evaluate
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Put results on SWOT analysis matrix
Strength Weaknes
s
s
Opportuni ties
Threats
weak ness
opportunities
Reverse strategy
Line growth strategy
strength
Indentifying threats and opportunities(Chapter 14 Page 343) Having undertaken an appraisal of the wider external environment using PESTEL analysis, market analysis and an analysis of the competitive environment using the five forces model, it is possible to summarize the main opportunities and threats.
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Existing products/new markets
Market development This could involve the marketing of products to new geographical
areas, new channels of distribution and new users of the product or new uses of the product. This strategy is often used where there are significant economies of scale, with high fixed costs and inflexible facilities.
Retrenchment(downsizing,reduce department)
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New products/existing markets
Product development With a rapid cycle of introduction, growth, maturity and decline, it is necessary to have new products being developed to replace the existing products. For example, in the car industry, new products are introduced on a regular basis in order to compete against competitors.
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SWOT analysis
SWOT Analysis was developed by Albert Humphrey. It is a tool to find out the Strengths, Weaknesses, Opportunities, and Threats that are to be expected in a project or in a business venture or in something similar. It means that the marketing environment (internal and external to the organization or individual) is looked at.
something that gives it particular credibility. It can be a particular attribute of a product or service that provides a competitive advantage, a resource such as a strong financial position or new production facilities, or superior competencies or capabilities. Weaknesses A weakness is something an organization lacks or performs in an inferior way in comparison to others.
Strategies based on launching new products into existing markets. PRODUCT DEVELOPMENT
Strategies based on finding new markets for existing products. MARKET DEVELOPMENT
Make sure the current strategy of one company Make sure the changing external environment According to the company resources combination,
confirm the ability and limit Use general matrix or a similar way to grade and
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Opportunities and Threats(External)
Opportunities An opportunity is a condition in the environment that is helpful.
Threats A threat is a condition that is harmful to the achievement of the objectives of the organization.
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Ansoff’s product/market matrix
Ansoff’s product/market matrix can help to specify the direction in which a company intends to develop its strategic portfolio.
Indentifying Suitable Strategic Options
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Indentifying strategic options
SWOT analysis matrix Ansoff’s product/market matrix
Substitutes
Bargaining Power of Suppliers
Bargaining Power of Buyers
Rivalry
Michael Porter's Five
Forces Model
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Threat of New Entrants
The steps of SWOT analysis
Strategies based on launching new products into new markets. RELATED OR UNRELATED DIVERSIFICATION
Pmarkets
Market Penetration
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Ansoff’s product/market matrix
Existing products
New products
Existing markets
New markets
Strategies based on existing markets and existing products. CONSOLIDATION/PEN ETRATION
Defensive Diversification Strategy
threats
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TOWS analysis matrix
The TOWS analysis matrix can be used as extension of SWOT analysis. Having indentified the key strengths and weaknesses of the organization and the opportunities and threats in the environment.
With the TOWS matrix the following analysis is undertaken to suggest strategies that: 1. Use a strength identified from an internal appraisal of the organization to ‘take advantage of an environmental opportunity or combat an environmental threat’. 2.Can help the organization correct a weakness identified from an internal appraisal of the organization to ‘take advantage of an environmental opportunity or combat an environmental threat’.
Consolidation
Maintenance of the current position: this may be appropriate when trading conditions are difficult. For example. The firm may be uncertain of the future and may wish to preserve its existing cash holdings and withhold from investing in new ventures. In order to mainten market share, one company can select Strategy of Product Differentiation to advance customer loyalty degree.