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BBP 20502 CREATIVITY AND INNOVATION




                                      SWOT
                                      PREPARED BY :
                          MUHAMMAD RAZIN BIN AHMAD
                          AB110011
OBJECTIVE
At The End Of The Presentation. Student
Should Know.

• HISTORY OF SWOT
• RULES OR REQUIREMENTS
• PROCESS AND DETAIL
  IMPLEMENTATION
• EXAMPLE OF SWOT ANALYSIS
• LIMITATIONS OF SWOT ANALYSIS
HISTORY
  ANALYTICAL METHOD



          WEAKNESSES                 THREATS

STRENGTHS             OPPORTUNITIES



• Stanford University’s Albert Humphrey led a
  research project in the 1960s-1970s
• Humphrey lead a research project
• Developed his Team Action Model (TAM)
• SWOT was to have originated from his
  ‘Stakeholders Concept and SWOT Analysis.’
INVENTOR

       HUMPHREY DEVISED THE SWOT
  ANALYSIS TECHNIQUE WHILE WORKING FOR
    THE STANFORD RESEARCH INSTITUTE



HIS WORK AT THE STANFORD RESEARCH INSTITUTE
 (NOW SRI INTERNATIONAL) PRODUCED A TEAM
 METHOD FOR PLANNING WHICH CREATED SOFT
                  ANALYSIS
RULES OR REQUIREMENTS
                           RULE 1
                       Carefully Specify
                     Sphere Of Each Swot-
                           analysis



   Rule 5                                              RULE 2
Avoid vast and                                  It Should Understand
 ambiguous                                      Distinctions Between
 statements                                      The SWOT Elements




         Rule 4                                RULE 3
                                       Strengths and weaknesses
 Be Impersonal And Use
                                       can be considered as those
 The Versatile Incoming                 only if they are perceived
      Information                         in this way by buyers
PROCESS AND DETAIL
 IMPLEMENTATION
•   What Are Your
    Advantages?

•   What Do You Do Well?

•   What Relevant Resources
                                STRENGTHS
    Do You Have Access To?

•   What Do Other People
    See As Your Strengths?
                              What Could You
                              Improve?
             WEAKNESSES
                              What Do You Do Badly?

                              What Should You Avoid?
• Where are the good
                                            opportunities in front of you?

                                          • What are the interesting trends
   OPPORTUNITIES                            you are aware of?




• What obstacles do you face?
• What is your competition doing?
• Are the required specifications for your job,           THREATS
  products or services changing?
• Is changing technology threatening your
  position?
• Do you have bad debt or cash-flow
  problems?
• Could any of your weaknesses seriously
  threaten your business?
EXAMPLE SWOT ANALYSIS (Samsung Galaxy S III vs Apple iPhone )
STRENGTHS:
•  We are able to give really good customer care, as the current small amount of
   work means we have plenty of time to devote to customers.

WEAKNESSES:
•  Our company has little market presence or reputation.
•  We have a small staff, with a shallow skills base in many areas.


OPPORTUNITIES:

•    Our business sector is expanding, with many future
     opportunities for success.
•    Local government wants to encourage local businesses.
THREATS:
•  Developments in technology may change this
   market beyond our ability to adapt.
•  A small change in the focus of a large competitor
   might wipe out any market position we achieve.
Example 2 (NIKON VS CANON)
    TOOLS
                            NIKON                                            CANON
    (SWOT)
                                                                Achieving the overwhelming No. 1 position
                    Cultivating new technologies in
                                                                 in all core businesses and expanding related
                     the field of industrial equipment.
                                                                 and peripheral businesses
  STRENGTH          Have brand presence globally
                                                                Have brand presence globally
                    Image capture high priority
                                                                Canon imaging systems is fast image
                    In USA Nikon is the leading
                                                                 transfer to computers with its USB-2.0
                     digital camera brand
                                                                 digital interface
                                                                Quality lens sharpness
                                                                Have been in producing for a long time
                                                                 good quality products


