Opportunities New markets and segments New products Diversification opportunities Market growth Competitor weakness Demographic and social change Change in environment
Opportunities • New markets and segments • New products • Diversification opportunities • Market growth • Competitor weakness • Demographic and social change • Change in environment
Weaknesses Few core strengths · Low market share Old plant or technology Weak finances and/or poor cash flow Lacking management skills Poor record on innovation Low quality and/or reputation Non-differentiated products
Weaknesses • Few core strengths • Low market share • Old plant or technology • Weak finances and/or poor cash flow • Lacking management skills • Poor record on innovation • Low quality and/or reputation • Non-differentiated products
Strengths · Market dominance Core strengths Economies of scale Low cost position Leadership and management skills Financial and cash reserves Manufacturing ability Reputation Differentiated products
Strengths • Market dominance • Core strengths • Economies of scale • Low cost position • Leadership and management skills • Financial and cash reserves • Manufacturing ability • Reputation • Differentiated products
Analysis of Financials Liquidity ratios-ability to meet short term obligations Leverage ratios -extent of debt financing Activity ratios -effective use of resources Profitability ratios -effectiveness of the firm Growth rates -ability to maintain economic position
Analysis of Financials • Liquidity ratios – ability to meet short term obligations • Leverage ratios – extent of debt financing • Activity ratios – effective use of resources • Profitability ratios – effectiveness of the firm • Growth rates – ability to maintain economic position