SWOT Analysis Analysing the Strategic Position of

Transcript:SWOT Analysis Analysing the Strategic Position of:
SWOT Analysis Analysing the Strategic Position of a Business to gain competitive advantage – perhaps not with these products/names SWOT Analysis - Concept links What is SWOT Analysis? SWOT Analysis helps a business assess its competitive strength and the nature of its external environment SWOT Analysis Overview STRENGTHS WEAKNESSES OPPORTUNITIES THREATS Internal to the Business External to the Business Assessing Strengths & Weaknesses Likely Evidence of Strengths & Weaknesses Market share (%) Profitability (operating profit %) Efficiency (unit costs) Brand recognition & loyalty Market capitalisation (value & growth) Reputation for quality Evaluating Strengths and Weaknesses Important to focus only the most important Is the judgement made reliable (independent)? How sustainable are the strengths? Can weaknesses be overcome? How? Opportunities & Threats OPPORTUNITIES THREATS External to the Business Assessing Opportunities & Threats A key challenge for any business is to convert weaknesses into strengths. For example:. Don’t forget that for every perceived threat, the same change presents an opportunity for a business SWOT Analysis Example – Tesco (2019) STRENGTHS WEAKNESSES OPPORTUNITIES THREATS UK market leader – supermarket retailing (27% market share) Leader in e-commerce retailing (50% share of online sales in UK) Economies of scale Very efficient supply chain Damaged brand reputation (unethical treatment of suppliers & accounting scandal) Lack of clear market positioning (low cost strategy or global organization?) Regain lost UK market share through clearer focus on core market Improve customer loyalty through better customer service Emerging markets Joint Ventures Further loss of market share to price-discounters (Aldi & Lidl) Impact of Amazon Fresh entry into UK market Impact of foreign global entrants Fake Farm legal threat Explain one way in which the information in this SWOT analysis might influence strategic decisions by the management team at Tesco Tesco has a huge market potential in the grocery industry. With strategic decision-making and effective marketing tools, Tesco can increase its revenues and compete effectively with its rivals. Here are some recommendations for Tesco: Explore the emerging markets and expand its stores in Asian and African countries. Perform in-depth market research and market analysis before entering a new market to avoid failure and losses. Upgrade its online business and e-commerce sites to provide a pleasant shopping experience for customers. Take customer feedback regarding the launches of new ads and schemes. It can prevent any potential disapproval from the public. Resolve legal and financial matters including high debts, tax payments, and credit