
Is a component within an overall business plan such as a new business proposal tothe financial community
There are many ways to develop and format a marketing plan The approach taken here isto present a 6-Part plan that includes Purpose and Mission Situational Analysis
Marketing Strategy and Objectives
Tactical Programs
Budgets Performance Analysis and Implementation
Additional Consideration
The marketing Plan Outline
882019 Session 2 - MABD
httpslidepdfcomreaderfullsession-2-mabd 1827
120310 18
SWOT Analysis
A scan of the internal and external environmentis an important part of the strategic planningprocess Environmental factors internal to thefirm usually can be classified as strengths (S) or weaknesses (W) and those external to the firm
can be classified as opportunities (O) or threats(T) Such an analysis of the strategicenvironment is referred to as a SWOT analysis
The SWOT analysis provides information that is
helpful in matching the firms resources andcapabilities to the competitive environment inwhich it operates As such it is instrumental instrategy formulation and selection The followingdiagram shows how a SWOT analysis fits into anenvironmental scan
882019 Session 2 - MABD
httpslidepdfcomreaderfullsession-2-mabd 1927
120310 19
SWOT Analysis
Environmental Scan
Internal
Analysis
External
Analysis
Strengths
Weaknesses
Opportunities
Threats
SWOT Matrix
882019 Session 2 - MABD
httpslidepdfcomreaderfullsession-2-mabd 2027
120310 20
SWOT Analysis
Strengths
A firms strengths are its resources and
capabilities that can be used as a basis for
developing a competitive advantage Examples
of such strengths include
patents
strong brand names
good reputation among customers cost advantages from proprietary know-how
exclusive access to high grade natural resources
favorable access to distribution networks
882019 Session 2 - MABD
httpslidepdfcomreaderfullsession-2-mabd 2127
120310 21
SWOT Analysis
Weaknesses
The absence of certain strengths may be viewed as a weakness For example each of the following may be considered weaknesses
lack of patent protection a weak brand name poor reputation among customers high cost structure lack of access to the best natural resources lack of access to key distribution channels
In some cases a weakness may be the flip side of a strength Takethe case in which a firm has a large amount of manufacturingcapacity While this capacity may be considered a strength thatcompetitors do not share it also may be a considered a weakness if the large investment in manufacturing capacity prevents the firm fromreacting quickly to changes in the strategic environment
882019 Session 2 - MABD
httpslidepdfcomreaderfullsession-2-mabd 2227
120310 22
SWOT Analysis
Opportunities
The external environmental analysis may
reveal certain new opportunities for profitand growth Some examples of suchopportunities include
an unfulfilled customer need arrival of new technologies loosening of regulations removal of international trade barriers
882019 Session 2 - MABD
httpslidepdfcomreaderfullsession-2-mabd 2327
120310 23
SWOT Analysis
Threats
Changes in the external environmental
also may present threats to the firm Someexamples of such threats include shifts in consumer tastes away from the
firms products emergence of substitute products new regulations increased trade barriers
882019 Session 2 - MABD
httpslidepdfcomreaderfullsession-2-mabd 2427
120310 24
SWOT Analysis
The SWOT Matrix
A firm should not necessarily pursue the more lucrativeopportunities Rather it may have a better chance atdeveloping a competitive advantage by identifying a fit
between the firms strengths and upcomingopportunities In some cases the firm can overcome aweakness in order to prepare itself to pursue acompelling opportunity
To develop strategies that take into account the SWOTprofile a matrix of these factors can be constructedThe SWOT matrix (also known as a TOWS Matrix)
882019 Session 2 - MABD
httpslidepdfcomreaderfullsession-2-mabd 2527
120310 25
SWOT Analysis
Strengths Weaknesses
OpportunitiesS-O strategies W-O strategies
ThreatsS-T strategies W-T strategies
The SWOT Matrix
882019 Session 2 - MABD
httpslidepdfcomreaderfullsession-2-mabd 2627
120310 26
SWOT Analysis
S-O strategies pursue opportunities that are agood fit to the companys strengths
W-O strategies overcome weaknesses topursue opportunities
S-T strategies identify ways that the firm canuse its strengths to reduce its vulnerability toexternal threats
W-T strategies establish a defensive plan toprevent the firms weaknesses from making it
highly susceptible to external threats
882019 Session 2 - MABD
httpslidepdfcomreaderfullsession-2-mabd 2727
120310 27
882019 Session 2 - MABD
httpslidepdfcomreaderfullsession-2-mabd 1227
120310 12
The Value Chain
Value Chain Analysis
In order to better understand the activities leading to a
competitive advantage one can begin with the generic value
chain and then identify the relevant firm-specific activities
Process flows can be mapped and these flows used toisolate the individual value-creating activities
Once the discrete activities are defined linkages between
activities should be identified A linkage exists if the
performance or cost of one activity affects that of another
Competitive advantage may be obtained by optimizing and
coordinating linked activities
The value chain also is useful in outsourcing decisions
Understanding the linkages between activities can lead to
more optimal make-or-buy decisions that can result in either a
cost advantage or a differentiation advantage
882019 Session 2 - MABD
httpslidepdfcomreaderfullsession-2-mabd 1327
120310 13
The Value Chain
The Value System
882019 Session 2 - MABD
httpslidepdfcomreaderfullsession-2-mabd 1427
120310 14
The Value Chain
The Value System
The firms value chain links to the value
chains of upstream suppliers and
downstream buyers The result is a
larger stream of activities known as
the value system The development of a
competitive advantage depends not only
on the firm-specific value chain but alsoon the value system of which the firm is
a part
882019 Session 2 - MABD
httpslidepdfcomreaderfullsession-2-mabd 1527
120310 15
The MarketingPlan
882019 Session 2 - MABD
httpslidepdfcomreaderfullsession-2-mabd 1627
120310 16
The MarketingPlan
The Marketing Plan is a highly detailed heavilyresearched and hopefully well written report thatmany inside and possibly outside the organization willevaluate It is an essential document for both largecorporate marketing departments and for startup
companies Essentially the Marketing Plan forces the marketing personnel to look internally in
order to fully understand the results of past marketingdecisions
forces the marketing personnel to look externally in
order to fully understand the market in which theyoperate sets future goals and provides direction for future
marketing efforts that everyone within theorganization should understand and support
is a key component in obtaining funding to pursue
new initiatives
882019 Session 2 - MABD
httpslidepdfcomreaderfullsession-2-mabd 1727
120310 17
The MarketingPlan
The Marketing Plan is generally undertaken for one of the following reasons
Needed as part of the yearly planning process within the marketing functional area
Needed for a specialized strategy to introduce something new such as new product planning entering new markets or trying a new strategy to fix an existing problem
Is a component within an overall business plan such as a new business proposal tothe financial community
There are many ways to develop and format a marketing plan The approach taken here isto present a 6-Part plan that includes Purpose and Mission Situational Analysis
Marketing Strategy and Objectives
Tactical Programs
Budgets Performance Analysis and Implementation
