In this module SLP2, conduct SWOT analysis for your charge based on the situation analysis in SLP1. This is the second step of this cumulative research project. Be sure to revise the sections in SLP1 and include them in this paper following the marketing plan outline provided above. SWOT Analysis A thorough situation analysis in the Module 1 SLP is the foundation for a SWOT analysis. Develop statements of the company's internal strengths and weaknesses, and external opportunities and threats. If there is any question as to whether a fact or issue is external (these lead to opportunity and threat statements) or internal (these lead to strength and weakness statements), ask this key question, \"Would this issue exist if the company did not exist?\" If the answer is yes, then the issue should be classified as external. Note: Remember that alternative marketing strategies and tactics are not opportunities. Opportunities and threats exist independently of the firm. Strategies and tactics are what the firm intends to do about its opportunities and threats relative to its own strengths and weaknesses. The SWOT will play a critical role (along with an in-depth understanding of target market needs/preferences and competition) in the development of goals, objectives, and marketing strategies and programs. Key strengths need to be matched to opportunities and converted to capabilities that help serve customer needs better and lead to competitive advantage. Goals, strategies, and program ideas stem from an attempt to convert weaknesses into strengths and threats into opportunities. Some alternatives will also come from thinking about how to minimize the repercussions of weaknesses and threats that cannot be converted, and/or how to avoid them altogether. Follow the instructions below to identify strengths, weakness, opportunities, and threats. A. Strengths and Weaknesses (Internal) Think about internal conditions; those things that management has some control over that are relevant to future success and effectiveness. The task is to identify internal strengths, which must be taken into consideration as management plans for the future. Remember, a strength is any internal characteristic that improves effectiveness. Look for factors that help the company improve positioning in the marketplace, enhance financial performance, and most importantly, fight off threats and take advantage of opportunities in the external environment. A weakness is any internal characteristic that limits effectiveness, performance, and the ability to accomplish objectives, meet threats, and take advantage of opportunities. It is also important to point out that a particular fact about the internal environment may have a weakness and a strength dimension. For example, we might say that the company's technical skills are of the highest quality and this is a strength, but since these skills are possessed by only a few employees, it is also a weakness in that we need more people with such skills and would be hurt if a few key people left the company. Using the following 16 internal factors to stimulate your thinking, list all of the company strengths you can think of for each category. Then review the same list of 16 internal factors and develop a list of company weaknesses. (You may not have access to all of the information below, but try your best to identify at least five of them for your project). Internal Factors The following categories of internal factors are commonly used to generate a list of specific company strengths and weaknesses. This list is to be used to stimulate your thinking about internal strengths and weaknesses. 1. Management leadership/capabilities. 2. Organization structure and management systems. 3. Facilities, equipment, and materials. 4. Technical skills and expertise. 5. Dedication, morale, and motivation of employees. 6. Capacity to meet demandproduction capacity, including excess available for growing demand. 7. Marketing effectiveness/efficiencyadvertising, personal selling, public relations, products/services, prices, distribution, marketing research and planning, customer service, warranties, sales support, sales promotion, etc. 8. Ability to deliver what the market wants. 9. Ability to deliver in a timely manner. 10. Image and reputation as perceived by customers and within the industry. 11. Customer (and potential customer) perceptionlikes, dislikes, and perceptions of service, quality, etc. 12. Financial performancesales, market share, customer satisfaction/loyalty, and profits. 13. Financial situationavailability of capital, internal funding, financial stability, etc. 14. Cost of operationshigh cost vs. low cost, rising costs, costs compared to competition (manufacturing, distribution, etc.) 15. Geographic location(s). 16. Other relevant competencies/resources that translate into strengths that have not been mentioned. Also, any weaknesses we have missed related to a lack of competencies and/or resources that are needed in the future. B. Opportunities and Threats (External) Think about the most significant trends in the organization's external environment that will have an impact on future success. The challenge is to identify relevant opportunities and threats outside management's control that must be taken into consideration during the planning process. You will need to list and describe the factors/issues forming industry trends that may influence future efforts one way or the other, either as a positive force (opportunity) or as a barrier (threat). An opportunity is the result of some trend or fact in the external environment that represents a marketplace and/or financial performance advantage. It may indicate a new direction, product or service, and/or resource requirement for the company. It represents an attractive arena for marketing action in which the company would enjoy a competitive advantage. A threat is the result of some trend or fact in the external environment that represents an area of concern for management. It represents a challenge posed by an unfavorable trend or development that would lead, in the absence of effective marketing action, to the erosion of the company's or industry's position. A threat may: 1. Directly or indirectly affect the business. 