SWOT analysis of the advertising agency "ROI Group"
SWOT analysis technology is widely used in strategic management and management as it is a
simple and high-quality tool for assessing the company's competitiveness in the market.
The SWOT analysis methodology involves establishing links between the organization's
strengths and weaknesses, as well as opportunities and threats identified at the appropriate stages of
strategic analysis (internal and external environment analysis).
SWOT analysis allows to develop strategies in four fields. The first version of the strategy is
obtained by correlating information on the strength of the enterprise and its capabilities.
The second option is determined from the ratio of information on weaknesses and its
capabilities.
The third variant of strategies is formulated at the intersection of information on the forces of
the enterprise and possible threats from the external environment.
The fourth option is based on comparing information on the company's weaknesses and external
threats.
Thus, a system of strategies is created for the enterprise as a comprehensive vision of its
strategic resources.
Based on the analysis of the external environment, opportunities and threats were formulated,
based on the analysis of the internal environment – the strengths and weaknesses of the ROI Group
enterprise, on the basis of which a SWOT matrix was formed. (Table 1.5).
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S
O
1) Innovative technologies
1) Increase in the birth
2) Image, reputation of the organization
2) The emergence of new materials
3) Variety of services provided
and technologies
4) Highly qualified staff
3) Simplified taxation and tax rates
5) Availability of regular customers
4) Market growth due to the entry of
6) Low dependence on suppliers
new international players
7) Ability to work with installments
8) Stable profitability of the
company
9) Orientation
of
the
agency's
activities largely to meet customer needs
W
T
1) Weak organization of the marketing
information system at the enterprise
2) Small
number
of
1) Changing tastes and needs of the
population
2) Tough competition в due to the
additional
services по compared tocompetitors
high level of technological progress
3) Lack of free services
3) Economic downturn
4) Legislative regulation: introduction
of sanctions against foreign suppliers
Table 1.5 SWOT matrix
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Analysis of competitive opportunities of the enterprise.
Strengths of the company and its capabilities:
SO - by implementing all the strengths of ТОО «ROI Group LLP, the company will be able to
expand the list of its customer base and enter new markets or segments рынка of the advertising services
market. An advertising agency can enter into cooperation with other large companies, which will allow
it to diversify its products and services, as well as provide additional services. The use of innovative
technologies gives the company a competitive advantage and an opportunity to increase sales. The
company's independence from suppliers makes it possible to reduce costs and expenses, quickly respond
to changing tastes and needs of consumers, and set a loyal price in relation to customers by searching
for new suppliers of high-quality and inexpensive materials. The company has also gained a positive
reputation due to its high-quality, timely work, highly qualified staff, high-quality service, and
technological equipment, which will undoubtedly help to attract new customers and partners to the
organization.
Weaknesses of the company and its capabilities:
WT - A weak organization of the marketing information system at the enterprise can make the
company vulnerable in the current economic situation in the country and in the world, and the number
of customers applied to foreign suppliers will decrease and this will undoubtedly affect the company's
profit. Due to fierce competition в due to the high level of technological progress, the company may lose
both regular and potential customers. The lack of free and additional services may also affect the outflow
of customers. Legislative regulation, namely: the introduction of new customs sanctions в against
foreign suppliers may lead to an increase in the cost of resources, which will affect the selling price,
depletion of stocks, and, as a result, freezing of production if the company cannot find an opportunity to
import substitution.
Weaknesses of the enterprise and external threats:
ST- Reputation, the company's image, the variety of services provided, and the availability of
innovative technologies minimize the risk of changing customer tastes and needs for the company. The
presence of regular customers who cooperate on a long-term basis, which ensures the stability of profits,
as well as the ability to work with deferral and highly qualified personnel allow the company to avoid
the threats associated with fierce competition due to the high level of technological progress and the
threat of an economic downturn. Weak dependence on suppliers gives the company "ROI Group"
freedom of choice and the inability of the supplier to manipulate the cost of resources. The sanctions
imposed on foreign suppliers will have little impact on the company's operations, as the advertising
agency will be able to switch to a new supplier - an import substitute with minimal costs.
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Strengths of the enterprise and external threats:
WO- A weak organization of the marketing information system in the enterprise may prevent
the company from entering new markets or segments of the advertising services market. The lack of
additional services по compared to competitors may be an obstacle to serving additional groups of the
population. The lack of free services may lead to a drop in customer interest in the advertising agency's
activities, which will affectthe desire of other companies to cooperate with the company.
