Swot Analysis

SWOT ANALYSIS
What it pays to be a business SWOT ?
 If you think your business could be doing

better, why not try a SWOT analysis?
 SWOT stands for Strengths, Weakness,
Opportunities and Threats
 By putting your firm under the magnifying glass
in such a fashion you may find the
way to grow your company
or increase your earnings.
Introduction To Swot analysis
 SWOT analysis is a strategic planning
method used to evaluate the Strengths,
Weaknesses, Opportunities, and Threats
involved in a business.
 It involves specifying the objective of the

business and identifying the internal and
external factors that are favorable and
unfavorable to achieve that objective.
 Technique is credited to Albert

Humphrey,
SWOT Defined
Positive Negative
Internal Strengths Weaknesses
External Opportuniti
Threats
es
What is SWOT Analysis ?
>It is a non-financial planning tool.
>It links the analysis in terms of advantages and
disadvantages; and the internal and external business
environment (in a matrix format).
>The Strengths and Weaknesses are defined by
measures such as market share, loyal customers, level
of customer satisfaction and product quality.
>Opportunities are new potential areas for business in
the future, such as new markets, or new conditions in
existing markets.
>Threats describe how the competition, new
technology, or other factors in the business
environment may affect the business's development.
> SWOT Analysis is a powerful
technique for understanding
your Strengths and
Weaknesses, and for looking at
the Opportunities and Threats
you face.
> For a business to Expand,

Diversify and Sustain in the
market SWOT analysis is must.
Matching and converting
 Another way of utilizing SWOT is matching
and converting.
 Matching is used to find competitive

advantages by matching the strengths to
opportunities.
 Converting is to apply conversion strategies to

convert weaknesses or threats into strengths or
opportunities.
 An example of conversion strategy is to find

new markets.
 If the threats or weaknesses cannot be

converted a company should try to minimize or
STRENGHTS:
good capabilities
capacities of producing good products
products
technologies
R&D efforts
human resources
demand from the client
amount of knowledge
technical skills
WEAKNESS:
product mass become obsolete
 technology has become obsolete
 key management power may not be there
 key man power may not be there
The point is not that the company is having

weaknesses and that the company should
closedown; the best part is that whether this
company is able to trace this weakness and take
the corrective measures or not.
OPPORTUNITIES:
a company can identify new products
 the company can go for new sectors
 the company can go for new geography
 new economy - the company can go and extend
their market
 company can take the advantage of the
changing lifestyle
 can go for the opportunities available because of
technology is changing
THREATS:
political threats
legislative threat
environmental threat
technology threat
from the partners
 joint venture alliances
 from the buyers
from the suppliers
from the key staff
How the company is taking the advantage - take
care of these threats and go for a counter actions
so that the threats are minimized.
Three stages of a SWOT analysis
1. Identify.
2. Draw conclusions.
3. Translate into strategic action.
Advantages of SWOT Analysis
Consolidate strengths
Minimises Weaknesses
Helps to Grab Opportunities
Minimises Threats
Facilitates Planning
Facilitates Alternative Choices
Helps to Innovate
Ensure Survival & Success
nirma chemicals ltd.
 Nirma was a basic detergent with no color,
design or sophistication on the pack the
product
 Was priced at around 35% of surf.

 Price, medium quality, distribution reach
and effective use of media.
 Market share grew from 0% in 1976 to

about 60% in 1987 in over a period of ten
years
 It has become the largest selling brand
and the success of nirma is due to affordable
price
 The title 'NIRMA GIRL' going round and
round on her feet makes a strong impact
STRENGTH :-
 Strong brand equity.
 Nirma is a Rs.17 billion umbrella brand offering

consumers a brand portfolio of products at multiple
price points in detergents, soaps & personal care
market.
 Market leadership in detergents and fabric wash.
 Second largest player in toilet soaps.
 Has wide distribution network.
 Its strategy of rural marketing is its unbeatable

strength.
WEAKNESSES:-
-high interest burden.
-less presence in premium segment.
-lacks global tie up
-and thus finds hard to tap export markets.
OPPURTUNITIES:-
-exports.
-acquisitions for strengthening its distribution tie-ups.
-entry into other categories like shampoos, toothpastes and
fabric whiteners.
THREATS:-
-MNCs are approaching Indian markets.
-emergence of small but strong regional players.
-brand name products have greater influence over it.
-Nirma has been able to niche for itself in the face of intense
MNC competition
NIRMA's achievement is surely something about which an

indian can be proud of brand that has lived up to its catch
line; BETTER PRODUCTS ,BETTER VALUE ,BETTER

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SWOT ANALYSIS

What it pays to be a business SWOT ?

 If you think your business could be doing

 It involves specifying the objective of the

 Technique is credited to Albert

Internal Strengths Weaknesses

> For a business to Expand,

 Matching is used to find competitive

 Converting is to apply conversion strategies to

 An example of conversion strategy is to find

 If the threats or weaknesses cannot be

The point is not that the company is having

 Was priced at around 35% of surf.

 Market share grew from 0% in 1976 to

 Nirma is a Rs.17 billion umbrella brand offering

 Market leadership in detergents and fabric wash.

 Second largest player in toilet soaps.

 Has wide distribution network.

 Its strategy of rural marketing is its unbeatable

NIRMA's achievement is surely something about which an

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