Conseptual FrameWorkOF SWOT Analysis

defining its bussinesidentifie the opportunities and threatsdetermine the bussinesss key success factorslook inward and evaluated its own capabilities and skill

Model of the Strategic Management Process

Matching the organizational resources and skills to the key success factors of the business provides data that are useful for formulating, implementing, and controlling strategic plans designed to successfully take advantages of opportunities and combat threats

Framework for assessing SWOT of an organization

technological

Identify the critical environmental factorsMonitor the changes globally that appears in the critical environmental factorsForecast the cumulative impacts on the industry characteristic.

KEY SUCCESS FACTORSThe most important element in the framework for analyzing the SWOT of a business is the accurate determination of its key success factors.

The key success factors are change over time.The key success factors are different in other industries.

Of INDUSTRY CHARACTERISTIC1. Nature and Degree of Competition2. Industry Globalization3. Barriers to Entry4. Competitive Power of Substitute Products5. Buyer Power6. Supplier Power

Nature and Degree of Competition The opportunities and threats as well as the key success factors in a industry are a function of the intensity of rivalry and the competitions tactics.

INDUSTRY GLOBALIZATIONA global industries is one in which the strategic positions of competitors in major geographic or national markets are fundamentally affected by their overall global positions

A global (or multinational) companyNetwork located in a numbers of countriesLinked with the parent companyCommon ownership and common global strategyThe parent company control the affiliates activities and branding

A key attribute of global companiesHaving ownership of distribution system in key foreign market that enable:Cross-subsidizationInternational retaliationWorld scale volumeGlobal brand dominance and distribution positions

A global company must compete on a worldwideUse its network to launch attack against competitorsMoves by ones global company are met by counter-moves by competitorsSome industries are more global than others

..to study and understand the pillars that serve as the foundations for the dominant competitors global strategies..

BARRIERS TO ENTRY...the significance of the competitive threat of entry by new firms in the market depends on the barriers to entry, especially the potential entrants expectations about how the incumbent firms will react to it..

Important barriersEconomies scaleCapitalDistribution channelsBrand identificationCost advantagesLearning or experience curveGovernment policyThe reaction of existing competitorsSwitching costs

COMPETITIVE POWER OF SUBSTITUTE PRODUCTSSubstitute can limit the potential of an industry by putting upper limits on the prices ..the more attractive the price-satisfaction tradeoff of substitute products, the greater is the danger of losing industry sales to the substitute products..

Buyer PowerBuyers can influence competition in an industry by demanding lower prices, higher quality, better service, improved warranty terms, and forcing sellers to outdo each other for the buyers business.

Supplier powerPowerful Suppliers can influence the buying industrys cost, prices, quality, and ultimately its overall prospects for growth and profitability

Evaluation of a Firms Strengths and WeaknessesIdentify the small number of key success factors for the business.Develop a profile of the firms resources and skills.Compare the firms resources and skills profile to the key success factors of the business.Identify the areas of major strengths.Compare the firms strengths and weaknesses with the strengths and weaknesses of its major rivals in the business.Isolate areas in which the firms resources and skills are significantly stronger or weaker than those of its major competitors.

THANKS FOR YOUR ATTENTION

**************************