[MUSIC] Hi, today, we're going to talk about the SWOT matrix. The SWOT matrix is the summary of the analysis stage of the marketing plan. The SWOT matrix probably summarizes what we have learned about the external analysis and the internal analysis. So it is a good tool to give in just one short word we have learned and understand about the analysis. So remember that we were dividing the analysis in external analysis and internal analysis. And in each of those parts, we are going to try and identify the good things and the bad things, the positive things and the negative. In the internal side, the positive things we called them strengths and we can put them here, strengths. And in the negative side we identify negative things and we called them weaknesses. Okay, and weaknesses. And in the external side, we can identify also positive things and negative things. The positive things, we call them usually opportunities. And the negative things, we call them threats, okay? So here we are, this is our SWOT matrix. And basically, what we are going to try and identify now is what is positive and negative, both in the internal and the external analysis. Let me try and do this with an example of a brand that we all know. Let's take Apple and its iPhone, okay? Probably the best known smartphone in the market. More than 300 million units to be sold next year. So very well known. So let me go step-by-step, and try and identify what is positive and negative here, and where should we put it in this matrix. Let's begin with the internal analysis. Okay, let's analyze one of the strengths of the brand. Okay, so what is the first strength that probably we can identify? Well the brand itself. The brand equity. Okay? So the brand. One of the thing is positive from the internal side. Where there's another element of differentiation. Their very strong customer loyalty. Okay, why? Because usually Apple customers become very loyal. Another thing, the design okay, is one of the big assets of the product. Okay so, good design, excellent design. Very consistent. Another thing, apps. A lot of apps that you can use in your smartphone. So all of these things are actually attractive and strengths of the brand. Let me take you to the negative side. What could be weaknesses? So weaknesses could be the price, okay. Why? Because on iPhone it's expensive. It's actually very expensive. Another thing is that the accessories that come usually with the phone are quite expensive also. Expensive. Another thing that could be negative, no variety. It's take it, or leave it. Okay, so a little variety compared with other phones. Another thing, that for some people could be a negative thing. No Steve Jobs any more, so maybe the brand is becoming not so appealing. And another thing that is probably more technical is that the battery is fixed, okay? So all these things are positive, those are negative. Let me take you now to the external analysis and look at the opportunities and threats. What is some of the opportunities that we see? For example, the smartphone market is actually growing and it's growing a lot, so that is positive for them. We're becoming very dependent on digitalization, so somehow is this dependency On the digital tools and the internet, actually. Positive things in the opportunities, the potential expansion. Okay, both geographic and in terms of new markets that can it can be accessed. And another opportunity for them is the market for accessories. Okay, so find a long list of opportunities that they can use. What could be the threats? The negative things? Probably the most important threat is Android. Okay, which is the competitor in terms of overly assisted. Very strong and very powerful and stable. Another threat no doubt, Samsung. Main competitor developing a lot of product, new programming development very fast, all types of forms, and sizes and shapes. So big threat. Another thing, probably Apple itself lacks innovation, okay? Could be surprising, but in the last few years, it's not innovated as it used to be. So we're still all waiting for the big new product, okay? Or maybe Apple is somehow losing appeal. Okay, good, so all these is going to be our analysis. And this is what we call the SWOT matrix. In this case for the iPhone. Okay, strengths, witnesses, opportunities, and threats. What is idea? In a marketing plan we're going to try and build on this side. So the strengths and opportunities and we're going to try and defend ourselves from the negative side, okay. So try and leverage on your strengths, okay, and your marketing plan. Try and take the opportunities that you have identified in these SWOT matrix. Try and somehow hide your weaknesses, okay, and try and defend yourself from the threats, okay? So that will be the SWOT matrix that like I was saying it going to close analysis part of our marketing plan and of course in your assessment you'll be asked to do this. You'll be asked to do this for the assignment case, if you choose to do for the case or for your own project or your own venture. Thank you very much. [MUSIC]
