Chapter 4 Flashcards
Benefits of SWOT Analysis
Simplicity Lower Costs Flexibility Integration and Synthesis Collaboration
Productive SWOT Analysis Keys
- Stay Focused
- Search Extensively for Competitors
- Collaborate with Other Functional Areas
- Examine Issues from the Customers’ Perspective
- Look for Causes, Not Characteristics
- Separate Internal Issues from External Issues
SWOT Matrix
Four Cell Array
Based on customer perceptions, not manager perception
*Focus is on competitive advantage by matching strengths with opportunities
Competitive Advantages
Arise from internal and external sources
- Are real differences between competing firms
- Can also be based more on perception than reality
Operational Excellence
Focus on efficiency of operations and processes
Lower cost operations lead to lower prices for customers
Product Leadership
Excellence in technology and product development
Most advanced, highest quality product offering
Customer Intimacy
Understands customers better than competition
Develop long term customer relationships
Four Directions for Strategic Efforts
Aggressive
Diversification
Turnaround
Defensive
Aggressive Strategy
Many Internal Strengths - Many External Opportunities
Diversification Strategy
Many Internal Strengths - Many External Threats
Turnaround Strategy
Many Internal Weaknesses - Many External Opportunities
Defensive Strategy
Many Internal Weaknesses - Many External Threats
Strategy Canvas
Identifies factors currently in competition and what customers receive from existing offerings (horizontal axis)
Offering level by buyers for each factor (vertical axis)
Company’s relative performance across industry (value curve)
4 Actions Framework
Reduce, Create, Raise, Eliminate
- Which factors that industry takes for granted should be eliminated?
- Which factors should be reduced well below the industry standard?
- Which factors should be raised well above the industry standard?
- Which factors should be created that the industry has never offered?
Good Strategy
Match the firm’s strengths to the available opportunity
Blue Ocean Strategy
Focus
Divergence
Compelling Tagline
Focus Strategy
Blue Ocean
Does not diffuse the company’s efforts across all key factors of competition
The Value Curve shows focus
Divergence Strategy
Blue Ocean
Differs from other competitors in the market
The Value Curve is unique from competitors
Compelling Tagline Strategy
Clear-cut statement that delivers clear, compelling message to customers
Marketing Goals
*Statements of broad, desired accomplishments
Attainability
Consistency
Comprehensiveness
Intangibility
Marketing Objectives
*Specific, quantitative benchmarks use to measure progress towards achievement of marketing goals
Attainability
Continuity
Time Frame
Assignment of Responsibility
Continuous Objectives
Similar to objectives from previous periods
Are only slightly modified over time - does not require new strategy, effort or implementation to be achieved
Discontinuous Objectives
Significantly elevate the level of performance on an outcome
Requires new strategies
Part of applying for the Malcolm Baldrige National Quality Award
3 Basic Strategies
Operational Excellence
Product Leadership
Customer Intimacy