                                                           A need to establish global optimized production
               Have limited types of products.
                                                              system
               Camera lens of Nikon easy to               Camera lens of Canon easy infected to fungus
                  scratch                                  Lack of brand recognition – brand name only
 WEAKNESSES    A need to establish global                    associated with imaging products.
                                                           The brand name Canon is associated with cameras
                  optimized production system
                                                              only
TOOLS                          Nikon                                        Canon
   (SWOT)


                   focusing in developing its market in the      Aim to achieve the No. 1 position in

                    emerging markets                               the world in the current business

                   Creating presence in emerging markets:         domains
                                                                  Market attractive new products and
OPPORTUNITIES       India, China and Russia
                                                                   services
                   Growing demand of digital cameras
                                                                  Growing emerging markets
                   Working with mobile phone companies
                                                                  customers from all parts of the world
                    to incorporate Nikon camera on mobile
                    phones.




                   Mobile phones with embedded cameras           Tough global competition
                   Fast changing technology                      Fast changing technology
                   Counterfeit Nikon products                    Substitute products – such as
   THREAT
                   Disaster management – Japan earthquake         mobile embedded phones
                    2011
LIMITATIONS OF SWOT
                               ANALYSIS


 PRICE INCREASE
                                                 GOVERNMENT LEGISLATION
          INPUTS/
           RAW MATERIALS
                                                         Economic environment




INTERNAL LIMITATIONS MAY INCLUDE.

 Insufficient research and development
  facilities

 Faulty products due to poor quality control

 Poor industrial relations.
Advantages
    Advantages
One•ofitthe greatest advantages of SWOT analysis isare facing
         helps to summarize and clarify whatever opportunities and issues that it

helps to summarize and clarify whatever opportunities and
       a business or project.

issues are facing a business or project. For this reason, a
     For this reason, a SWOT analysis is often advantageous and can play a key
       role in how a business sets its objectives and develops strategies for achieving
SWOT goals.
        analysis is often advantageous and can play a key role
in how a business sets its objectives and develops strategies
for achieving goals
    Disadvantages

Disadvantages a business should consider what degrees of strengths and
    • For example,

In orderweaknesses it possesses be truly successful,competitors in order to a
         for a SWOT analysis to in comparison to it should extend beyond
simple list of strengths, weaknesses, opportunities A thorough SWOT analysis a
        determine how strong those strengths actually. and threats. For example,
business should consider an opportunity or threat's size and weaknesses it it is
        should also look at what degrees of strengths in order to see how possesses
in comparison to competitors incompany's determine how and weaknesses.
        related    with    the    order to strengths strong those strengths
actually are. A thorough SWOT analysis should also look at an opportunity or
threat's size in order to see how it is related with the company's strengths and
weaknesses.
SWOT ANYLISIS

