Classroom Rules
Be on time and be
always prepared for
your class. Bring your
laptop in class.
Keep your mobile
phone switched off
or in a silent mode.
Ask only relevant
questions during
teaching time.
Do not interfere with
the teaching and
learning of your
colleagues.
Be polite and
respectful of the
teacher, yourself,
your classmates and
your institution.
Always do your best.
Foundation Year Project
Week 3 – Day 2: SWOT Analysis. Competition
Analysis. Business Software Applications.
Session Overview
By the end of this session students will be able to:
1. Review the concept of SWOT Analysis.
2. Conduct competition analysis and understand the
competitive advantage.
3. Research software applications to facilitate business
operations.
SWOT Analysis
• A well-known concept (since
1960s) that is employed to assess
various aspects of business in
terms of the strengths,
weaknesses, opportunities and
threats.
• The internal aspects (Strengths
and Weaknesses) are within
control of the business.
• The external aspects
(Opportunities and Threats) are
out of businesses’ control.
• Based on this mix, SWOT analysis
can be used to produce alternative
options for a business.
SWOT Analysis
(Benjaghta et al., 2021. Image: Talin, 2023)
Advantages of SWOT model:
– Easy and inexpensive to use;
– Helps formulate competitive
strategies in business
environments.
– It is used a s a tool for strategic
decision making.
– One of the most frequently
used tools.
– Helps uncover opportunities
and understand weaknesses.
– Competitive strategy can be
formulated.
• SO strategies: taking
advantage of opportunities.
• ST strategies: avoiding
threats.
• WO strategies: introducing
new opportunities by
reduction of weaknesses.
• WT strategies: avoid
threats by minimizing
weaknesses.
SWOT Matrix
Benjaghta et al., 2021
Strength is the characteristic that
adds value to something and makes
it more special than others. Strength
means that something is more
advantageous when compared to
something else. In this sense,
strength refers to a
positive, favourable and creative
characteristic.
Example: innovative product;
charismatic personnel; loyal
customers etc.
Strengths
SWOT (example)
Weaknesses
(Thompson et al, 2007)
Weakness refers to not having the
form and competency necessary
for something. Weakness means
that something is more
disadvantageous when compared to
something else. In this regard,
weakness is a characteristic that
is negative and unfavourable​.
Example: limited access to funds;
labour shortage; limited expertise.
Opportunity means a situation or
condition suitable for an activity.
Opportunity is an advantage and the
driving force for an activity to take
place. For this reason, it has a
positive
and favourable characteristic.
Example: new shopping centre
opening soon; a competitor going
out of business; new partnership,
etc.
Opportunities
SWOT (example)
Threats
(Thompson et al, 2007)
Threat is a situation or condition
that jeopardizes the actualization of
an activity. It refers to a
disadvantageous situation. For this
reason, it has a
negative characteristic that should
be avoided.
Example: new competitor opens
next door; cyberthreats; a key
employee leaving, etc.
Competition
Analysis
Questions:
• Who are your competitors?
• What products or services do they sell?
• What is each competitor’s market share?
• What are their past strategies?
• What are their current strategies?
• What type of media are used to market their products
or services?
• How many hours per week do they purchase to
advertise through the media used in this market?
• What are each competitor’s strengths and weaknesses?
• What potential threats do your competitors pose?
• What potential opportunities do they make available
for you (Bygrave & Zacharakis, 2011)?
Identifying your
competitors and
evaluating their
strategies to
determine their
strengths and
weaknesses relative
to those of your own
product or service
(Bloodgood & Bauerschmidt, 2002).​
Competition Analysis
• Direct competitors are those who
compete with you in a one-to-one
capacity. They offer essentially the
same solution to a customer’s
problem (need) that you do.
• Indirect competitors offer alternative
solutions to the same problem. Their
products could be very similar to
yours or not similar at all. The
important part is that a customer
could choose them as an alternative
to you.
Direct and Indirect Competitors
(Colwell, 2019)
(Colwell, 2019)
The analysis of
competitor actions is
important in
determining the market
share or the level of sales
that the company can
expect, but it may be
even more important in
determining the price
that the company can
charge for its products
and services (Griffin,
2015).
Why Conduct Competition Analysis?
Researching
Business Software
• Business software can ease
the burden of small business
management by allowing
easily accessible and
understood documentation of
business activities.
• It makes managing a business
more efficient and accessible
from anywhere.
• Business software
applications can represent a
competitive advantage.
Software for Business
(MinuteDock, 2023
Image: Geneca, 2023)
• Colwell, K. (2019) Starting a Business QuickStart Guide : The Simplified Beginner’s Guide to
Launching a Successful Small Business, Turning Your Vision Into Reality, and Achieving
Your Entrepreneurial Dream. Albany, NY: ClydeBank Media LLC. Available at:
https://search.ebscohost.com/login.aspx?direct=true&AuthType=sso&db=nlebk&AN=21
76181&site=eds-live (Accessed: 15 January 2023).
• Bloodgood, J. M. and Bauerschmidt, A. (2002). Competitive analysis: Do managers
accurately compare their firms to competitors? Journal of Managerial Issues, 14(4): 418-
434.​
• Bygrave, W. D., and Zacharakis, A. (2011). Entrepreneurship (2nd ed.). NJ, USA: Wiley.​
• Griffin, M. P. (2015). How to Write a Business Plan : A Step-by-Step Guide to Creating a
Plan That Gets Results: Vol. Fifth edition. AMA Self-Study.
• Benzaghta, M. A., Elwalda, A., Mousa, M. M., Erkan, I., & Rahman, M. (2021) SWOT analysis
applications: An integrative literature review. Journal of Global Business Insights, 6(1),
55-73. DOI: https://www.doi.org/ 10.5038/2640-6489.6.1.1148.
References
• THOMPSON, A. A., STRICKLAND, A. J. & GAMBLE, J. E. (2007). Crafting and Executing
Strategy-Concepts and Cases, (15th Edition), USA: McGrawHill/Irwin.​
• MinuteDock (2023) Five Types Of Software Every Business Needs. Available at:
https://minutedock.com/academy/5-types-of-software-every-business-needs.
(Accessed: 16 January 2023)
References