Additional Consideration
The marketing Plan Outline
882019 Session 2 - MABD
httpslidepdfcomreaderfullsession-2-mabd 1827
120310 18
SWOT Analysis
A scan of the internal and external environmentis an important part of the strategic planningprocess Environmental factors internal to thefirm usually can be classified as strengths (S) or weaknesses (W) and those external to the firm
can be classified as opportunities (O) or threats(T) Such an analysis of the strategicenvironment is referred to as a SWOT analysis
The SWOT analysis provides information that is
helpful in matching the firms resources andcapabilities to the competitive environment inwhich it operates As such it is instrumental instrategy formulation and selection The followingdiagram shows how a SWOT analysis fits into anenvironmental scan
882019 Session 2 - MABD
httpslidepdfcomreaderfullsession-2-mabd 1927
120310 19
SWOT Analysis
Environmental Scan
Internal
Analysis
External
Analysis
Strengths
Weaknesses
Opportunities
Threats
SWOT Matrix
882019 Session 2 - MABD
httpslidepdfcomreaderfullsession-2-mabd 2027
120310 20
SWOT Analysis
Strengths
A firms strengths are its resources and
capabilities that can be used as a basis for
developing a competitive advantage Examples
of such strengths include
patents
strong brand names
good reputation among customers cost advantages from proprietary know-how
exclusive access to high grade natural resources
favorable access to distribution networks
882019 Session 2 - MABD
httpslidepdfcomreaderfullsession-2-mabd 2127
120310 21
SWOT Analysis
Weaknesses
The absence of certain strengths may be viewed as a weakness For example each of the following may be considered weaknesses
lack of patent protection a weak brand name poor reputation among customers high cost structure lack of access to the best natural resources lack of access to key distribution channels
In some cases a weakness may be the flip side of a strength Takethe case in which a firm has a large amount of manufacturingcapacity While this capacity may be considered a strength thatcompetitors do not share it also may be a considered a weakness if the large investment in manufacturing capacity prevents the firm fromreacting quickly to changes in the strategic environment
882019 Session 2 - MABD
httpslidepdfcomreaderfullsession-2-mabd 2227
120310 22
SWOT Analysis
Opportunities
The external environmental analysis may
reveal certain new opportunities for profitand growth Some examples of suchopportunities include
an unfulfilled customer need arrival of new technologies loosening of regulations removal of international trade barriers
882019 Session 2 - MABD
httpslidepdfcomreaderfullsession-2-mabd 2327
120310 23
SWOT Analysis
Threats
Changes in the external environmental
also may present threats to the firm Someexamples of such threats include shifts in consumer tastes away from the
firms products emergence of substitute products new regulations increased trade barriers
882019 Session 2 - MABD
httpslidepdfcomreaderfullsession-2-mabd 2427
120310 24
SWOT Analysis
The SWOT Matrix
A firm should not necessarily pursue the more lucrativeopportunities Rather it may have a better chance atdeveloping a competitive advantage by identifying a fit
between the firms strengths and upcomingopportunities In some cases the firm can overcome aweakness in order to prepare itself to pursue acompelling opportunity
To develop strategies that take into account the SWOTprofile a matrix of these factors can be constructedThe SWOT matrix (also known as a TOWS Matrix)
882019 Session 2 - MABD
httpslidepdfcomreaderfullsession-2-mabd 2527
120310 25
SWOT Analysis
Strengths Weaknesses
OpportunitiesS-O strategies W-O strategies
ThreatsS-T strategies W-T strategies
The SWOT Matrix
882019 Session 2 - MABD
httpslidepdfcomreaderfullsession-2-mabd 2627
120310 26
SWOT Analysis
S-O strategies pursue opportunities that are agood fit to the companys strengths
W-O strategies overcome weaknesses topursue opportunities
S-T strategies identify ways that the firm canuse its strengths to reduce its vulnerability toexternal threats
W-T strategies establish a defensive plan toprevent the firms weaknesses from making it
highly susceptible to external threats
882019 Session 2 - MABD
httpslidepdfcomreaderfullsession-2-mabd 2727
120310 27
882019 Session 2 - MABD
httpslidepdfcomreaderfullsession-2-mabd 1327
120310 13
The Value Chain
The Value System
882019 Session 2 - MABD
httpslidepdfcomreaderfullsession-2-mabd 1427
120310 14
The Value Chain
The Value System
The firms value chain links to the value
chains of upstream suppliers and
downstream buyers The result is a
larger stream of activities known as
the value system The development of a
competitive advantage depends not only
on the firm-specific value chain but alsoon the value system of which the firm is
a part
882019 Session 2 - MABD
httpslidepdfcomreaderfullsession-2-mabd 1527
120310 15
The MarketingPlan
882019 Session 2 - MABD
httpslidepdfcomreaderfullsession-2-mabd 1627
120310 16
The MarketingPlan
The Marketing Plan is a highly detailed heavilyresearched and hopefully well written report thatmany inside and possibly outside the organization willevaluate It is an essential document for both largecorporate marketing departments and for startup
companies Essentially the Marketing Plan forces the marketing personnel to look internally in
order to fully understand the results of past marketingdecisions
forces the marketing personnel to look externally in
order to fully understand the market in which theyoperate sets future goals and provides direction for future
marketing efforts that everyone within theorganization should understand and support
is a key component in obtaining funding to pursue
new initiatives
882019 Session 2 - MABD
httpslidepdfcomreaderfullsession-2-mabd 1727
120310 17
The MarketingPlan
The Marketing Plan is generally undertaken for one of the following reasons
Needed as part of the yearly planning process within the marketing functional area
Needed for a specialized strategy to introduce something new such as new product planning entering new markets or trying a new strategy to fix an existing problem
Is a component within an overall business plan such as a new business proposal tothe financial community
There are many ways to develop and format a marketing plan The approach taken here isto present a 6-Part plan that includes Purpose and Mission Situational Analysis
Marketing Strategy and Objectives
Tactical Programs
Budgets Performance Analysis and Implementation
Additional Consideration
The marketing Plan Outline
882019 Session 2 - MABD
httpslidepdfcomreaderfullsession-2-mabd 1827
120310 18
SWOT Analysis
A scan of the internal and external environmentis an important part of the strategic planningprocess Environmental factors internal to thefirm usually can be classified as strengths (S) or weaknesses (W) and those external to the firm
can be classified as opportunities (O) or threats(T) Such an analysis of the strategicenvironment is referred to as a SWOT analysis
The SWOT analysis provides information that is
helpful in matching the firms resources andcapabilities to the competitive environment inwhich it operates As such it is instrumental instrategy formulation and selection The followingdiagram shows how a SWOT analysis fits into anenvironmental scan
882019 Session 2 - MABD
httpslidepdfcomreaderfullsession-2-mabd 1927
120310 19
SWOT Analysis
Environmental Scan
Internal
Analysis
External
Analysis
Strengths
Weaknesses
Opportunities
Threats
SWOT Matrix
882019 Session 2 - MABD
httpslidepdfcomreaderfullsession-2-mabd 2027
120310 20
SWOT Analysis
Strengths
A firms strengths are its resources and
capabilities that can be used as a basis for
developing a competitive advantage Examples