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SWOT ANYLISIS

  • 1. BBP 20502 CREATIVITY AND INNOVATION SWOT PREPARED BY : MUHAMMAD RAZIN BIN AHMAD AB110011
  • 2. OBJECTIVE At The End Of The Presentation. Student Should Know. • HISTORY OF SWOT • RULES OR REQUIREMENTS • PROCESS AND DETAIL IMPLEMENTATION • EXAMPLE OF SWOT ANALYSIS • LIMITATIONS OF SWOT ANALYSIS
  • 3. HISTORY ANALYTICAL METHOD WEAKNESSES THREATS STRENGTHS OPPORTUNITIES • Stanford University’s Albert Humphrey led a research project in the 1960s-1970s • Humphrey lead a research project • Developed his Team Action Model (TAM) • SWOT was to have originated from his ‘Stakeholders Concept and SWOT Analysis.’
  • 4. INVENTOR HUMPHREY DEVISED THE SWOT ANALYSIS TECHNIQUE WHILE WORKING FOR THE STANFORD RESEARCH INSTITUTE HIS WORK AT THE STANFORD RESEARCH INSTITUTE (NOW SRI INTERNATIONAL) PRODUCED A TEAM METHOD FOR PLANNING WHICH CREATED SOFT ANALYSIS
  • 5. RULES OR REQUIREMENTS RULE 1 Carefully Specify Sphere Of Each Swot- analysis Rule 5 RULE 2 Avoid vast and It Should Understand ambiguous Distinctions Between statements The SWOT Elements Rule 4 RULE 3 Strengths and weaknesses Be Impersonal And Use can be considered as those The Versatile Incoming only if they are perceived Information in this way by buyers
  • 6. PROCESS AND DETAIL IMPLEMENTATION
  • 7. What Are Your Advantages? • What Do You Do Well? • What Relevant Resources STRENGTHS Do You Have Access To? • What Do Other People See As Your Strengths? What Could You Improve? WEAKNESSES What Do You Do Badly? What Should You Avoid?
  • 8. • Where are the good opportunities in front of you? • What are the interesting trends OPPORTUNITIES you are aware of? • What obstacles do you face? • What is your competition doing? • Are the required specifications for your job, THREATS products or services changing? • Is changing technology threatening your position? • Do you have bad debt or cash-flow problems? • Could any of your weaknesses seriously threaten your business?
  • 9. EXAMPLE SWOT ANALYSIS (Samsung Galaxy S III vs Apple iPhone )
  • 10. STRENGTHS: • We are able to give really good customer care, as the current small amount of work means we have plenty of time to devote to customers. WEAKNESSES: • Our company has little market presence or reputation. • We have a small staff, with a shallow skills base in many areas. OPPORTUNITIES: • Our business sector is expanding, with many future opportunities for success. • Local government wants to encourage local businesses. THREATS: • Developments in technology may change this market beyond our ability to adapt. • A small change in the focus of a large competitor might wipe out any market position we achieve.
  • 11.
  • 12. Example 2 (NIKON VS CANON) TOOLS NIKON CANON (SWOT)  Achieving the overwhelming No. 1 position  Cultivating new technologies in in all core businesses and expanding related the field of industrial equipment. and peripheral businesses STRENGTH  Have brand presence globally  Have brand presence globally  Image capture high priority  Canon imaging systems is fast image  In USA Nikon is the leading transfer to computers with its USB-2.0 digital camera brand digital interface  Quality lens sharpness  Have been in producing for a long time good quality products  A need to establish global optimized production  Have limited types of products. system  Camera lens of Nikon easy to  Camera lens of Canon easy infected to fungus scratch  Lack of brand recognition – brand name only WEAKNESSES  A need to establish global associated with imaging products.  The brand name Canon is associated with cameras optimized production system only
  • 13. TOOLS Nikon Canon (SWOT)  focusing in developing its market in the  Aim to achieve the No. 1 position in emerging markets the world in the current business  Creating presence in emerging markets: domains  Market attractive new products and OPPORTUNITIES India, China and Russia services  Growing demand of digital cameras  Growing emerging markets  Working with mobile phone companies  customers from all parts of the world to incorporate Nikon camera on mobile phones.  Mobile phones with embedded cameras  Tough global competition  Fast changing technology  Fast changing technology  Counterfeit Nikon products  Substitute products – such as THREAT  Disaster management – Japan earthquake mobile embedded phones 2011
  • 14. LIMITATIONS OF SWOT ANALYSIS  PRICE INCREASE  GOVERNMENT LEGISLATION  INPUTS/ RAW MATERIALS  Economic environment INTERNAL LIMITATIONS MAY INCLUDE.  Insufficient research and development facilities  Faulty products due to poor quality control  Poor industrial relations.
  • 15. Advantages Advantages One•ofitthe greatest advantages of SWOT analysis isare facing helps to summarize and clarify whatever opportunities and issues that it helps to summarize and clarify whatever opportunities and a business or project. issues are facing a business or project. For this reason, a  For this reason, a SWOT analysis is often advantageous and can play a key role in how a business sets its objectives and develops strategies for achieving SWOT goals. analysis is often advantageous and can play a key role in how a business sets its objectives and develops strategies for achieving goals Disadvantages Disadvantages a business should consider what degrees of strengths and • For example, In orderweaknesses it possesses be truly successful,competitors in order to a for a SWOT analysis to in comparison to it should extend beyond simple list of strengths, weaknesses, opportunities A thorough SWOT analysis a determine how strong those strengths actually. and threats. For example, business should consider an opportunity or threat's size and weaknesses it it is should also look at what degrees of strengths in order to see how possesses in comparison to competitors incompany's determine how and weaknesses. related with the order to strengths strong those strengths actually are. A thorough SWOT analysis should also look at an opportunity or threat's size in order to see how it is related with the company's strengths and weaknesses.