Use this as a guide to structuring your strategic analysis. Make use of tables and illustrations as much as you can as these can show relations more effectively than bullet points. In each explain why you have made a classification choice such as in the SWOT framework or why a capability satisfies a specific criteria needed to be a core competence.

Grading for a SWOT analysis is not linear. You must identify fundamental building blocks upon which deeper insights are based. While each of the four sections is worth 100 marks, unless earlier sections are completed well, it is not possible to get higher marks on later sections. This reflects the nature of strategy where overlooking a key element can render an entire strategy useless

1. External Analysis (100 marks)

Determine if each element of the environment is an opportunity (O) or a threat (T). It is possible for an element to be both in which case be sure to explain why.

• Characteristics of the Customers, Competitors, Suppliers, Distribution Partners (10 marks)
  • Eg: Price sensitive consumers (T)
  • Eg: Competitive supplier market (O)
• Technology Developments: eg: lithium ion batteries, encryption (10 marks)
• Government/Regulation: eg: patent laws (10 marks)
• Macroeconomic Factors: eg: Trade pacts, interest rates (10 marks)
• The Natural Environment: eg: Climate change, conflict (10 marks)

 

Industry Environment (50 marks)

Determine if the force is high (H) or low (L)

• Bargaining Power of Buyers
• Bargaining Power of Suppliers
• Threat of New Entrants
• Threat of Substitutes
• Competitive Rivalry

Overall is the industry attractive or unattractive? Provide an explanation for your conclusion.

 

2. Internal Analysis (100 Marks)

Resources

Identify tangible and intangible resources. Use the value chain to help identify specific areas of the firm. For each resource determine if it is a weakness or a strength. If it is not clear then leave it as neutral.

Tangible (eg: planes, manufacturing facility) (15 marks)

t1. Eg: patent for drug (S)

t2.

t3…..

Intangible (eg: brand recognition) (15 marks)

i1. Eg: poor relations with union (W)

i2.

i3…

Capabilities (30 marks)

Identify capabilities that characterize how the firm competes. Not all capabilities may be good for the firm. Determine each resource that is used to form that capability. Check to see which, if any, of the capabilities meet the six criteria needed for qualification as a core competence.

• Capability 1 and resources used to enable this capability [eg: t1, i2] (S)
• Capability 2 and resources used to enable this capability [eg t1, i1) (W)
• …..etc…

Core Competence Criteria for Each Capability (40 marks)

Ensure you justify why the capability does or does not qualify on each criterion.

Capability	Valued by customers	Inimitable	Durable	Extracts Value	Non-substitutable	Competitive Superiority
Capability 1
Capability 2

 

List Core Competence(s)  [there are usually very few, often only one and possibly none]

Eg: Capability 1