of such strengths include
patents
strong brand names
good reputation among customers cost advantages from proprietary know-how
exclusive access to high grade natural resources
favorable access to distribution networks
882019 Session 2 - MABD
httpslidepdfcomreaderfullsession-2-mabd 2127
120310 21
SWOT Analysis
Weaknesses
The absence of certain strengths may be viewed as a weakness For example each of the following may be considered weaknesses
lack of patent protection a weak brand name poor reputation among customers high cost structure lack of access to the best natural resources lack of access to key distribution channels
In some cases a weakness may be the flip side of a strength Takethe case in which a firm has a large amount of manufacturingcapacity While this capacity may be considered a strength thatcompetitors do not share it also may be a considered a weakness if the large investment in manufacturing capacity prevents the firm fromreacting quickly to changes in the strategic environment
882019 Session 2 - MABD
httpslidepdfcomreaderfullsession-2-mabd 2227
120310 22
SWOT Analysis
Opportunities
The external environmental analysis may
reveal certain new opportunities for profitand growth Some examples of suchopportunities include
an unfulfilled customer need arrival of new technologies loosening of regulations removal of international trade barriers
882019 Session 2 - MABD
httpslidepdfcomreaderfullsession-2-mabd 2327
120310 23
SWOT Analysis
Threats
Changes in the external environmental
also may present threats to the firm Someexamples of such threats include shifts in consumer tastes away from the
firms products emergence of substitute products new regulations increased trade barriers
882019 Session 2 - MABD
httpslidepdfcomreaderfullsession-2-mabd 2427
120310 24
SWOT Analysis
The SWOT Matrix
A firm should not necessarily pursue the more lucrativeopportunities Rather it may have a better chance atdeveloping a competitive advantage by identifying a fit
between the firms strengths and upcomingopportunities In some cases the firm can overcome aweakness in order to prepare itself to pursue acompelling opportunity
To develop strategies that take into account the SWOTprofile a matrix of these factors can be constructedThe SWOT matrix (also known as a TOWS Matrix)
882019 Session 2 - MABD
httpslidepdfcomreaderfullsession-2-mabd 2527
120310 25
SWOT Analysis
Strengths Weaknesses
OpportunitiesS-O strategies W-O strategies
ThreatsS-T strategies W-T strategies
The SWOT Matrix
882019 Session 2 - MABD
httpslidepdfcomreaderfullsession-2-mabd 2627
120310 26
SWOT Analysis
S-O strategies pursue opportunities that are agood fit to the companys strengths
W-O strategies overcome weaknesses topursue opportunities
S-T strategies identify ways that the firm canuse its strengths to reduce its vulnerability toexternal threats
W-T strategies establish a defensive plan toprevent the firms weaknesses from making it
highly susceptible to external threats
882019 Session 2 - MABD
httpslidepdfcomreaderfullsession-2-mabd 2727
120310 27
882019 Session 2 - MABD
httpslidepdfcomreaderfullsession-2-mabd 1427
120310 14
The Value Chain
The Value System
The firms value chain links to the value
chains of upstream suppliers and
downstream buyers The result is a
larger stream of activities known as
the value system The development of a
competitive advantage depends not only
on the firm-specific value chain but alsoon the value system of which the firm is
a part
882019 Session 2 - MABD
httpslidepdfcomreaderfullsession-2-mabd 1527
120310 15
The MarketingPlan
882019 Session 2 - MABD
httpslidepdfcomreaderfullsession-2-mabd 1627
120310 16
The MarketingPlan
The Marketing Plan is a highly detailed heavilyresearched and hopefully well written report thatmany inside and possibly outside the organization willevaluate It is an essential document for both largecorporate marketing departments and for startup
companies Essentially the Marketing Plan forces the marketing personnel to look internally in
order to fully understand the results of past marketingdecisions
forces the marketing personnel to look externally in
order to fully understand the market in which theyoperate sets future goals and provides direction for future
marketing efforts that everyone within theorganization should understand and support
is a key component in obtaining funding to pursue
new initiatives
882019 Session 2 - MABD
httpslidepdfcomreaderfullsession-2-mabd 1727
120310 17
The MarketingPlan
The Marketing Plan is generally undertaken for one of the following reasons
Needed as part of the yearly planning process within the marketing functional area
Needed for a specialized strategy to introduce something new such as new product planning entering new markets or trying a new strategy to fix an existing problem
Is a component within an overall business plan such as a new business proposal tothe financial community
There are many ways to develop and format a marketing plan The approach taken here isto present a 6-Part plan that includes Purpose and Mission Situational Analysis
Marketing Strategy and Objectives
Tactical Programs
Budgets Performance Analysis and Implementation
Additional Consideration
The marketing Plan Outline
882019 Session 2 - MABD
httpslidepdfcomreaderfullsession-2-mabd 1827
120310 18
SWOT Analysis
A scan of the internal and external environmentis an important part of the strategic planningprocess Environmental factors internal to thefirm usually can be classified as strengths (S) or weaknesses (W) and those external to the firm
can be classified as opportunities (O) or threats(T) Such an analysis of the strategicenvironment is referred to as a SWOT analysis
The SWOT analysis provides information that is
helpful in matching the firms resources andcapabilities to the competitive environment inwhich it operates As such it is instrumental instrategy formulation and selection The followingdiagram shows how a SWOT analysis fits into anenvironmental scan
882019 Session 2 - MABD
httpslidepdfcomreaderfullsession-2-mabd 1927
120310 19
SWOT Analysis
Environmental Scan
Internal
Analysis
External
Analysis
Strengths
Weaknesses
Opportunities
Threats
SWOT Matrix
882019 Session 2 - MABD
httpslidepdfcomreaderfullsession-2-mabd 2027
120310 20
SWOT Analysis
Strengths
A firms strengths are its resources and
capabilities that can be used as a basis for
developing a competitive advantage Examples
of such strengths include
patents
strong brand names
good reputation among customers cost advantages from proprietary know-how
exclusive access to high grade natural resources
favorable access to distribution networks
882019 Session 2 - MABD
httpslidepdfcomreaderfullsession-2-mabd 2127
120310 21
SWOT Analysis
Weaknesses
The absence of certain strengths may be viewed as a weakness For example each of the following may be considered weaknesses
lack of patent protection a weak brand name poor reputation among customers high cost structure lack of access to the best natural resources lack of access to key distribution channels
In some cases a weakness may be the flip side of a strength Takethe case in which a firm has a large amount of manufacturingcapacity While this capacity may be considered a strength thatcompetitors do not share it also may be a considered a weakness if the large investment in manufacturing capacity prevents the firm fromreacting quickly to changes in the strategic environment
882019 Session 2 - MABD
httpslidepdfcomreaderfullsession-2-mabd 2227
120310 22
SWOT Analysis
Opportunities
The external environmental analysis may
reveal certain new opportunities for profitand growth Some examples of suchopportunities include
an unfulfilled customer need arrival of new technologies loosening of regulations removal of international trade barriers
