Chapter08
SWOT
Analysis
•
•
•
•
Strengths
Weaknesses
Opportunities
Threats
Mission
An organization’s fundamental purpose
SWOT Analysis
To formulate strategies that support the mission
Internal Analysis
Strengths
(distinctive competencies) External Analysis
Opportunities
Weaknesses
Threats
Good Strategies
Those that support the mission and
• exploit opportunities and strengths
• neutralize threats
• avoid weaknesses
Copyright © by Houghton Mifflin
Figure 8.1
8–1
Porter’s Generic Strategies
Strategy Type
Definition
Examples
Differentiation
Distinguish products or services Rolex (watches)
Mercedes-Benz (automobiles)
Nikon (cameras)
Cross (writing instruments)
Hewlett-Packard (hand-held calculators)
Overall cost leadership
Reduce manufacturing and other costs
Timex
Hyundai
Kodak
Bic
Texas Instruments
Focus
Concentrate on specific regional market, product market, or group of buyers
Tag Heuer
Fiat, Alfa Romeo
Polaroid
Waterman Pens
Fisher Price
Copyright © by Houghton Mifflin
Table 8.1
8–2
The Miles and Snow Topology
Strategy Type
Definition
Examples
Prospector
Is innovative and growth oriented, searches for new markets and new growth opportunities, encourages risk taking
Amazon.com
3M
Rubbermaid
Defender
Protects current markets, maintains stable growth, serves current customers Bic eBay.com Mrs. Fields
Analyzer
Maintains current markets and current customer satisfaction with moderate emphasis on innovation
Dupont
IBM
Yahoo
Reactor
No clear strategy, reacts to changes in the environment, drifts with events
International Harvester
(in the 1960s and 1970s)
Joseph Schlitz Brewing Co.
W. T. Grant
Copyright © by Houghton Mifflin
Table 8.2
8–3
The Product Life Cycle
High
Stages
Growth
Maturity
Decline
Sales Volume
Introduction
Low
Time
Copyright © by Houghton Mifflin
Figure 8.2
8–4
Related Diversification
Basis of Relatedness
Examples
Similar technology
Phillips, Boeing, Westinghouse, Compaq
Common distribution and
Analysis
•
•
•
•
Strengths
Weaknesses
Opportunities
Threats
Mission
An organization’s fundamental purpose
SWOT Analysis
To formulate strategies that support the mission
Internal Analysis
Strengths
(distinctive competencies) External Analysis
Opportunities
Weaknesses
Threats
Good Strategies
Those that support the mission and
• exploit opportunities and strengths
• neutralize threats
• avoid weaknesses
Copyright © by Houghton Mifflin
Figure 8.1
8–1
Porter’s Generic Strategies
Strategy Type
Definition
Examples
Differentiation
Distinguish products or services Rolex (watches)
Mercedes-Benz (automobiles)
Nikon (cameras)
Cross (writing instruments)
Hewlett-Packard (hand-held calculators)
Overall cost leadership
Reduce manufacturing and other costs
Timex
Hyundai
Kodak
Bic
Texas Instruments
Focus
Concentrate on specific regional market, product market, or group of buyers
Tag Heuer
Fiat, Alfa Romeo
Polaroid
Waterman Pens
Fisher Price
Copyright © by Houghton Mifflin
Table 8.1
8–2
The Miles and Snow Topology
Strategy Type
Definition
Examples
Prospector
Is innovative and growth oriented, searches for new markets and new growth opportunities, encourages risk taking
Amazon.com
3M
Rubbermaid
Defender
Protects current markets, maintains stable growth, serves current customers Bic eBay.com Mrs. Fields
Analyzer
Maintains current markets and current customer satisfaction with moderate emphasis on innovation
Dupont
IBM
Yahoo
Reactor
No clear strategy, reacts to changes in the environment, drifts with events
International Harvester
(in the 1960s and 1970s)
Joseph Schlitz Brewing Co.
W. T. Grant
Copyright © by Houghton Mifflin
Table 8.2
8–3
The Product Life Cycle
High
Stages
Growth
Maturity
Decline
Sales Volume
Introduction
Low
Time
Copyright © by Houghton Mifflin
Figure 8.2
8–4
Related Diversification
Basis of Relatedness
Examples
Similar technology
Phillips, Boeing, Westinghouse, Compaq
Common distribution and