2. Indicate an area to be avoided. 3. Demand a strategic response. 4. Represent an opportunity if responded to properly. It should be pointed out that a particular trend in the external environment (for example, mergers/acquisitions, technological advancements, and/or a recent change in the way competitors operate and what they are offering the market) can imply both a threat and an opportunity. Sometimes in strategic planning we say that behind each threat (or problem) lies an opportunity. Or an optimist in strategic planning will look at threats and try to turn them into opportunities. Thus, it should be remembered that if management can adapt properly to a threat (such as mergers and acquisitions), this trend may be viewed as an opportunity as well as a threat. Review the following 13 categories of external environmental trend factors and list the trends or issues that are relevant to the company and industry. Then translate each factor identified into a specific opportunity and/or threat statement. That is, what are the implications of each environmental trend or issue outside the company in terms of specific opportunities and/or threats? (You may not have access to all the information below, but try your best to identify at least five of them for your project). External Environmental Trend Factors The following categories of external environmental trend factors are commonly considered in the planning process. They are used to develop a specific list of company opportunities and threats. This list is to be used to stimulate your thinking about opportunities and threats in the external environment. 1. Mergers and acquisitions(e.g., among customers, potential customers, suppliers, competitors, and/or within the industry). 2. Competitive trendsspecific competitive strategies and programs, or recent changes such as lower prices or new products. 3. Economic trendsforces and changes in the economy such as inflation, interest rates, recession. 4. Technological trendsnew technological innovations. 5. Technical requirementswithin the industry. 6. Market/industry trendssize of firm related to industry, financial performance of the industry compared with the firm, size/growth rate of current and future potential market characteristics and trends in markets and industry. 7. Customer and potential customer attitudespreferences, expectations, problems, wants, needs, etc. What changes are anticipated? 8. Legal trendsgovernment regulations and policies. 9. Societal/lifestyle trendschanges in people's values, attitudes, and activities. 10. New products/serviceson the market. 11. Supply sources. 12. Declining or increasing productivityin the industry or economy. 13. Other industry trends not previous mentioned that are relevant to the future. Based on the detailed discussion of strengths, weaknesses, opportunities, and threats, use SWOT tables for the SWOT analysis. In other words, first state the facts based on your research, and then summarize the findings in a SWOT table. Note the examples below and follow the \"best statements\" to describe the strengths, weaknesses, opportunities and threats for your company and charge in SWOT table(s). Not Useful Statement Better Statement Customer loyalty/brand image We have a strong brand image. Our global market share has grown We have a 42% from 25% to 42% over the past four market share and years. Independent surveys show our brand is known our quality and image is rated No. 1 worldwide. in our industry in the U.S. and Asia and No. 2 in Europe behind XYZ. Sales/ Our Our product is Examples Internal Strengths Best Statement Our extensive distribution network Distribution Internal Weaknesses provides product within 10 miles of distribution is available in more the home or work location of 95% of the best in the locations than our our target market. Our competitors industry. competitors'. only achieve this level for 40%-65% of the market. Product cost Our labor costs average $40/unit (in Our major Detroit) vs. $12/unit for our competitors, ABC competitors (in China). With product and XYZ, produce in market prices of $120/unit we China for less cost. barely break even. Product Life Our costs are high. We have product problems. We can Alternative External leverage new Distribution Opportunities distribution College Campus channels. Our product life is less than the competition. Typically, our product fails after one year. Our major competitor's product lasts 2-3 years. Customers are willing to pay 50% more for our competitors' product. Internet could be used to increase sales to college students. Direct Sales (via campus Intranet) and on-campus kiosks would more than double our coverage of our targeted Generation Y market. Europe and Asia Strategic alliances with ABC in Export Growth Export markets provide good Europe and XYZ in Asia would allow via Strategic can help us opportunities to us to double international sales in Alliances grow. grow by partnering. two years. Substitutes In six months, ABC's sugar-free ABC's new sugarSubstitutes are sweetener has achieved 20% market free sweetener may a threat. share. Its share is expected to grow hurt us. to 40% by next year. Mergers External Threats Competitor Competitor XYZ is If XYZ acquires ABC, it will dominate mergers could expected to acquire the distribution network and limit hurt us. ABC. our access. SLP Assignment Expectations Use the following outline to organize your paper. Note that the letters \"a, b, c...