882019 Session 2 - MABD
httpslidepdfcomreaderfullsession-2-mabd 2327
120310 23
SWOT Analysis
Threats
Changes in the external environmental
also may present threats to the firm Someexamples of such threats include shifts in consumer tastes away from the
firms products emergence of substitute products new regulations increased trade barriers
882019 Session 2 - MABD
httpslidepdfcomreaderfullsession-2-mabd 2427
120310 24
SWOT Analysis
The SWOT Matrix
A firm should not necessarily pursue the more lucrativeopportunities Rather it may have a better chance atdeveloping a competitive advantage by identifying a fit
between the firms strengths and upcomingopportunities In some cases the firm can overcome aweakness in order to prepare itself to pursue acompelling opportunity
To develop strategies that take into account the SWOTprofile a matrix of these factors can be constructedThe SWOT matrix (also known as a TOWS Matrix)
882019 Session 2 - MABD
httpslidepdfcomreaderfullsession-2-mabd 2527
120310 25
SWOT Analysis
Strengths Weaknesses
OpportunitiesS-O strategies W-O strategies
ThreatsS-T strategies W-T strategies
The SWOT Matrix
882019 Session 2 - MABD
httpslidepdfcomreaderfullsession-2-mabd 2627
120310 26
SWOT Analysis
S-O strategies pursue opportunities that are agood fit to the companys strengths
W-O strategies overcome weaknesses topursue opportunities
S-T strategies identify ways that the firm canuse its strengths to reduce its vulnerability toexternal threats
W-T strategies establish a defensive plan toprevent the firms weaknesses from making it
highly susceptible to external threats
882019 Session 2 - MABD
httpslidepdfcomreaderfullsession-2-mabd 2727
120310 27
882019 Session 2 - MABD
httpslidepdfcomreaderfullsession-2-mabd 1527
120310 15
The MarketingPlan
882019 Session 2 - MABD
httpslidepdfcomreaderfullsession-2-mabd 1627
120310 16
The MarketingPlan
The Marketing Plan is a highly detailed heavilyresearched and hopefully well written report thatmany inside and possibly outside the organization willevaluate It is an essential document for both largecorporate marketing departments and for startup
companies Essentially the Marketing Plan forces the marketing personnel to look internally in
order to fully understand the results of past marketingdecisions
forces the marketing personnel to look externally in
order to fully understand the market in which theyoperate sets future goals and provides direction for future
marketing efforts that everyone within theorganization should understand and support
is a key component in obtaining funding to pursue
new initiatives
882019 Session 2 - MABD
httpslidepdfcomreaderfullsession-2-mabd 1727
120310 17
The MarketingPlan
The Marketing Plan is generally undertaken for one of the following reasons
Needed as part of the yearly planning process within the marketing functional area
Needed for a specialized strategy to introduce something new such as new product planning entering new markets or trying a new strategy to fix an existing problem
Is a component within an overall business plan such as a new business proposal tothe financial community
There are many ways to develop and format a marketing plan The approach taken here isto present a 6-Part plan that includes Purpose and Mission Situational Analysis
Marketing Strategy and Objectives
Tactical Programs
Budgets Performance Analysis and Implementation
Additional Consideration
The marketing Plan Outline
882019 Session 2 - MABD
httpslidepdfcomreaderfullsession-2-mabd 1827
120310 18
SWOT Analysis
A scan of the internal and external environmentis an important part of the strategic planningprocess Environmental factors internal to thefirm usually can be classified as strengths (S) or weaknesses (W) and those external to the firm
can be classified as opportunities (O) or threats(T) Such an analysis of the strategicenvironment is referred to as a SWOT analysis
The SWOT analysis provides information that is
helpful in matching the firms resources andcapabilities to the competitive environment inwhich it operates As such it is instrumental instrategy formulation and selection The followingdiagram shows how a SWOT analysis fits into anenvironmental scan
882019 Session 2 - MABD
httpslidepdfcomreaderfullsession-2-mabd 1927
120310 19
SWOT Analysis
Environmental Scan
Internal
Analysis
External
Analysis
Strengths
Weaknesses
Opportunities
Threats
SWOT Matrix
882019 Session 2 - MABD
httpslidepdfcomreaderfullsession-2-mabd 2027
120310 20
SWOT Analysis
Strengths
A firms strengths are its resources and
capabilities that can be used as a basis for
developing a competitive advantage Examples
of such strengths include
patents
strong brand names
good reputation among customers cost advantages from proprietary know-how
exclusive access to high grade natural resources
favorable access to distribution networks
882019 Session 2 - MABD
httpslidepdfcomreaderfullsession-2-mabd 2127
120310 21
SWOT Analysis
Weaknesses
The absence of certain strengths may be viewed as a weakness For example each of the following may be considered weaknesses
lack of patent protection a weak brand name poor reputation among customers high cost structure lack of access to the best natural resources lack of access to key distribution channels
In some cases a weakness may be the flip side of a strength Takethe case in which a firm has a large amount of manufacturingcapacity While this capacity may be considered a strength thatcompetitors do not share it also may be a considered a weakness if the large investment in manufacturing capacity prevents the firm fromreacting quickly to changes in the strategic environment
882019 Session 2 - MABD
httpslidepdfcomreaderfullsession-2-mabd 2227
120310 22
SWOT Analysis
Opportunities
The external environmental analysis may
reveal certain new opportunities for profitand growth Some examples of suchopportunities include
an unfulfilled customer need arrival of new technologies loosening of regulations removal of international trade barriers
882019 Session 2 - MABD
httpslidepdfcomreaderfullsession-2-mabd 2327
120310 23
SWOT Analysis
Threats
Changes in the external environmental
also may present threats to the firm Someexamples of such threats include shifts in consumer tastes away from the
firms products emergence of substitute products new regulations increased trade barriers
882019 Session 2 - MABD
httpslidepdfcomreaderfullsession-2-mabd 2427
120310 24
SWOT Analysis
The SWOT Matrix
A firm should not necessarily pursue the more lucrativeopportunities Rather it may have a better chance atdeveloping a competitive advantage by identifying a fit
between the firms strengths and upcomingopportunities In some cases the firm can overcome aweakness in order to prepare itself to pursue acompelling opportunity
To develop strategies that take into account the SWOTprofile a matrix of these factors can be constructedThe SWOT matrix (also known as a TOWS Matrix)
882019 Session 2 - MABD
httpslidepdfcomreaderfullsession-2-mabd 2527
120310 25
SWOT Analysis
Strengths Weaknesses
OpportunitiesS-O strategies W-O strategies
ThreatsS-T strategies W-T strategies
The SWOT Matrix
882019 Session 2 - MABD
httpslidepdfcomreaderfullsession-2-mabd 2627
120310 26
SWOT Analysis
S-O strategies pursue opportunities that are agood fit to the companys strengths
W-O strategies overcome weaknesses topursue opportunities
S-T strategies identify ways that the firm canuse its strengths to reduce its vulnerability toexternal threats
W-T strategies establish a defensive plan toprevent the firms weaknesses from making it
highly susceptible to external threats
882019 Session 2 - MABD
httpslidepdfcomreaderfullsession-2-mabd 2727
120310 27
882019 Session 2 - MABD
httpslidepdfcomreaderfullsession-2-mabd 1627
120310 16
The MarketingPlan
