Читать книгу The Fox Trilogy - Chantell Ilbury - Страница 14

SWOT – a nuts and bolts explanation

Оглавление

Readers may well ask where SWOT analysis (strengths, weaknesses, opportunities and threats) fits into our matrix. The answer is that the matrix now changes the sequence to OTSW: opportunities and threats are outside our control whereas we can do something about our strengths and weaknesses. Opportunities and threats therefore belong to the first two quadrants on the lower deck, and strengths and weaknesses to the last two quadrants on the upper deck.

Let us consider the example of a proud owner of a hardware store in a small country town. We’ll call him John. The opportunity may well be that the only other hardware store in town is about to close because the owner has made it known that he is going to retire. If John is certain about this information, it is a rule of the game. If it is a rumour it is a key uncertainty. Either way, it offers John an opportunity to expand his business. The converse is that John has heard that a big supermarket chain is intending to establish a new branch in the town. It will have a hardware section which will offer considerable discounts and a variety of goods to customers. That is a threat. Again, depending on the credibility of the source of this news, its appropriate place is in the first or the second quadrant of the matrix.

John now considers his strengths and weaknesses and his options in light of them. One of his strengths is customer loyalty because his shop has been around a long time and he likes to chat to his customers; and they like to chat to him. His option in the “opportunity” scenario just outlined is to persuade these customers to speak to those who have frequented the other shop and tell them what a decent deal they can get at his shop. Word of mouth may suffice. Another option may be to drop leaflets in their letter boxes. John also realises that one of his weaknesses is that he doesn’t carry some of the brand names that the other shop does. His option is to expand his range of hardware and correct this situation or stick to his traditional lines and try and convince his new customers to switch brands.

In the “threat” scenario of a retail giant arriving in town, John may opt to build on his strong customer loyalty by making his shop even more welcoming – by putting say a little coffee stall inside. If he pursues this strategy, he will be going out of his way to differentiate himself from the impersonal surroundings of the supermarket. However, John may decide to close up shop because, in analysing his weaknesses such as comparatively higher prices and a narrower range, he realises that he’s too vulnerable and he should quit while the going is good. Fishing in the local dam becomes an overwhelmingly attractive alternative.

Reversing the order of SWOT analysis makes it no less effective and, as the example shows, it can form an integral part of our matrix.

The Fox Trilogy

Подняться наверх