\" and the numbers \"i, ii, iii, iv...\" below are used to show the major issues you need to include in your paper, but should not be used to format your paper. III. SWOT Analysis (3-6 pages) 1. Strengths and Weaknesses (Internal) i. Strengths ii. Weaknesses 2. Opportunities and Threats (External) i. Opportunities ii. Threats 3. SWOT Table Note: Use double-spaced, black Verdana or Times Roman font in 12 pt. type size. Include a title page and references. Revise your Module 1 SLP based on the feedback from your professor and your additional research, and include the Module 1 SLP in the Module 2 SLP. Explain clearly and logically the facts about your company and charge, and use the required reading to support your positions on the issues. Do not repeat or quote definitions. Your use of the required reading to support your opinions (that is, contentions or positions) should demonstrate that you understand the concepts presented. Paraphrase the facts using your own words and ideas, employing quotes sparingly. Quotes, if absolutely necessary, should rarely exceed five words. Academic papers at the master's level should include citations and references. Look at different sources, especially credible and reputable resources such as The New York Times, The Wall Street Journal, Businessweek, and The Economist, to find the information for your paper. Also use Trident University's online library databases such as ProQuest and EBSCO to find the information for your project. Your discussion on each topic should be a synthesis of the different sources. Taking shortcuts on the number and quality of your sources will result in a poor-quality marketing plan that will be of no use to your client. Running Head: SITUATION ANALYSIS FOR SAMSUNG COMPANY Situation Analysis for Samsung Company Name of Student Institution affiliation SITUATION ANALYSIS FOR SAMSUNG COMPANY 2 Samsung Company is one of the top leading electronic company across the world. Samsung was formed in 1938 in Korea offering export services to Korean fish and cereals. Over the past, the company grew to be the leading electronic shop with wide variety of electronic products in various shops. The company utilizes the new technology to invent new electronic devices that suit the various taste and preference. Samsung has gained the market share and diversifies their risk through venturing across the world. The company has more than 70 affiliates selling the company products to various companies as partners to Samsung. Samsung focuses on providing innovative products that match the customer specification using the modern technology. The company is people oriented, it focus on customer satisfaction, and creating a better society for the future generation. The company comprises of the board of directors who work independently from the shareholders of the company to deliver various management services. The company employees are dedicated to providing customer-based services and placing the company interest first (Chang, 2011). Samsung first partner was Yahoo, which acted like a flat form for online sales and advertisement. The partnership is seen as a milestone in the company sales since the customers were made aware of the products of Samsung across the globe. The company undertakes various environmental programs to promote a safe and sound environment for the benefit of the society. The Samsung products free from carbon compound to reduce the amount of green gas within the environment. The company practice the art of recycling waste products to produce new products into the market. The company has various programs that focus on saving the natural energy through various initiatives. The company is focusing on a new tablet into the market called Galaxy MiniS. The target market is the millennium generation who use the latest technology. The tablet comprises additional features and more of a computer, unlike the old Samsung tablets. SITUATION ANALYSIS FOR SAMSUNG COMPANY 3 Galaxy miniS is more like the iPad air made by the apple company. The company introduces the new tablet to be the top best tablet producing company. The tablet has improved operating system, improvement in productivity and with slim size shape. The additional features allow the user to multi-task just like how PC works. The new tablets have special features for encryption; this will protect the devices from unauthorized individuals from accessing. Retail shops increase the number of sales per day. This sale is due to the growth of retail shops and goodwill of the company. Samsung utilizes the media by launching a scheme of advisement in the media that is kept posted for the entire promotional period. The marketing team invites some celebrities during the launch campaign to boost the image of the product and attract the young stars in buying the products. Various celebrated persons around the globe are made ambassadors of tablets. The company uses a scheming policy to charge prices of the devices. The new tablets are expected to lead to high demand, hence the high price (Satterfield, 2014). The old tablets prices are reduced to encourage more sales of the products as well. However, Samsung might opt for competitive prices to match those of the competitors, but this strategy is rare since Samsung has a higher reputation as compared to other companies. The smaller companies are lowering prices to gain a share of the market in most cases, but Samsung remains the leading brand of tablets. SITUATION ANALYSIS FOR SAMSUNG COMPANY 4 Reference Chang, S.-J. (2011). Sony vs. Samsung: The Inside Story of the Electronics Giants' Battle For Global Supremacy. Hoboken: John Wiley & Sons. Satterfield, M. (2014). The one week marketing plan: The set it & forget it approach for quickly growing your business