The Marketing Plan is a highly detailed heavilyresearched and hopefully well written report thatmany inside and possibly outside the organization willevaluate It is an essential document for both largecorporate marketing departments and for startup
companies Essentially the Marketing Plan forces the marketing personnel to look internally in
order to fully understand the results of past marketingdecisions
forces the marketing personnel to look externally in
order to fully understand the market in which theyoperate sets future goals and provides direction for future
marketing efforts that everyone within theorganization should understand and support
is a key component in obtaining funding to pursue
new initiatives
882019 Session 2 - MABD
httpslidepdfcomreaderfullsession-2-mabd 1727
120310 17
The MarketingPlan
The Marketing Plan is generally undertaken for one of the following reasons
Needed as part of the yearly planning process within the marketing functional area
Needed for a specialized strategy to introduce something new such as new product planning entering new markets or trying a new strategy to fix an existing problem
Is a component within an overall business plan such as a new business proposal tothe financial community
There are many ways to develop and format a marketing plan The approach taken here isto present a 6-Part plan that includes Purpose and Mission Situational Analysis
Marketing Strategy and Objectives
Tactical Programs
Budgets Performance Analysis and Implementation
Additional Consideration
The marketing Plan Outline
882019 Session 2 - MABD
httpslidepdfcomreaderfullsession-2-mabd 1827
120310 18
SWOT Analysis
A scan of the internal and external environmentis an important part of the strategic planningprocess Environmental factors internal to thefirm usually can be classified as strengths (S) or weaknesses (W) and those external to the firm
can be classified as opportunities (O) or threats(T) Such an analysis of the strategicenvironment is referred to as a SWOT analysis
The SWOT analysis provides information that is
helpful in matching the firms resources andcapabilities to the competitive environment inwhich it operates As such it is instrumental instrategy formulation and selection The followingdiagram shows how a SWOT analysis fits into anenvironmental scan
882019 Session 2 - MABD
httpslidepdfcomreaderfullsession-2-mabd 1927
120310 19
SWOT Analysis
Environmental Scan
Internal
Analysis
External
Analysis
Strengths
Weaknesses
Opportunities
Threats
SWOT Matrix
882019 Session 2 - MABD
httpslidepdfcomreaderfullsession-2-mabd 2027
120310 20
SWOT Analysis
Strengths
A firms strengths are its resources and
capabilities that can be used as a basis for
developing a competitive advantage Examples
of such strengths include
patents
strong brand names
good reputation among customers cost advantages from proprietary know-how
exclusive access to high grade natural resources
favorable access to distribution networks
882019 Session 2 - MABD
httpslidepdfcomreaderfullsession-2-mabd 2127
120310 21
SWOT Analysis
Weaknesses
The absence of certain strengths may be viewed as a weakness For example each of the following may be considered weaknesses
lack of patent protection a weak brand name poor reputation among customers high cost structure lack of access to the best natural resources lack of access to key distribution channels
In some cases a weakness may be the flip side of a strength Takethe case in which a firm has a large amount of manufacturingcapacity While this capacity may be considered a strength thatcompetitors do not share it also may be a considered a weakness if the large investment in manufacturing capacity prevents the firm fromreacting quickly to changes in the strategic environment
882019 Session 2 - MABD
httpslidepdfcomreaderfullsession-2-mabd 2227
120310 22
SWOT Analysis
Opportunities
The external environmental analysis may
reveal certain new opportunities for profitand growth Some examples of suchopportunities include
an unfulfilled customer need arrival of new technologies loosening of regulations removal of international trade barriers
882019 Session 2 - MABD
httpslidepdfcomreaderfullsession-2-mabd 2327
120310 23
SWOT Analysis
Threats
Changes in the external environmental
also may present threats to the firm Someexamples of such threats include shifts in consumer tastes away from the
firms products emergence of substitute products new regulations increased trade barriers
882019 Session 2 - MABD
httpslidepdfcomreaderfullsession-2-mabd 2427
120310 24
SWOT Analysis
The SWOT Matrix
A firm should not necessarily pursue the more lucrativeopportunities Rather it may have a better chance atdeveloping a competitive advantage by identifying a fit
between the firms strengths and upcomingopportunities In some cases the firm can overcome aweakness in order to prepare itself to pursue acompelling opportunity
To develop strategies that take into account the SWOTprofile a matrix of these factors can be constructedThe SWOT matrix (also known as a TOWS Matrix)
882019 Session 2 - MABD
httpslidepdfcomreaderfullsession-2-mabd 2527
120310 25
SWOT Analysis
Strengths Weaknesses
OpportunitiesS-O strategies W-O strategies
ThreatsS-T strategies W-T strategies
The SWOT Matrix
882019 Session 2 - MABD
httpslidepdfcomreaderfullsession-2-mabd 2627
120310 26
SWOT Analysis
S-O strategies pursue opportunities that are agood fit to the companys strengths
W-O strategies overcome weaknesses topursue opportunities
S-T strategies identify ways that the firm canuse its strengths to reduce its vulnerability toexternal threats
W-T strategies establish a defensive plan toprevent the firms weaknesses from making it
highly susceptible to external threats
882019 Session 2 - MABD
httpslidepdfcomreaderfullsession-2-mabd 2727
120310 27
882019 Session 2 - MABD
httpslidepdfcomreaderfullsession-2-mabd 1727
120310 17
The MarketingPlan
The Marketing Plan is generally undertaken for one of the following reasons
Needed as part of the yearly planning process within the marketing functional area
Needed for a specialized strategy to introduce something new such as new product planning entering new markets or trying a new strategy to fix an existing problem
Is a component within an overall business plan such as a new business proposal tothe financial community
There are many ways to develop and format a marketing plan The approach taken here isto present a 6-Part plan that includes Purpose and Mission Situational Analysis
Marketing Strategy and Objectives
Tactical Programs
Budgets Performance Analysis and Implementation
Additional Consideration
The marketing Plan Outline
882019 Session 2 - MABD
httpslidepdfcomreaderfullsession-2-mabd 1827
120310 18
SWOT Analysis
A scan of the internal and external environmentis an important part of the strategic planningprocess Environmental factors internal to thefirm usually can be classified as strengths (S) or weaknesses (W) and those external to the firm
can be classified as opportunities (O) or threats(T) Such an analysis of the strategicenvironment is referred to as a SWOT analysis
The SWOT analysis provides information that is
helpful in matching the firms resources andcapabilities to the competitive environment inwhich it operates As such it is instrumental instrategy formulation and selection The followingdiagram shows how a SWOT analysis fits into anenvironmental scan
882019 Session 2 - MABD
httpslidepdfcomreaderfullsession-2-mabd 1927
120310 19
SWOT Analysis
Environmental Scan
Internal
Analysis
External
Analysis
Strengths
Weaknesses
Opportunities
Threats
SWOT Matrix
882019 Session 2 - MABD
httpslidepdfcomreaderfullsession-2-mabd 2027
120310 20
SWOT Analysis
Strengths
A firms strengths are its resources and
capabilities that can be used as a basis for