In the expanded SWOT matrix below SWOT, you can see the element-by-element relationship
of all factors of the primary SWOT analysis and the formed pairs (groups) of strategies. In each of the
fields of the extended SWOT matrix, all possible paired combinations were considered and those that
will be used in developing the final strategy of the organization were highlighted. The data is presented
in table 5.
Table 5 - Extended SWOT matrix of the "ROI Group" enterprise
1
2
3
Strengths (S)
Weaknesses(W)
-
Innovative technologies.
-
-
Image and reputation of the
marketing
organization.
system in theenterprise.
Variety of services provided.
-
Highly qualified staff.
additional
-
Availability Regular customers have
compared to competitors.
-
Ability to work with installments.
-
Stable profitability of the company.
-
The focus of the agency’s activities is
largely on customer satisfaction.
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-
A
small
information
-
little dependence on suppliers.
-
Weak organization of the
number
of
services
по
Lack of free services.
Continuation of table 5
1
2
Opportunities (O)
-
-
SO-strategy
WO - strategy
Increasing the birth -
Access
rate.
сегментыmarket segments.
services to the organization's
The emergence of -
Expansion of the client base
current line of services.
new
Cooperation
materials -
and technologies.
-
3
Simplified system of taxation
to
new
markets
with
or -
other
-
Introduction
of
additional
Increase the market share by
companies and organizations.
developing
Increase in sales volume.
services and directions in order
and tax
new types
of
to gain new market segments.
rates.
-
Creation and distribution of
free
advertising
and
informational materials about
the company's activities.
Threats(T)
-
-
-
Changing tastes
-
ST-strategy
WT - strategy
- Switching the company from an
-
Investing in the marketing
and needs of the
importedsupplier to a domestic
department and your own
population.
manufacturer.
advertising.
Tough competition- - Constant updating of the technical
due to the high level
condition of the equipment.
of technological
progress.
Economic downturn.
Legislative
regulation:
introduction of
sanctionsagainst
foreign suppliers.
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-
Development of
technologies and products
using domestic raw
materials.
-
Minimize costs by switching
to a domestic supplier.
-
Expansion of sales channels.
Thus, we identified the opportunities that the firm will use in
implementing the strategy, the threats that it will minimize with the new strategy,
and the strengths and слабые weaknesses that will also be taken into account
when developing the strategy.
Classification and ranking of enterprise problems
In every organization, from time to time there are crisis situations that
involve solving problems and eliminating the causes. There are minor issues that
can be solved at the department level, as well as global issues that can be solved
at the organization level. In any case, problems need to be eliminated and every
manager strives to do this at the initial stage in order to avoid negative
consequences.
To identify problems, we collected and analyzed data that represent the
shortcomings of the organization's system.
Subsystems that directly cause these problems were analyzed, and
feedback was found that makes it possible to judge the deviation, error value, or
lack of the system.
After analyzing the degree of competition in the industry with the help
of SWOT analysis, it was revealed that a powerful competitive forces the strength
of competitors ' actions. Due to the high level of technological progress, there is a
high threat of competitors using new materials and technologies. Another
powerful competitive force is the market power of the consumer, так as there is a
threat of changing tastes andneeds due to the high level of technological progress
and constantly developing technologies, as well as the existing unstable economic
situation in the country and the world that negatively affects на purchasing power.
The analysis revealed the strengths and weaknesses of the advertising
agency "ROI Group".
The company's strengths are its product line, high-quality work
performed on time, highly qualified staff, high-quality service, and technological
equipment, as ее well as its positive reputation and trust from customers.
The weak side is the weak organization of the marketing systemin the
enterprise, which is manifested in the absence of advertising and additional
services. The company does not have such a bright advertising campaign
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compared to its competitors. The lack of a large-scale advertising campaign is
explained by cooperation with law firms, on a long-term basis, but often
employees of these law firms become clients of the firms, but already as an
individual.
The analysis of the external environment showed that the company is in
a favorable external environment since the positive factors outweigh the negative
ones, and their impact on the company's activities is generally stronger, therefore,
there are opportunities for further improvement and development of the
company's strategy.
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Literature:
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Thomas L. Wheelen, J. David Hunger. — 13th ed., Pearson Education, 2018.
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Berezin. - 3rd ed., ispr. and add. - Moscow: Vershina, 2008. - 480 p.: ill., tab.
3. Burov V. N. et al. Strategic management of firms. Modeling. Practicum.
Business Games, Moscow: 2002.
4. F. Kotler Marketing management. - SPb, Peter Kom, 2005. - 896s.
5. Wilson R. F. Planning an Internet marketing strategy. Wilson, Moscow:
Grebennikov Publishing House, 2003–, 264p.
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