SWOT ANALYSIS

Melody Joy Austria

BSCE - 2


What is SWOT ANALYSIS?

-SWOT ANALYSIS studies the

financial resources, physical facilities,
management capabilities, the
market, production process,
information system, sources of
supply and social environment.
-SWOT ANALYSIS stands for
STRENGTHS, WEAKNESSES,
OPPORTUNITIES and THREAT.

INDICATORS OF SWOT:

STRENGTH of a product or services

-Cheap and abundant raw materials
-Sufficient funds
-Availability f technology
-Presence of skilled workers
-Management and technical expertise of the
entrepreneur
-Good quality/services
-Ease of production
-Small capital

INDICATORS OF SWOT:
WEAKNESSES of a product or
services
-High price
-poor quality/service
-Weak management
-Lack of skilled worker
-Irregular supply
-Unattractive design
-High costs of production

INDICATORS OF SWOT:
OPPORTUNITIES of a product or
service
-Big demand for the product/service
-Favorable government
policy/support
-Scarcity of the product/services
-Poor quality of existing product
-Absence of product/service
-Possibilities of god profits

INDICATORS OF SWOT:

THREATS of a product or services

-Shortage of raw materials at a given time
-Entry of many competitors
-Increasing costs f production
-Expectation of unfavorable government
laws, such as taxes
-Deteriorating peace and order
-Emergence of unfair demands of workers
through labor union activities

LINKAGES OF RESOURCES
Backward and Forward Linkages
Enterprises which have established
a strong growth future can increase
their efficiency or profitability
through backward and forward
integration.

 BACKWARD INTEGRATION is the

ownership or control of the inputs of
production by the enterprise.
FORWARD INTEGRATION is the
ownership or control of the marketing
system by the enterprise.

PRODUCT LIFE CYCLE

Introduction
Consumer awareness and acceptance of the
product are low. However, sales gradually
increase due to promotion and marketing
activities. But at the start, costs of
development and marketing are high. This
makes profit low or even incurs loss. There are
relatively few competitors, and the price is
usually high. Buyers are individuals who want
to be the first in the community to own the
product.

PRODUCT LIFE CYCLE

Growth
Sales rise rapidly as the product becomes
popular. Due to the competition and
lower average cost of production prices
fail. However, profits fo the firm and
industry increase. To meet the growing
demand, product distribution is
expanded. Promotion still plays a vital
role in the marketing of the product.

PRODUCT LIFE CYCLE

Maturity
Sales are still rising at the
beginning of this stage. But the rate
of increase has declined. At the later
partner part, the sales curve reaches
its peak while profits begin to fall.
Price competition increases which
forces inefficient competition to get
out from the industry.

PRODUCT LIFE CYCLE

Decline
There is a sharp fall in sales
volume while profit curve becomes
almost flat or horizontal. There is
also a decline in the number of
competitors. The only survivors are
those who specialize in the
marketing of the product. Once the
product is no longer profitable, it is
eliminated from the market.