developing a competitive advantage Examples
of such strengths include
patents
strong brand names
good reputation among customers cost advantages from proprietary know-how
exclusive access to high grade natural resources
favorable access to distribution networks
882019 Session 2 - MABD
httpslidepdfcomreaderfullsession-2-mabd 2127
120310 21
SWOT Analysis
Weaknesses
The absence of certain strengths may be viewed as a weakness For example each of the following may be considered weaknesses
lack of patent protection a weak brand name poor reputation among customers high cost structure lack of access to the best natural resources lack of access to key distribution channels
In some cases a weakness may be the flip side of a strength Takethe case in which a firm has a large amount of manufacturingcapacity While this capacity may be considered a strength thatcompetitors do not share it also may be a considered a weakness if the large investment in manufacturing capacity prevents the firm fromreacting quickly to changes in the strategic environment
882019 Session 2 - MABD
httpslidepdfcomreaderfullsession-2-mabd 2227
120310 22
SWOT Analysis
Opportunities
The external environmental analysis may
reveal certain new opportunities for profitand growth Some examples of suchopportunities include
an unfulfilled customer need arrival of new technologies loosening of regulations removal of international trade barriers
882019 Session 2 - MABD
httpslidepdfcomreaderfullsession-2-mabd 2327
120310 23
SWOT Analysis
Threats
Changes in the external environmental
also may present threats to the firm Someexamples of such threats include shifts in consumer tastes away from the
firms products emergence of substitute products new regulations increased trade barriers
882019 Session 2 - MABD
httpslidepdfcomreaderfullsession-2-mabd 2427
120310 24
SWOT Analysis
The SWOT Matrix
A firm should not necessarily pursue the more lucrativeopportunities Rather it may have a better chance atdeveloping a competitive advantage by identifying a fit
between the firms strengths and upcomingopportunities In some cases the firm can overcome aweakness in order to prepare itself to pursue acompelling opportunity
To develop strategies that take into account the SWOTprofile a matrix of these factors can be constructedThe SWOT matrix (also known as a TOWS Matrix)
882019 Session 2 - MABD
httpslidepdfcomreaderfullsession-2-mabd 2527
120310 25
SWOT Analysis
Strengths Weaknesses
OpportunitiesS-O strategies W-O strategies
ThreatsS-T strategies W-T strategies
The SWOT Matrix
882019 Session 2 - MABD
httpslidepdfcomreaderfullsession-2-mabd 2627
120310 26
SWOT Analysis
S-O strategies pursue opportunities that are agood fit to the companys strengths
W-O strategies overcome weaknesses topursue opportunities
S-T strategies identify ways that the firm canuse its strengths to reduce its vulnerability toexternal threats
W-T strategies establish a defensive plan toprevent the firms weaknesses from making it
highly susceptible to external threats
882019 Session 2 - MABD
httpslidepdfcomreaderfullsession-2-mabd 2727
120310 27
882019 Session 2 - MABD
httpslidepdfcomreaderfullsession-2-mabd 1827
120310 18
SWOT Analysis
A scan of the internal and external environmentis an important part of the strategic planningprocess Environmental factors internal to thefirm usually can be classified as strengths (S) or weaknesses (W) and those external to the firm
can be classified as opportunities (O) or threats(T) Such an analysis of the strategicenvironment is referred to as a SWOT analysis
The SWOT analysis provides information that is
helpful in matching the firms resources andcapabilities to the competitive environment inwhich it operates As such it is instrumental instrategy formulation and selection The followingdiagram shows how a SWOT analysis fits into anenvironmental scan
882019 Session 2 - MABD
httpslidepdfcomreaderfullsession-2-mabd 1927
120310 19
SWOT Analysis
Environmental Scan
Internal
Analysis
External
Analysis
Strengths
Weaknesses
Opportunities
Threats
SWOT Matrix
882019 Session 2 - MABD
httpslidepdfcomreaderfullsession-2-mabd 2027
120310 20
SWOT Analysis
Strengths
A firms strengths are its resources and
capabilities that can be used as a basis for
developing a competitive advantage Examples
of such strengths include
patents
strong brand names
good reputation among customers cost advantages from proprietary know-how
exclusive access to high grade natural resources
favorable access to distribution networks
882019 Session 2 - MABD
httpslidepdfcomreaderfullsession-2-mabd 2127
120310 21
SWOT Analysis
Weaknesses
The absence of certain strengths may be viewed as a weakness For example each of the following may be considered weaknesses
lack of patent protection a weak brand name poor reputation among customers high cost structure lack of access to the best natural resources lack of access to key distribution channels
In some cases a weakness may be the flip side of a strength Takethe case in which a firm has a large amount of manufacturingcapacity While this capacity may be considered a strength thatcompetitors do not share it also may be a considered a weakness if the large investment in manufacturing capacity prevents the firm fromreacting quickly to changes in the strategic environment
882019 Session 2 - MABD
httpslidepdfcomreaderfullsession-2-mabd 2227
120310 22
SWOT Analysis
Opportunities
The external environmental analysis may
reveal certain new opportunities for profitand growth Some examples of suchopportunities include
an unfulfilled customer need arrival of new technologies loosening of regulations removal of international trade barriers
882019 Session 2 - MABD
httpslidepdfcomreaderfullsession-2-mabd 2327
120310 23
SWOT Analysis
Threats
Changes in the external environmental
also may present threats to the firm Someexamples of such threats include shifts in consumer tastes away from the
firms products emergence of substitute products new regulations increased trade barriers
882019 Session 2 - MABD
httpslidepdfcomreaderfullsession-2-mabd 2427
120310 24
SWOT Analysis
The SWOT Matrix
A firm should not necessarily pursue the more lucrativeopportunities Rather it may have a better chance atdeveloping a competitive advantage by identifying a fit
between the firms strengths and upcomingopportunities In some cases the firm can overcome aweakness in order to prepare itself to pursue acompelling opportunity
To develop strategies that take into account the SWOTprofile a matrix of these factors can be constructedThe SWOT matrix (also known as a TOWS Matrix)
882019 Session 2 - MABD
httpslidepdfcomreaderfullsession-2-mabd 2527
120310 25
SWOT Analysis
Strengths Weaknesses
OpportunitiesS-O strategies W-O strategies
ThreatsS-T strategies W-T strategies
The SWOT Matrix
882019 Session 2 - MABD
httpslidepdfcomreaderfullsession-2-mabd 2627
120310 26
SWOT Analysis
S-O strategies pursue opportunities that are agood fit to the companys strengths
W-O strategies overcome weaknesses topursue opportunities
S-T strategies identify ways that the firm canuse its strengths to reduce its vulnerability toexternal threats
W-T strategies establish a defensive plan toprevent the firms weaknesses from making it
highly susceptible to external threats
882019 Session 2 - MABD
httpslidepdfcomreaderfullsession-2-mabd 2727
120310 27
882019 Session 2 - MABD
httpslidepdfcomreaderfullsession-2-mabd 1927
120310 19
SWOT Analysis
Environmental Scan
Internal
Analysis
External
Analysis
Strengths
Weaknesses
Opportunities
Threats
SWOT Matrix
882019 Session 2 - MABD
httpslidepdfcomreaderfullsession-2-mabd 2027
120310 20
SWOT Analysis
Strengths
A firms strengths are its resources and
capabilities that can be used as a basis for
developing a competitive advantage Examples
