Professional Documents
Culture Documents
Delta Air Lines Inc., chose to invest in a multibillion-dollar customer service system that addresses
the flight delay problems experienced by 20% of its passengers. Although some companies might
think the move was excessive considering 80% of customers have no problems, Delta believed
customer service was an important area for increasing market share and that competitors could
pose a threat if Delta didn't address the problem.
Another example is Dell Computer Corp., which is a great example of how an IT company can use
a SWOT analysis to carve out a strong business strategy, according to Glazer.
Dell recognized that its strength was selling directly to consumers and keeping its costs lower than
those of other hardware vendors.
As for weaknesses, the company acknowledged that it lacked solid dealer relationships.
Identifying opportunities was an easier task. Dell looked at the marketplace and saw that customers
increasingly valued convenience and one-stop shopping and that they knew what they wanted to
purchase. Dell also saw the Internet as a powerful marketing tool.
On the threats side, Dell realized that competitors like IBM and Compaq Computer Corp. had
stronger brand names, which put Dell in a weaker position with dealers.
Dell put together a business strategy that included mass customization and just-in-time
manufacturing (letting customers design their own computers and custom-building systems). Dell
also stuck with its direct sales plan and offered sales on the Internet.
Clarity in strategy works. Fuzzy strategies fail. Most strategies
fail because they don't have a clear direction
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SWOT Analysis
Internal and External Analysis
To get a better look at the big picture, consider both internal and external forces when
uncovering opportunities and threats. What better source than the group of
participants composed of stakeholders, staff,
Internal Analysis:
volunteers, and/or community residents?
Examine the capabilities of your organization. This can be done by analyzing your
organization's strengths and weaknesses.
External Analysis:
Look at the main points in the environmental analysis, and identify those points that
pose opportunities for your organization, and those that pose threats or obstacles to
performance.
Key points: Once the SWOT analysis has been completed, mark each point with:
9 Things that MUST be addressed immediately.
9 Things that can be handled now.
9 Things that should be researched further.
9 Things that should be planned for the future.
A SWOT session is a participatory group process which
produces output valuable for annual planning
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SWOT Analysis
The Basics (Cont.)
9 Now that each point has been prioritized, set an action point for each and assign it to a
person, add a deadline.
9 Although the SWOT analysis will assist in identifying issues, the action plan will ensure
that something is done about each one. With complicated issues, a further
brainstorming session might be done to analyze it further & decide what action to take.
9 The SWOT analysis results should be reviewed every few months to determine if
anything has changed and what has been achieved.
9 The "Brainstorm" is best used when setting up a new project or organization, works
best in smaller groups than a SWOT session, and can be effectively used in the
transformation process when the participants are a smaller group of managers.
9 The observations generated by the participants should not include any major surprises
to the organizers and coordinators of the program and the administrators of the
organization.
9 It can be used in a conference where the participants come from different locations
and organizations.
4. Then invest 75% or more of your business aggregate time, resources and
energies in that key thing that you do best and generates the most profits.
5. Tell the truth and the good stories about your business to your customers
and markets. In appealing to all types of markets that you do virtually anything,
your messages usually become mush, you lose credibility, you lose attention
(despite any level of marketing funding)—you create your own marketing and sales
nightmare. All things to all people is not a position. It is a death sentence.
6. Grow organically for the foreseeable future. Sure there are business cases to
consider to purchase highly complementary or directly competitive businesses, but
those are the exceptions versus the rules. Try it the old fashioned way for a while.
7. Execute, execute, execute. This is the bane of BADD executives—who would
rather go after that next windmill, do that next deal, and look busy--versus
executing, which is a lot harder work.
Get input from at least 3-5 key people who have varying views & opinions
© Copyright 2006 - Advanced Integrated Technologies Group, Inc., All rights reserved.
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SWOT Analysis
Tricks
9 Minimize the “group grope” and meeting stuff while developing your SWOT — meet
to discuss the SWOT, modify it as necessary, and develop one or more action steps.
9 Ask the hard questions and challenge all of your basic assumptions — none are
sacred.
9 Be objectively critical but also don’t undersell yourself.
9 Get the key facts but don’t get paralyzed with analysis and fact-finding. You may
need to do some other fact-finding and analysis before implementing your
recommendations, but don’t get bogged down at the micro-level of detail.
9 Keep “personal” issues off the list — and handle those separately.
9 This is important, especially if there are to be major changes in the organization and
the content of the program; all members should feel comfortable that this is a group
process, not dominated by factions or individuals.
“Its what you learn after you know it all that counts!”
