The SWOT Template

SWOT Case Study

In this post we will provide a step-by-step example of how to create a SWOT analysis. For this purpose, we are using a fictitious company called “Foods & Drinks Inc.”

Strengths

Start by listing the strengths of the company. Be as specific as possible and use characteristics that are internal to the company. Be sure to prioritize the strengths to include the most important ones.

• Food & Drinks Inc. has flexibility to implement new business strategies
• The company has seen a 10% boost in sales in the last 5 years

Weaknesses

Follow strengths by listing the weaknesses of the company. Weaknesses are internal and negative aspects of the company; keep in mind that it’s important to list and focus on weaknesses that can be changed or improved upon.

• Small portfolio of products concentrated in a few categories of food products
• Limited and only local distribution network
• Limited budget for advertising and marketing

Opportunities

In the opportunities section, be sure to include positive external facts such as market growth opportunities or consumer trends that might impact your company. It is also important to think about how can you use the company strengths to increase opportunities. For example:

Comparing market sizes and growth for category expansion in emerging markets

Using data from Euromonitor International’s Industry forecast model, we are able to identify the biggest categories of the packaged foods industry. We can also use information about the category growth rates categories to identify portfolio expansion opportunities.

According to the data in the chart above, although dairy is the biggest category in packaged food, it is not among the top five fastest growing categories in the packaged food industry. On the other hand, the edible oils category in emerging markets represents 40.230.200 tonnes and has an expected growth rate of 6% annually, doubling the industry average of 3% in the same markets.

Using omnichannel strategies

After reviewing some quantitative data we can also include some trends analysis. According to a recent blog post written by Euromonitor’s Head of Global Retailing, Michelle Grant, e-commerce provides excellent opportunities for future growth in developed and emerging countries.

“There’s also been a dramatic shift in consumer behavior in the past three years. According to Euromonitor International’s Global Consumer Trends Survey, 25% of Americans shopped for groceries online at least once in 2013.  The percentage increased to 38% in 2016.”

Threats

In the SWOT analysis, threats are the negative external aspects to the company. Normally they can be related to market conditions or economic situations. For example:

Slow global growth in the packaged food market:

In a recent Euromonitor article titled, “Finding Pockets of Growth in the Global Food Market”, we see an overall revision of the packaged food industry. The growth rates of the different categories remain low (single digit growth rates) and in some cases even decreasing market sizes. According to global Head of Packaged Food, Lamine Lahouasnia, “The global food industry only grew by 1.1% in 2016, its lowest level in over a decade”.

In this type of environment, it is important to companies to look for growth opportunities. Smaller gains mean less room for outside companies to win market share, as most well-established brands use their market dominance to diversify their portfolio.

Increasing uncertainty keeps impacting developed markets.

Trump’s trade wars and tax breaks, China’s economic slowdown, possible hard landing Brexit scenarios and elections all over the EU are increasing the amount of uncertainty in the developed world markets.

This uncertainty will impact the possibility for industry growth or decline in the next five years. For example, a pessimistic scenario indicates that the total volume of packaged food sold in developed markets from 2016-2021 could decrease as much as a 0.3% compounded annual growth rate (CAGR) yearly.

Source: Euromonitor’s Packaged Food Industry Forecast Model

Filling the template and using the SWOT

After identifying all the elements to fill in the SWOT, use the template and work on a clean final version. Remember that the SWOT is strategy tool; keep and share your final version with your peers. Ask your team what strategies can be implemented to maximize opportunities and minimized threats based in what you find in the analysis.

Euromonitor International’s research identifies opportunities or threats in your industry or market, allowing you to create a more robust SWOT analysis. To learn more about Euromonitor International’s research tools and how we can help you with your business strategy, contact us.