ASSESSING ORGANIZATIONAL RESOURCES AND OPPORTUNITIES Competitive Advantage SWOT Analysis Strengths (Internal) Weaknesses (Internal) Opportunities (External) Threats (External) The result of a company’s matching a core competency (superior skill or resources) to opportunities in the marketplace Ex. Ebay © Used By Permission. Copyright © Houghton Mifflin Company. All rights reserved. Gather Intelligence Key Outline Term 2–1 Key Outline Term Copyright © Houghton Mifflin Company. All rights reserved. SWOT: Internal Factors 2–2 SWOT: Internal Factors Strengths: competitive advantages or core competencies. Must relate to satisfying the customer. Work Processes, Organization, Culture, Staff, Quality, Production capacity, image, financial resources, Customer service Ex. John Deere Weaknesses: limitations a company faces in developing or implementing a marketing strategy. Work Processes, Organization, Culture, Staff, Quality, Production capacity, image, financial resources, Customer service Ex. K-Mart promotes service, experience and reputation Key Outline Term Copyright © Houghton Mifflin Company. All rights reserved. 2–3 Key Outline Term Copyright © Houghton Mifflin Company. All rights reserved. 2–4 1 SWOT: External Factors SWOT: External Factors Opportunities: favorable conditions in the environment that could produce rewards if acted on properly Threats: conditions or barriers that may prevent the firm from reaching its objectives. Need to be acted on to prevent them from limiting the organizations capabilities Market segment analysis, industry/competition analysis Technology Government impacts Market segment analysis, industry/competition analysis Technology Government impacts Etc. Amazon iPhone competition Key Outline Term Copyright © Houghton Mifflin Company. All rights reserved. 2–5 Key Outline Term Copyright © Houghton Mifflin Company. All rights reserved. SWOT Analysis 2–6 SWOT Analysis An assessment of the organization’s strengths, weaknesses, opportunities, and threats Key Outline Term Figure 6.2 Copyright © Houghton Mifflin Company. All rights reserved. 2–7 Figure 2.2 Copyright © Houghton Mifflin Company. All rights reserved. Key Outline Term 2–8 2 Group Exercise What would you look for when conducting a SWOT analysis for Best Buy? What are some of their strengths? What are some of their weaknesses? What are some potential opportunities? What are some potential threats? Key Outline Term Copyright © Houghton Mifflin Company. All rights reserved. 2–9 3