- John Wooden
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SWOT Analysis
Brainstorming
Brainstorming is a term used to describe a creative thinking session. The aim is to
gather as many ideas and possible solutions to a problem as possible. The results will
depend entirely on the reason for the brainstorming session and the group of people
participating.
Exploring Ideas:
Start with the first idea and ask "If we do this, what results/problems can we expect?"
Write each problem or result on the whiteboard. If further information is required, then
note it and assign it to a person for further investigation, determine a deadline.
Next ask "To implement this, what do we need to do?" write all tasks on the board.
It helps to split the board into three sections: Problems, Results, Tasks.
Once you have completed the process for each idea, then write an action plan and a
follow up session.
The aim is to get ideas and viewpoints from various angles and to
explore each one further
© Copyright 2006 - Advanced Integrated Technologies Group, Inc., All rights reserved.
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SWOT Analysis
Brainstorming Preparation
Determine the group of people that should attend, if possible include at least one
person from each department and all the possible stakeholders and decision makers.
The group should not be limited to upper management, sometimes the best ideas
come from the workers.
A Leader should be appointed to manage the process and maintain control of the
session. Appoint a person to make notes and gather the information. Determine the
session duration and issue invitations.
The room should be set out so that it has a relaxed atmosphere, preferably the
seating should be in a circular fashion or gathered around a table, depending on the
size of the group. Encourage people to walk around and feel relaxed. Provide a
whiteboard, note paper, pens, coffee and anything else that may encourage a relaxed
session.
The action plan should include a summary of each idea, a list of further investigation
requirements, who they are assigned to and deadlines.
If an idea can be implemented immediately, then it should include the tasks, who they
are assigned to and deadlines.
Brainstorming sessions are excellent tools to solve problems and determine further
opportunities. A brainstorming session can be done on an individual basis successfully,
however a group session will allow for different viewpoints from all areas.
9 What are your products and services (that you have actually have available to sell)?
9 What are you selling at what prices?
9 What is the rationale(s) for your current packaging/pricing?
9 Could you price your products/services differently (and be more successful)?
9 What business problems do your product/services address?
9 How do your products/services address those specific problems?
9 What makes your products/services different, better than the competition?
9 What are the 2008 growth trends per product/service (e.g. new customers, revenue or
profit per customer, etc)?
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SWOT Analysis
Marketing Questions
9 What marketing vehicles have worked the best in 2002 and why?
9 Which ones have not worked and why?
9 How coordinated are your marketing initiatives?
9 Are you getting people’s attention with your marketing messages?
9 Who, specifically, are you attempting to reach?
9 What level of frequency are you using to get your messages out?
9 Do you apply marketing resources on a regular ongoing basis?
9 What % of your revenues did you devote to marketing in 2002?
9 Has that been enough, too much? Why?
9 What limitations, if any, have you put on your marketing investment in 2002?
9 What other marketing initiatives have you considered trying?
9 Do you monitor your marketing results? How?
9 Do you have a marketing plan?
9 How often do you adjust your plan?
9 How is your marketing department/function organized?
9 How focused is your company on marketing in comparison to Sales?
9 How effectively do your Sales people put Marketing leads to work?
You can also apply SWOT analysis to your competitors
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SWOT Analysis
Positioning
When you sit next to a stranger on an airplane and he or she asks what you do/your
company does what do you say? Do they get it? What else do they ask? What do they
NOT understand?
Line up your most current marketing and sales materials/vehicles and carefully review
and critique the following (as applicable):
9 Basic collaterals (letterhead, business 9 Tradeshow booth
cards, portfolio, etc) 9 Other promotional events/items
9 Web site 9 Telemarketing (scripts)
9 Search engine optimization 9 Other media: TV, radio, billboard, etc
9 Brochures and print materials/ mailers etc 9 Seminar programs
9 Print advertising 9 Press Releases and other PR
9 Email campaigns campaigns
9 Proposals 9 Marketing plan
9 PP Sales presentations 9 Media plan
9 Demos 9 Other communication vehicles
© Copyright 2006 - Advanced Integrated Technologies Group, Inc., All rights reserved.
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SWOT Analysis
Positioning (Cont.)
9 Then ask the following questions:
9 Are the messages and information (and graphical appearance) across ALL of those
materials/vehicles: current, accurate (true), consistent, clear, free of jargon,
illustrative (vs. just descriptive) and unique?
9 How well do your messages, themselves, differentiate your products/services and
overall business?
9 Can virtually anyone understand your top-line messages and what value/benefits
that your products/services provide (that is what business problems they solve)?
9 Who coordinates/how do you continually coordinates ALL messages regarding your
business and your products and services?
9 How often do you change your messages as necessary?
9 How well do your messages match your actual products/services?
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