SITUATION ANALYSIS
Business
Mission
Statement
Objectives
Situation or
S.W.O.T.
Analysis
Who conducts a S.W.O.T. Analysis?
Companies do and just
to name a few…
What is a Situation Analysis?


A situation analysis is referred to as a S.W.O.T.
Analysis
Definition:
 The
firm should identify its internal strengths (S) and
weaknesses (W) and also examine external
opportunities (O) and threats (T).
When are S.W.O.T. Analysis Conducted?

Before marketing activities can be defined,
marketers must understand the current and potential
environment that the product or service will be
marketed in
How To Conduct a S.W.O.T. Analysis?

Research your
company and
your competitors


Databases
Companies can
also hire
someone to
conduct a
SWOT analysis
for them
Strengths and Weaknesses (Internal)
Focus on organizational resources such as:
• Production costs
• Marketing skills
• Financial resources
• Company image
• Brand image
• Employee capabilities
• Available technology
Opportunities and Threats (External)
Marketing managers must analyze aspects of
the marketing environment
• Environmental scanning-the collection and
interpretation of information about forces,
events, and relationships in the external
environment that may affect the future of
the organization or the implementation of
the marketing plan.
Opportunities and Threats Cont.
Environmental scanning helps identify market
opportunities and threats and provides
guidelines for the design of marketing strategy
•
Why Do Firms Conduct S.W.O.T. Analysis?


Marketers must understand the current and potential
environment that the product or service will be
marketed in
The most often studied macroenvironmental forces are:
Social
 Demographic
 Economic
 Technological
 Political
 Legal
 Competitive

Example of a S.W.O.T. Analysis

Nike Inc. SWOT Analysis:
 Strengths

Global Brand with Strong Brand Equity


Nike is a globally recognized brand with 38 years of
established equity
The swoosh symbol is one of the top ten most recognized brand
symbols in the world
 Skimming

Price Strategy
Pricing products slightly higher than competitors
 Advertising/Endorsement
 Growth
 Capitalization

of Its Products
Releases new product lines with the seasons of various sports
Example of a S.W.O.T. Analysis Cont.
 Weaknesses
 Over

commercialization
A huge brand in a market looking for something new
 Easy tone shoes
 Pricing

Because prices are slightly higher this can put Nike at a
disadvantage
 Varied

as a Competitive Disadvantage
Reputation
Lost some brand equity through the public release of information
about the company operating sweatshops in third world countries
Example of a S.W.O.T. Analysis Cont.
 Opportunities
 Consumer

The brand attempts to enhance the quality of life for consumers
by creating better quality products than the competition
 Nike Pro Combat Line
 Emerging

Markets
China, Russia, and India are huge markets that are now pursing
consumers and consumer shopping goods
 Acquiring

Lifestyle Improvements
Smaller Competitors
Sports apparel market is saturated with smaller competitors
 Nike can merge with companies like Russel Athletics,
Champion, and Starter for an example
Example of a S.W.O.T. Analysis Cont.
 Threats
 Intense

Competition
Reebok, Adidas, and Under Armor
 Economy

Global recession
 Retail

Spending Decline
Negative growth in shopping both online and in stores