Tools Flashcards
What are internal threats?
Constraints within a firm’s own control
What are examples of internal constraints?
finance
people
marketing
production
Go over each of the SWOT factors.
Strengths - things the business does well/better than competitors
Weaknesses - things that the organisation does not do so well
Opportunities - external factors that provide prospects for success
Threats - external factors that hold back the business
Advantages of using SWOT
- useful and visual
- broad range of applications
- helps managers to understand market position
- helps to reflect
- examination of strategic opportunities
- facilitates strategic thinking
Disadvantages of using SWOT
- static, only a snapshot, can be quickly outdated
- requires honesty
- may be errors/biases/omissions
- does not guarantee a strategy’s success
- needs to be used with others
What is a SWOT analysis?
a bus management tool that provides a framework for strategic analysis and decision making
What is the Ansoff matrix?
a strategic decision-making tool used to devise product and market growth strategies for an organisation
What is market penetration?
developing existing markets with existing products.
increase sales revenue and market share.
What are features/advantages of market penetration?
- relatively low risk
- strategies to increase usage rate of existing customers
- little need for investment expenditure/market research
- to gain market dominance in growing markets or reduce competition in mature markets
What is market development?
selling existing products in new markets
What are features of market development?
relies on a greater distribution network to go to different places
riskier - might not succeed
may be expensive, especially if overseas
What is product development?
introducing new products to existing customers
What are features of product development?
product differentation
remain/improve competitiveness
riskier - can be expensive
products developed to replace others
marketed at current customers
What is diversification?
organisations moving into new markets with new products
Is diversification risky?
It is high-risk since they company does not have experience/expertise in the market, rivals may have already established themselves with brand recognition and customer loyalty