of such strengths include
patents
strong brand names
good reputation among customers cost advantages from proprietary know-how
exclusive access to high grade natural resources
favorable access to distribution networks
882019 Session 2 - MABD
httpslidepdfcomreaderfullsession-2-mabd 2127
120310 21
SWOT Analysis
Weaknesses
The absence of certain strengths may be viewed as a weakness For example each of the following may be considered weaknesses
lack of patent protection a weak brand name poor reputation among customers high cost structure lack of access to the best natural resources lack of access to key distribution channels
In some cases a weakness may be the flip side of a strength Takethe case in which a firm has a large amount of manufacturingcapacity While this capacity may be considered a strength thatcompetitors do not share it also may be a considered a weakness if the large investment in manufacturing capacity prevents the firm fromreacting quickly to changes in the strategic environment
882019 Session 2 - MABD
httpslidepdfcomreaderfullsession-2-mabd 2227
120310 22
SWOT Analysis
Opportunities
The external environmental analysis may
reveal certain new opportunities for profitand growth Some examples of suchopportunities include
an unfulfilled customer need arrival of new technologies loosening of regulations removal of international trade barriers
882019 Session 2 - MABD
httpslidepdfcomreaderfullsession-2-mabd 2327
120310 23
SWOT Analysis
Threats
Changes in the external environmental
also may present threats to the firm Someexamples of such threats include shifts in consumer tastes away from the
firms products emergence of substitute products new regulations increased trade barriers
882019 Session 2 - MABD
httpslidepdfcomreaderfullsession-2-mabd 2427
120310 24
SWOT Analysis
The SWOT Matrix
A firm should not necessarily pursue the more lucrativeopportunities Rather it may have a better chance atdeveloping a competitive advantage by identifying a fit
between the firms strengths and upcomingopportunities In some cases the firm can overcome aweakness in order to prepare itself to pursue acompelling opportunity
To develop strategies that take into account the SWOTprofile a matrix of these factors can be constructedThe SWOT matrix (also known as a TOWS Matrix)
882019 Session 2 - MABD
httpslidepdfcomreaderfullsession-2-mabd 2527
120310 25
SWOT Analysis
Strengths Weaknesses
OpportunitiesS-O strategies W-O strategies
ThreatsS-T strategies W-T strategies
The SWOT Matrix
882019 Session 2 - MABD
httpslidepdfcomreaderfullsession-2-mabd 2627
120310 26
SWOT Analysis
S-O strategies pursue opportunities that are agood fit to the companys strengths
W-O strategies overcome weaknesses topursue opportunities
S-T strategies identify ways that the firm canuse its strengths to reduce its vulnerability toexternal threats
W-T strategies establish a defensive plan toprevent the firms weaknesses from making it
highly susceptible to external threats
882019 Session 2 - MABD
httpslidepdfcomreaderfullsession-2-mabd 2727
120310 27
882019 Session 2 - MABD
httpslidepdfcomreaderfullsession-2-mabd 2027
120310 20
SWOT Analysis
Strengths
A firms strengths are its resources and
capabilities that can be used as a basis for
developing a competitive advantage Examples
of such strengths include
patents
strong brand names
good reputation among customers cost advantages from proprietary know-how
exclusive access to high grade natural resources
favorable access to distribution networks
882019 Session 2 - MABD
httpslidepdfcomreaderfullsession-2-mabd 2127
120310 21
SWOT Analysis
Weaknesses
The absence of certain strengths may be viewed as a weakness For example each of the following may be considered weaknesses
lack of patent protection a weak brand name poor reputation among customers high cost structure lack of access to the best natural resources lack of access to key distribution channels
In some cases a weakness may be the flip side of a strength Takethe case in which a firm has a large amount of manufacturingcapacity While this capacity may be considered a strength thatcompetitors do not share it also may be a considered a weakness if the large investment in manufacturing capacity prevents the firm fromreacting quickly to changes in the strategic environment
882019 Session 2 - MABD
httpslidepdfcomreaderfullsession-2-mabd 2227
120310 22
SWOT Analysis
Opportunities
The external environmental analysis may
reveal certain new opportunities for profitand growth Some examples of suchopportunities include
an unfulfilled customer need arrival of new technologies loosening of regulations removal of international trade barriers
882019 Session 2 - MABD
httpslidepdfcomreaderfullsession-2-mabd 2327
120310 23
SWOT Analysis
Threats
Changes in the external environmental
also may present threats to the firm Someexamples of such threats include shifts in consumer tastes away from the
firms products emergence of substitute products new regulations increased trade barriers
882019 Session 2 - MABD
httpslidepdfcomreaderfullsession-2-mabd 2427
120310 24
SWOT Analysis
The SWOT Matrix
A firm should not necessarily pursue the more lucrativeopportunities Rather it may have a better chance atdeveloping a competitive advantage by identifying a fit
between the firms strengths and upcomingopportunities In some cases the firm can overcome aweakness in order to prepare itself to pursue acompelling opportunity
To develop strategies that take into account the SWOTprofile a matrix of these factors can be constructedThe SWOT matrix (also known as a TOWS Matrix)
882019 Session 2 - MABD
httpslidepdfcomreaderfullsession-2-mabd 2527
120310 25
SWOT Analysis
Strengths Weaknesses
OpportunitiesS-O strategies W-O strategies
ThreatsS-T strategies W-T strategies
The SWOT Matrix
882019 Session 2 - MABD
httpslidepdfcomreaderfullsession-2-mabd 2627
120310 26
SWOT Analysis
S-O strategies pursue opportunities that are agood fit to the companys strengths
W-O strategies overcome weaknesses topursue opportunities
S-T strategies identify ways that the firm canuse its strengths to reduce its vulnerability toexternal threats
W-T strategies establish a defensive plan toprevent the firms weaknesses from making it
highly susceptible to external threats
882019 Session 2 - MABD
httpslidepdfcomreaderfullsession-2-mabd 2727
120310 27
882019 Session 2 - MABD
httpslidepdfcomreaderfullsession-2-mabd 2127
120310 21
SWOT Analysis
Weaknesses
The absence of certain strengths may be viewed as a weakness For example each of the following may be considered weaknesses
lack of patent protection a weak brand name poor reputation among customers high cost structure lack of access to the best natural resources lack of access to key distribution channels
In some cases a weakness may be the flip side of a strength Takethe case in which a firm has a large amount of manufacturingcapacity While this capacity may be considered a strength thatcompetitors do not share it also may be a considered a weakness if the large investment in manufacturing capacity prevents the firm fromreacting quickly to changes in the strategic environment
882019 Session 2 - MABD
httpslidepdfcomreaderfullsession-2-mabd 2227
120310 22
SWOT Analysis
Opportunities
The external environmental analysis may
reveal certain new opportunities for profitand growth Some examples of suchopportunities include
an unfulfilled customer need arrival of new technologies loosening of regulations removal of international trade barriers
882019 Session 2 - MABD
httpslidepdfcomreaderfullsession-2-mabd 2327
120310 23
SWOT Analysis
Threats
Changes in the external environmental
also may present threats to the firm Someexamples of such threats include shifts in consumer tastes away from the
