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MARKETING AND
ENTRERPRISE STRATEGY
Susan Simei-Cunningham
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INTERNAL ANALYSIS
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Learning Outcomes
• By the end of this session the student will be
able to:
• Undertake an internal analysis of an
organisation and its marketing processes.
Understanding all the factors that could
impact upon the success of the strategic
plan.
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Why an Internal Analysis?
• The internal environment affects the
probability an organisation has to sustain
it’s competitive advantage.
• But first, identifying the structure, culture,
and unique resources/capabilities + core
competencies so that it’s strategies can
be implemented is vital.(where are you
now?)
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Why an Internal Analysis?
• All competitive advantages have a limited
life; companies like GE, Nokia, Nintendo
have continued to innovate to stay ahead.
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Situational Analysis
• A situational analysis will tell us where we
are now.
• It involves the systematic collection and
evaluation of past and present economical,
political, social, and technological data.
• It is aimed at ......
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Situational Analysis
• (1) identification of internal and external
forces that may influence the organization's
performance and choice of strategies
• (2) assessment of the organization's current
and future strengths, weaknesses,
opportunities, and strengths.
• See also PEST analysis.
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SWOT ANALYSIS
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What is a SWOT Analysis?
• A SWOT analysis is a framework for generating
strategic analysis from a situational analysis.
• Can be applied at corporate and business unit
(SBU) level.
• Described by Learned, Edmund P.,
Christiansen, C. Roland, Andrews, Kenneth,
and Guth, William D. ss Policy: Text and Cases
1969.
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Strengths and Weaknesses
• The Internal Analysis of strengths and
weaknesses focuses on internal factors that
give an organization certain advantages and
disadvantages in meeting the needs of its
target market.
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Weaknesses
• Weaknesses refer to any limitations a
company faces in developing or
implementing a strategy.
• Weaknesses should also be examined from
a customer perspective because customers
often perceive weaknesses that a company
cannot see
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Strengths
• Strengths refer to core competencies that
give the firm an advantage in meeting the
needs of its target markets.
• Any analysis of company strengths should
be market oriented/customer focused
because strengths are only meaningful when
they assist the firm in meeting customer
needs.
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What is a SWOT film
• http://mystrategicplan.com/resources/topic/s
wot-analysis/
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What is a Core Competency?
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Image of the relationship between core competencies and
core product
End User Products
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2
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Business 1
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Business 2
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Business 3
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Business 4
Core Product 1
Core Product 2
Core
Competencies
Core
Competencies
Core
Competencies
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Exercise on Core Competencies
• List the core competencies for at least 4
below; do they meet the criteria?
Starbucks
Volkswagen
Orange
Harrods
Sony Eriksson
Sky
Tesco’s
Alperton College
Samsung
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SWOT
• This type of analysis is most useful when
you have a limited amount of time to address
a complex strategic issue
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Let’s examines Nike’s SWOT
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Point of analysis…value chain
• Value Chain Analysis…helps with SWOT
• includes the physical creation of what a
company makes & sells; and the activities
that take place to make it happen ($$) You
can study this at a macro or micro level
Think about FedEx or the Internet (where did
they create value for us?)
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Finally.....
• You produce a SWOT profile which is sued
as a basis for generating company goals,
strategy formulation and implementation
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Limitations of SWOT
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Other tools
• VRIO
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Performing a SWOT
http://mystrategicplan.com/swot/index.php
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Find definitions for
• Outsourcing
• Insourcing
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Outsourcing
• What do you think?
• When can this be effective? It includes
purchasing a value-creating activity from an
external supplier.
• Think about the concept of ‘superiority’ and
how often a firm can meet that (can they?)
What is key to making this work – what
strengths internally must a company have?