SWOT Analysis

SWOT Analysis Examples:

Sales SWOT

Strengths: You need to understand what your sales team is good at.

1.   What does your team do better than anyone else?

2.   What benefits do your customers get from working with you?

3.   What does your product or solution offer that your competitors can’t?

4.   Do you have unique processes, products, or services that set you apart?

The aim is to identify your unique selling proposition and capitalise on that.

Weaknesses: Every sales team has weaknesses. By identifying these you can find ways to strengthen them.

1.   What does the competition see as your biggest weakness?

2.   What do your customers regard as a weakness in your sales methods, product or service?

3.   When you lose a sale, why did it happen?

Opportunities: Opportunity is all around us, but is easily overlooked.

1.   What do you see as a good opportunity that will strengthen your business?

2.   In what segment of your market are clients consistently making purchases?

3.   What high margin products or services can you expose to a broader market?

4.   Have you noticed a change you can exploit in your market?

5.   Is there a market you can enter with greater profits potential?

Threats. These can have a huge impact on your business. You have to understand where danger exists in the marketplace.

1.   Does more that 25% of your sales revenue come from less than 10% of your customer base?

2.   What recurring challenges do your sales people face?

3.   Is there a competitor that consistently beats you in the marketplace?

4.   How much bad debt are you carrying

Nike SWOT Analysis

Strengths

Ø  Nike is a very competitive organization.

Ø  Nike has no factories. It does not tie up cash in buildings and manufacturing workers. This makes a very lean organization.

Ø  Nike is strong at research and development.

Ø  Nike is a global brand.

Weaknesses

Ø  The organization does have a diversified range of sports products. However, the income of the business is still heavily dependent upon its share of the footwear market. This may leave it vulnerable if for any reason its market share erodes.

Ø  The retail sector is very price sensitive. Nike does have its own retailer in Nike Town. However, most of its income is derived from selling into retailers

Opportunities

Ø  Product development offers Nike many opportunities. The brand is fiercely defended by its owners whom truly believe that Nike is not a fashion brand. However, like it or not, consumers that wear Nike product do not always buy it to participate in sport. This creates its own opportunities, since product could become unfashionable before it wears out i.e. consumers need to replace shoes.

Ø  There is also the opportunity to develop products such as sport wear, sunglasses and jewellery. Such high value items do tend to have associated with them, high profits.

Ø  The business could also be developed internationally, building upon its strong global brand recognition. There are many markets that have the disposable income to spend on high value sports goods. For example, emerging markets such as China and India have a new richer generation of consumers

Threats

Ø  Nike is exposed to the international nature of trade. It buys and sells in different currencies and so costs and margins are not stable over long periods of time. Such an exposure could mean that Nike may be manufacturing and/or selling at a loss. This is an issue that faces all global brands.

Ø  The market for sports shoes and garments is very competitive.

Ø  As discussed above in weaknesses, the retail sector is becoming price competitive. This ultimately means that consumers are shopping around for a better deal.

Starbucks SWOT Analysis

Strengths	Weaknesses
Ø  Starbucks Corporation is a very profitable organization, earning in excess of $600 million in 2004. Ø  It is a global coffee brand built upon a reputation for fine products and services. Ø  Starbucks was one of the Fortune Top 100 Companies to Work For in 2005. The company is a respected employer that values its workforce. Ø  The organization has strong ethical values and an ethical mission statement.	Ø  Starbucks has a reputation for new product development and creativity. However, they remain vulnerable to the possibility that their innovation may falter over time. Ø  The organization has a strong presence in the United States of America. It is often argued that they need to look for a portfolio of countries, in order to spread business risk. Ø  The organization is dependant on a main competitive advantage, the retail of coffee. This could make them slow to diversify into other sectors should the need arise.
Opportunities	Threats
Ø  Starbucks are very good at taking advantage of opportunties. Ø  In 2004 the company created a CD-burning service in their Santa Monica (California USA) cafe with Hewlett Packard, where customers create their own music CD. Ø  New products and services that can be retailed in their cafes, such as Fair Trade products. Ø  The company has the opportunity to expand its global operations. New markets for coffee such as India and the Pacific Rim nations are beginning to emerge. Ø  Co-branding with other manufacturers of food and drink, and brand franchising to manufacturers of other goods and services both have potential.	Ø  Who knows if the market for coffee will grow and stay in favour with customers, or whether another type of beverage or leisure activity will replace coffee in the future? Ø  Starbucks are exposed to rises in the cost of coffee and dairy products. Ø  Since its conception in Pike Place Market, Seattle in 1971, Starbucks' success has lead to the market entry of many competitors and copy cat brands that pose potential threats.