firms products emergence of substitute products new regulations increased trade barriers
882019 Session 2 - MABD
httpslidepdfcomreaderfullsession-2-mabd 2427
120310 24
SWOT Analysis
The SWOT Matrix
A firm should not necessarily pursue the more lucrativeopportunities Rather it may have a better chance atdeveloping a competitive advantage by identifying a fit
between the firms strengths and upcomingopportunities In some cases the firm can overcome aweakness in order to prepare itself to pursue acompelling opportunity
To develop strategies that take into account the SWOTprofile a matrix of these factors can be constructedThe SWOT matrix (also known as a TOWS Matrix)
882019 Session 2 - MABD
httpslidepdfcomreaderfullsession-2-mabd 2527
120310 25
SWOT Analysis
Strengths Weaknesses
OpportunitiesS-O strategies W-O strategies
ThreatsS-T strategies W-T strategies
The SWOT Matrix
882019 Session 2 - MABD
httpslidepdfcomreaderfullsession-2-mabd 2627
120310 26
SWOT Analysis
S-O strategies pursue opportunities that are agood fit to the companys strengths
W-O strategies overcome weaknesses topursue opportunities
S-T strategies identify ways that the firm canuse its strengths to reduce its vulnerability toexternal threats
W-T strategies establish a defensive plan toprevent the firms weaknesses from making it
highly susceptible to external threats
882019 Session 2 - MABD
httpslidepdfcomreaderfullsession-2-mabd 2727
120310 27
882019 Session 2 - MABD
httpslidepdfcomreaderfullsession-2-mabd 2227
120310 22
SWOT Analysis
Opportunities
The external environmental analysis may
reveal certain new opportunities for profitand growth Some examples of suchopportunities include
an unfulfilled customer need arrival of new technologies loosening of regulations removal of international trade barriers
882019 Session 2 - MABD
httpslidepdfcomreaderfullsession-2-mabd 2327
120310 23
SWOT Analysis
Threats
Changes in the external environmental
also may present threats to the firm Someexamples of such threats include shifts in consumer tastes away from the
firms products emergence of substitute products new regulations increased trade barriers
882019 Session 2 - MABD
httpslidepdfcomreaderfullsession-2-mabd 2427
120310 24
SWOT Analysis
The SWOT Matrix
A firm should not necessarily pursue the more lucrativeopportunities Rather it may have a better chance atdeveloping a competitive advantage by identifying a fit
between the firms strengths and upcomingopportunities In some cases the firm can overcome aweakness in order to prepare itself to pursue acompelling opportunity
To develop strategies that take into account the SWOTprofile a matrix of these factors can be constructedThe SWOT matrix (also known as a TOWS Matrix)
882019 Session 2 - MABD
httpslidepdfcomreaderfullsession-2-mabd 2527
120310 25
SWOT Analysis
Strengths Weaknesses
OpportunitiesS-O strategies W-O strategies
ThreatsS-T strategies W-T strategies
The SWOT Matrix
882019 Session 2 - MABD
httpslidepdfcomreaderfullsession-2-mabd 2627
120310 26
SWOT Analysis
S-O strategies pursue opportunities that are agood fit to the companys strengths
W-O strategies overcome weaknesses topursue opportunities
S-T strategies identify ways that the firm canuse its strengths to reduce its vulnerability toexternal threats
W-T strategies establish a defensive plan toprevent the firms weaknesses from making it
highly susceptible to external threats
882019 Session 2 - MABD
httpslidepdfcomreaderfullsession-2-mabd 2727
120310 27
882019 Session 2 - MABD
httpslidepdfcomreaderfullsession-2-mabd 2327
120310 23
SWOT Analysis
Threats
Changes in the external environmental
also may present threats to the firm Someexamples of such threats include shifts in consumer tastes away from the
firms products emergence of substitute products new regulations increased trade barriers
882019 Session 2 - MABD
httpslidepdfcomreaderfullsession-2-mabd 2427
120310 24
SWOT Analysis
The SWOT Matrix
A firm should not necessarily pursue the more lucrativeopportunities Rather it may have a better chance atdeveloping a competitive advantage by identifying a fit
between the firms strengths and upcomingopportunities In some cases the firm can overcome aweakness in order to prepare itself to pursue acompelling opportunity
To develop strategies that take into account the SWOTprofile a matrix of these factors can be constructedThe SWOT matrix (also known as a TOWS Matrix)
882019 Session 2 - MABD
httpslidepdfcomreaderfullsession-2-mabd 2527
120310 25
SWOT Analysis
Strengths Weaknesses
OpportunitiesS-O strategies W-O strategies
ThreatsS-T strategies W-T strategies
The SWOT Matrix
882019 Session 2 - MABD
httpslidepdfcomreaderfullsession-2-mabd 2627
120310 26
SWOT Analysis
S-O strategies pursue opportunities that are agood fit to the companys strengths
W-O strategies overcome weaknesses topursue opportunities
S-T strategies identify ways that the firm canuse its strengths to reduce its vulnerability toexternal threats
W-T strategies establish a defensive plan toprevent the firms weaknesses from making it
highly susceptible to external threats
882019 Session 2 - MABD
httpslidepdfcomreaderfullsession-2-mabd 2727
120310 27
882019 Session 2 - MABD
httpslidepdfcomreaderfullsession-2-mabd 2427
120310 24
SWOT Analysis
The SWOT Matrix
A firm should not necessarily pursue the more lucrativeopportunities Rather it may have a better chance atdeveloping a competitive advantage by identifying a fit
between the firms strengths and upcomingopportunities In some cases the firm can overcome aweakness in order to prepare itself to pursue acompelling opportunity
To develop strategies that take into account the SWOTprofile a matrix of these factors can be constructedThe SWOT matrix (also known as a TOWS Matrix)
882019 Session 2 - MABD
httpslidepdfcomreaderfullsession-2-mabd 2527
120310 25
SWOT Analysis
Strengths Weaknesses
OpportunitiesS-O strategies W-O strategies
ThreatsS-T strategies W-T strategies
The SWOT Matrix
882019 Session 2 - MABD
httpslidepdfcomreaderfullsession-2-mabd 2627
120310 26
SWOT Analysis
S-O strategies pursue opportunities that are agood fit to the companys strengths
W-O strategies overcome weaknesses topursue opportunities
S-T strategies identify ways that the firm canuse its strengths to reduce its vulnerability toexternal threats
W-T strategies establish a defensive plan toprevent the firms weaknesses from making it
highly susceptible to external threats
882019 Session 2 - MABD
httpslidepdfcomreaderfullsession-2-mabd 2727
120310 27
882019 Session 2 - MABD
httpslidepdfcomreaderfullsession-2-mabd 2527
120310 25
SWOT Analysis
Strengths Weaknesses
OpportunitiesS-O strategies W-O strategies
ThreatsS-T strategies W-T strategies
The SWOT Matrix
882019 Session 2 - MABD
httpslidepdfcomreaderfullsession-2-mabd 2627
120310 26
SWOT Analysis
S-O strategies pursue opportunities that are agood fit to the companys strengths
W-O strategies overcome weaknesses topursue opportunities
S-T strategies identify ways that the firm canuse its strengths to reduce its vulnerability toexternal threats
W-T strategies establish a defensive plan toprevent the firms weaknesses from making it
highly susceptible to external threats
882019 Session 2 - MABD
httpslidepdfcomreaderfullsession-2-mabd 2727
120310 27
882019 Session 2 - MABD
httpslidepdfcomreaderfullsession-2-mabd 2627
120310 26
SWOT Analysis
S-O strategies pursue opportunities that are agood fit to the companys strengths
W-O strategies overcome weaknesses topursue opportunities
S-T strategies identify ways that the firm canuse its strengths to reduce its vulnerability toexternal threats
W-T strategies establish a defensive plan toprevent the firms weaknesses from making it
highly susceptible to external threats
882019 Session 2 - MABD
httpslidepdfcomreaderfullsession-2-mabd 2727
120310 27