What Is the Relationship Between Swot and Strategy?

807 WordsSep 28, 20124 Pages
What is the relationship between SWOT and Strategy? Firstly, we will define Strategy and SWOT separately. The definition I found for strategy was “Strategy is different from vision, mission, goals, priorities, and plans. It is the result of choices executives make, on where to play and how to win, to maximize the long-term value” (Favaro, Rangan & Hirsh, 2012, para. 2). So, strategy is defined to 1) target market(s) where the customers and the needs are satisfied, 2) distinguish a company from other competitors and offer advantageous value and 3) select strategy that gives the greatest an increased value to the company's economic value in the long term. As to SWOT, it stands out for Strengths, Weaknesses, Opportunities and Threats.…show more content…
Threats Barrier of entry Due to Indian regulation; Market saturation in India; Presence of Copycat competitors; Traditional tea-based culture; Global economic downturn; Increased ingredient purchasing costs. Once we have done SWOT analysis, we can select one of the strategies and appropriate action within each strategy: Find a suitable partner; Buy an existing chain; Reconsider franchising; Do not expand into India. As the proof that companies utilize SWOT, along with strategy, next I would like to refer you to news about Starbucks next steps regarding an Indian market. "After five years of delays, Starbucks finally will open in India this fall, in partnership with Tata, a conglomerate that markets everything from coffee to cars. The first stores are planned in Mumbai and New Delhi" (Allison, 2012). Works Cited: Ken Favaro, Kasturi Rangan and Evan Hirsh. May 29, 2012. Strategy: An Executive’s Definition. Retrieved on August 22, 2012. http://www.strategy-business.com/article/cs00002?gko=d59c2 Melisa Alison. Seattle Times. August 5, 2012. Starbucks maps future of Venti-sized global expansion. Retrieved on August 22, 2012. http://seattletimes.nwsource.com/text/2018837267.htm Ricky W. Griffin. January 1, 2011. Fundamentals of Management. 6th Edition. Cengage Learning. Starbucks 2006 Annual Report. Retrieved on August 22, 2012:
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