Formative Assessment: SWOT Analysis of a Known Business Entity
Objective: Evaluate the competitiveness of a business using SWOT
analysis, focusing on key aspects like price, market share, product range,
quality, and ability to advertise.
Task Overview:
You are required to conduct a SWOT (Strengths, Weaknesses,
Opportunities, and Threats) analysis of a known business entity,
evaluating its competitiveness. Choose a company of your choice that
you are familiar with:
For this exercise, you will focus on the following aspects of
competitiveness:
Price
Market Share
Product Range
Quality
Ability to Advertise
Steps for the Assessment:
1. Introduction: Begin by introducing the business entity you have
selected. Provide a brief background of the company, including the
industry in which it operates, its primary products or services, and
its market presence.
2. SWOT Analysis: Conduct a SWOT analysis of the company,
focusing on the specified areas of competitiveness. Below is a
guide for each section:
o Strengths: What internal advantages does the company have
in terms of price, market share, product range, quality, and
ability to advertise?
Example: Does the company offer competitive pricing?
Is its product range diverse? Does it have a strong
advertising presence?
o Weaknesses: What are the internal factors that limit the
company’s competitiveness in the same areas?
Example: Are there gaps in the product range or quality
issues? Is the company’s pricing too high relative to
competitors?
o Opportunities: What external factors can the company take
advantage of to improve its competitiveness in the listed
areas?
Example: Are there new markets the company could
enter? Can it innovate in its product range or adopt new
advertising strategies?
o Threats: What external factors could negatively impact the
company's competitiveness in terms of price, market share,
product range, quality, or advertising?
Example: Are there new competitors offering lower
prices? Are there changes in consumer preferences that
could threaten the company's market share or product
quality expectations?
Focus Areas:
Price: Evaluate whether the company is competitive in terms of
pricing compared to its major competitors. Consider factors like
affordability, premium pricing, or cost advantages.
Market Share: Assess the company’s position in the market. Is it
a leader, or does it face stiff competition that could affect its
market share?
Product Range: Analyze the breadth and diversity of the
company’s product offerings. Does it cater to various segments of
the market, or is it limited?
Quality: Evaluate the quality of the products or services. How
does it compare to competitors? Does the company have a
reputation for high quality?
Ability to Advertise: Assess the company’s marketing and
advertising strategies. How effective is the company in promoting
its products or services? Does it use modern advertising techniques
effectively (e.g., digital marketing, social media)?
Example SWOT Analysis: Nike
Strengths:
o Strong global market share in athletic footwear and apparel.
o High-quality products with advanced innovation in footwear
technology.
o Diverse product range covering different sports and lifestyle
segments.
o Effective global advertising campaigns, including celebrity
endorsements.
Weaknesses:
o Premium pricing can limit accessibility to some markets.
o Heavy reliance on the U.S. market, with less market
penetration in some international regions.
Opportunities:
o Expansion into emerging markets with more affordable
product lines.
o Increase digital marketing efforts to appeal to younger
audiences.
Threats:
o Competition from lower-cost competitors like Adidas and
Puma.
o Market saturation in the athletic footwear space.
Submission:
Prepare your analysis as a written report or presentation.
Provide evidence to support your evaluation (data, examples, etc.).
The analysis should be concise, focusing on the five
competitiveness aspects.
Assessment Criteria:
Understanding of SWOT Analysis: Clear identification of the
strengths, weaknesses, opportunities, and threats of the selected
business.
Application to Competitiveness: Effective analysis of price,
market share, product range, quality, and advertising ability.
Critical Thinking: Depth of thought in evaluating how the SWOT
factors influence the company’s competitive position.
Clarity and Structure: The report is well-organized, with clear
and coherent points.
This formative assessment will help you refine your analytical skills in
evaluating a business's competitive position using a structured SWOT
framework.
