SWOT analysis is an important part of strategic planning process. Environmental factors (internal and external)
The elements of SWOT analysis are extracted from the environmental factors (both internal and external). The marketers conduct SWOT analysis, by which it evaluates the company’s overall strengths(S), weaknesses (W), opportunities (O) and threats (T); strengths and weaknesses are internal factors whereas opportunities and threats are external factors.
http://www.businessteacher.org.uk/wp-content/swot-analysis-image.png
In order to illustrate the practicality of SWOT analysis in marketing I’ve taken the example of nestle dairy division, known as LC1 division
Nestle’s LC1 division has many strengths. Their first is that they have a great CEO, Peter Brabeck. Brabeck emphasizes internal growth, meaning he wants to achieve higher volumes by renovating existing products, and innovating new products. His explanation of renovation is that “to just keep pace in the industry, you need to change at least as fast as consumer expectations.”(Hitt, 2005) And his explanation of innovation is “to maintain a leadership position, you also need to leapfrog, to move faster and go beyond what consumers will tell you.” Brabeck has led Nestle into a position to better achieve the internal growth targets with his.
Another strength that Nestle has is that they are low cost operators. This allows them to not only beat the competition by producing low cost products, but by also edging ahead with low operating costs.
The strong and extensive distribution is strength of Nestle. (for instance, in Pakistan, Nestle dairy products are easily available at almost 90% of the stores and markets).
http://articles.castelarhost.com/nestle_swot_analysis.htm
the main weakness of LC1 division came out in france. The CEO thought that they will be as successful in France, as they are in other parts of the world. But when their competitor Danone (already existing one), came in the market (France) with a health-based yogurt, their profit graph led down.
One opportunity that Nestle has recently availed in Pakistan is to come to the health based products, as they did with Nestle Milk Pack by vitalizing and promoting it to have more nutrition (Iron, Vitamin and Vitamin C), to attract the specific market segment.
Another threat to Nestle is that there is intense competition in the United States yogurt market. There the General Mills are leading the dairy market and thus are the strong competitors of Nestle.
The elements of SWOT analysis are extracted from the environmental factors (both internal and external). The marketers conduct SWOT analysis, by which it evaluates the company’s overall strengths(S), weaknesses (W), opportunities (O) and threats (T); strengths and weaknesses are internal factors whereas opportunities and threats are external factors.
http://www.businessteacher.org.uk/wp-content/swot-analysis-image.png
In order to illustrate the practicality of SWOT analysis in marketing I’ve taken the example of nestle dairy division, known as LC1 division
Nestle’s LC1 division has many strengths. Their first is that they have a great CEO, Peter Brabeck. Brabeck emphasizes internal growth, meaning he wants to achieve higher volumes by renovating existing products, and innovating new products. His explanation of renovation is that “to just keep pace in the industry, you need to change at least as fast as consumer expectations.”(Hitt, 2005) And his explanation of innovation is “to maintain a leadership position, you also need to leapfrog, to move faster and go beyond what consumers will tell you.” Brabeck has led Nestle into a position to better achieve the internal growth targets with his.
Another strength that Nestle has is that they are low cost operators. This allows them to not only beat the competition by producing low cost products, but by also edging ahead with low operating costs.
The strong and extensive distribution is strength of Nestle. (for instance, in Pakistan, Nestle dairy products are easily available at almost 90% of the stores and markets).
http://articles.castelarhost.com/nestle_swot_analysis.htm
the main weakness of LC1 division came out in france. The CEO thought that they will be as successful in France, as they are in other parts of the world. But when their competitor Danone (already existing one), came in the market (France) with a health-based yogurt, their profit graph led down.
One opportunity that Nestle has recently availed in Pakistan is to come to the health based products, as they did with Nestle Milk Pack by vitalizing and promoting it to have more nutrition (Iron, Vitamin and Vitamin C), to attract the specific market segment.
Another threat to Nestle is that there is intense competition in the United States yogurt market. There the General Mills are leading the dairy market and thus are the strong competitors of Nestle.
1 comment:
Summayah you have explained Swot Analysis very well. The Question is How SWOT Analysis will Effect the strategic planning process of Company?What about its Marketing Strategy what will they do?
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