SWOT, TOWS and PEST analysis. Henning Høy Nygaard Business Development Manager Danish Federation of SMEs
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1 SWOT, TOWS and PEST analysis Henning Høy Nygaard Business Development Manager Danish Federation of SMEs 1
2 The SWOT-analysis The SWOT tool A systematic and structured analysis with the purpose of: Identifying and analysing the strong and weak sides of your company (internal analysis) Identifying and analysing the opportunities and threats that surround your company (external analysis) S The Strong sides of your company W The Weak sides of your company O The Opportunities outside the company T The Threats outside the company
3 The SWOT-analysis The SWOT tool THE INTERNAL ANALYSIS STRENGTHS WEAKNESSES THE EXTERNAL ANALYSIS OPPORTUNITIES WEAKNESSES
4 The SWOT-analysis The SWOT tool Strengths Weaknesses Opportunities Threats These are all those things you feel you do better than the competition. They may be innovative product features, ways you deal with customers, patents in place, or a particularly skilled staff. These are the things the competition does better than you. They may be processes you feel are inefficient, areas in which you feel exposed, skills you don t have, or product features that are falling behind. These are the trends, changes, and characteristics of your market that may offer opportunities for your business now or in the future. This may include new legislation that allows you to move into a new market, or makes your product even more attractive to customers. These are all the changes, and trends associated with your market that may present your business with problems either now or in the future. This may include new legislation that forces you to make expensive product changes, or even makes your product illegal.
5 SWOT: Strengths and The Weaknesses SWOT tool Strengths and weaknesses are all about the inside of your business, i.e. the internal analysis. Internal analysis means thinking about your strengths and weaknesses. They must be relative to your competition. What do you do better than them, where are you weaker?
6 SWOT: Some areasthe with potential SWOT tool Strengths or Weaknesses: Company Organization System Product Production Knowledge Image/position, economy Skills, training, attitudes, flexibility, motivation, language Communication (manual/computer, tele), systematic/analytic Quality, durability, price, service, costs, features, research and development Capacity, technical skills, automation, control Technical, market, competitors
7 SWOT: Potential external The Opportunities SWOT tool or Threats: Opportunities and threats are about what happens outside it, and make up your external analysis. External analysis means looking at changes in the market as a whole. These changes present the opportunities and threats to the future of your business
8 SWOT: Some areasthe with potential SWOT tool external Opportunities or Threats: Market Economy Society Competition Competitors Distribution Legislation Total growth, segment growth, niches, criterias (price, quality, durability etc.) Currency fluctuations Attitudes Leaving opportunities for newcomer? Strong/weak, dominance, economy, reaction patters, ambitions, objectives, 7 P s Coverage, number, service demands Protection of environment/consumers, standards
9 The marketing mix The SWOT tool Use the marketing mix have the 7P s of the marketing mix in the back of your mind when you are doing your analysis. People your staff, customers and competitors Product what it is and why customers buy it Place how and where you sell Price how much you charge Packaging how you present your products Promotion how you promote your business Physical evidence atmosphere/image of your business and product
10 The PEST tool The PEST tool A SWOT analysis measures a business unit or proposition, whereas a PEST analysis measures the market potential and situation, particularly indicating growth or decline, and thereby market attractiveness, business potential, and suitability of access. The PEST subject should be a clear definition of the market being addressed, which might be from any of the following standpoints: a company looking at its market a product looking at its market a brand in relation to its market a strategic option, such as entering a new market or launching a new product a potential acquisition a potential partnership an investment opportunity
11 The PEST tool table POLITICAL Ecological/environmental issues Current legislation home market Future legislation European/international legislation Regulatory bodies and processes Government policies Trading policies Funding, grants and initiatives Home market lobbying/pressure groups The PEST tool ECONOMIC Home economy situation Overseas economies and trends General taxation issues Taxation specific to product/services Seasonality/weather issues Market and trade cycles Specific industry factors Customer/end-user drivers International trade/monetary issues SOCIAL Lifestyle trends Demographics Consumer attitudes and opinions Media views Law changes affecting social factors Brand, company, technology image Consumer buying patterns Major events and influences Advertising and publicity TECHNOLOGICAL Competing technology development Associated/dependent technologies Replacement technology/solutions Maturity of technology Information and communications Technology legislation Innovation potential Technology access, licencing, patents Intellectual property issues
12 TOWS TOWS TOOL Internal relations Strong areas (S) 4. Weak areas (W) 4. Opportunities (O) 4. (SO) Strategic Action (WO) Strategic Action External relations Treaths (T) 4. (ST) Strategic Action (WT) Strategic Action
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