Session07: SWOT Analysis

1. Manning School of Business Session07:SWOT Analysis Dr. Mark H. Mortensen 66.490.211 and 212 Tues &Thurs 2:00 to 3:15 3:30 to 4:45

2. Today Read Chapter 4, Section 4.5 Familiarize yourself with SWOT hand out #4 Duncan Donuts Case Study • Turn in #4 Dunkin Donuts Case Study • Attendance • Discussion on SWOT • Group workshop – create a rough SWOT analysis of Starbucksand Dunkin Donuts • Assign Assignment #5, due Tuesday. SWOT analysis of Starbucks, Dunkin’ Donuts, and McDonalds coffee and pastry businesses.

3. Today • Turn in #4 Dunkin Donuts Case Study • Attendance • Discussion on SWOT • Group workshop – create a rough SWOT analysis of Starbucksand Dunkin Donuts • Assignment #5, due Tuesday. Individual TOWS analysis of Starbucks, Dunkin’ Donuts, and McDonalds in the “coffee and pastry” businesses.

4. Strategic Management Process: Strategy Formulation TOOLS • All the tools from Environmental Scanning • SWOT Analysis(TOWS, IFAS, EFAS) • Unique Selling Point Analysis • Scenario Planning

5. What is a “SWOT” analysis? • A technique for understanding a firm’s strengths and weaknesses along with the opportunities and threats that exist in the firm’s environment • Takes a narrow focus by centering on an individual firm • Used to compare internal and external factors in order to generate ideas about how their firm might become more successful

6. SWOT Analysis Template Strengths • Xxx • Xxx • Xxx • Xxx • Xxx • xxx Weaknesses • Xxx • Xxx • Xxx • Xxx • Xxx • xxx Opportunities • Xxx • Xxx • Xxx • Xxx • Xxx • xxx Threats • Xxx • Xxx • Xxx • Xxx • Xxx • xxx

7. What do you do with a SWOT? Strengths • Xxx • Xxx • Xxx • Xxx • Xxx • xxx Weaknesses • Xxx • Xxx • Xxx • Xxx • Xxx • xxx • Steer clear of weaknesses and resolve any crushing weaknesses • Leverage strengths Opportunities • Xxx • Xxx • Xxx • Xxx • Xxx • xxx Threats • Xxx • Xxx • Xxx • Xxx • Xxx • xxx • Protect against major threats • Capitalize on opportunities

8. Analysis: SWOT for AIRCOM International • Strengths • Is a strong supplier with a good brand, excellent reference customers and scalable products in both planning and performance management. • Is an established leading independent mobile performance management provider with the ability to combine software with consultancy expertise. • Has both performance and network planning and optimisation products, which are important to the development of SONs. • Offers multi-vendor, multi-technology support for mixed 2G, 3G and 4G network environments, and evolving products for HSPA+, LTE and SON. • Has more than 300 performance data interfaces available, covering all major network equipment manufacturers (NEMs). • Employs a deal-driven process for good cash flow, and is moving towards being market-driven. • Opportunities • CSPs are spending more in this area because of 4G technology upgrades. • Operators need a planned, efficient evolution to 4G that make maximal use of established 2G, 3G and 3G+ resources. • Capex-restricted CSPs are moving towards shared infrastructure. • The industry vision for SONs requires co-ordinated performance, optimisation, planning and configuration functions. • AIRCOM has an opportunity to consolidate its position as dominant independent tools and services supplier worldwide. • AIRCOM could partner with NEMs. • Weaknesses • Is making the transition to modern software development methodologies, and is encountering the usual issues. • Has large customers that could have a negative influence on the company’s product roadmap. • A few CSPs account for much of AIRCOM’s revenue. • Threats • Outsourced engineering services from Ericsson, Mentum and others. • New, small, niche entrants or players. • IBM’s potential market influence if it decides to enter the space, building on Tivoli’s market presence in the performance monitoring space. • NEMs offering SON capabilities for their own equipment will garner some of the value AIRCOM currently captures. • NEMs deciding to offer these functions – particularly SON – with multi-vendor capabilities.

9. Microsoft Dynamics CRM SWOT Analysis Microsoft has only recently introduced the Microsoft Dynamic CRM application in the market. It is building its partner programme under a new CSP penetration strategy that is much more practical and focused than its previous attempts during the past two decades. 4.1 Strengths Microsoft has excellent global brand recognition because it provides a multitude of software products to enterprises and CSPs worldwide. Microsoft Dynamics CRM software is positioned as a basic platform for telecoms IT groups, partner ISVs and SIs to establish their own basic customer care support with a minimum of complexity. Such systems should appeal to Tier 2 and 3 CSPs, or Tier 1 CSPs that want to establish a new CRM infrastructure for a specific new service or subsidiary quickly. Many CSPs are looking to enter new businesses, so Microsoft Dynamics CRM may find a more favorable market. Microsoft Dynamics CRM is based on the Microsoft Windows OS, which was a weakness in the CSP market even five years ago, but is now accepted as a software platform for systems such as CRM. Until recently, Microsoft’s penetration strategy for CSPs in the BSS and OSS arenas was not very successful because it centered around the Microsoft middleware and Windows OS. Its new strategy is much bettersuited to the telecoms industry because it is centered around the Microsoft CRM application and involves partnering with other well-known BSS vendors (such as Convergys, Redknee and Tribold). 4.2 Weaknesses Microsoft’s solution offers only basic CRM capabilities. This is suitable for new CSPs, or new divisions of well-established CSPs. However, CSPs that are engaged in a struggle for market share may want the additional features available from specialist vendors, which can also provide consulting on operations best practices. Microsoft and its ISV partners tout their ability to deliver many of these additional functions by integrating products from other ISVs – especially those developed on Microsoft middleware. Scalability was a perceived weakness, but recent benchmarks have alleviated those concerns. 4.3 Threats Established CRM vendors are well-embedded in the CSP market and have proven, high-functionality CRM systems. Other CRM vendors, such as SAP, also have a strong presence in telecoms verticals. These more focused vendors represent formidable competitors to Microsoft – particularly at the upper end of the market. 4.4 Opportunities The movement of CSPs into new services, whose support structures may, at least at first, be separate from the established services, represents an opportunity for Microsoft’s basic, cross-industry CRM system for Microsoftfor these specific services. Relationships with local distributors and SIs can give Microsoft greater reach into emerging markets. The possibility of CSPs hosting the Microsoft Dynamics CRM application, offered in a software-as-a-service (SaaS) model to SMEs, can give added impetus to the adoption of the system for use by the CSPs themselves – perhaps even in a SaaS business model.

10. TOWS Strategic Alternatives Matrix TOWS Strategic Alternatives Matrix

11. Today • Turn in #4 Dunkin Donuts Case Study • Attendance • Discussion on SWOT • Group workshop – create a rough SWOT analysis of Starbucksand Dunkin Donuts • Assignment #5, due Tuesday. Individual TOWS analysis of Starbucks, Dunkin’ Donuts, and McDonalds in the “coffee and pastry” businesses.

12. Today • Turn in #4 Dunkin Donuts Case Study • Attendance • Discussion on SWOT • Group workshop – create a rough SWOT analysis of Starbucks and Dunkin Donuts • Assignment #5, due Tuesday. TOWS analysis of Starbucks, Dunkin’ Donuts, and McDonalds in the “coffee and pastry” businesses.

13. Strategic Management – Spring 2013