Explain the four primary areas under which a company should analyze its strengths and weaknesses as part

Question

of the competitive comparison framework.

What will be an ideal response?

Answer 1

The popular SWOT analysis (strengths, weaknesses, opportunities, and threats) interprets the internal (company
strengths and weaknesses) and external (market opportunities and strengths) marketing environment. The
competitive comparison framework compares the strengths and
weaknesses of principal competitors. The framework does not compare opportunities and threats directly, because
these are often very similar across the principal competitors, resulting in little additional insight. If the marketing
plan format of the organization demands a typical SWOT four quadrant diagram, it is a simple matter to append
market opportunities and threats to the strengths and weaknesses. An organization's strengths and weaknesses, as
the names imply, are areas where it is superior or inferior, respectively, to its competitors. One can gain insight into
competitors by evaluating strengths and weaknesses in four primary areas: people, culture, company reputation,
and customers.
• People: Dynamic, visionary leaders can be an overwhelming strength for an organization. Not only does their
superior strategy lead the company in the right direction, their charisma can propagate throughout the
organization, resulting in the entire company pulling together.
• Culture: A company's culture is defined as the set of shared experiences, beliefs, and norms that characterize an
organization. Organizations with achievement oriented cultures, where optimism and "can-do" attitudes rule, are
generally much better set up for success than those with pessimistic or indifferent cultures.
• Company reputation: Positive reputations are earned by doing the right thing over extended periods of time.
Reputations set companies apart from their competitors.
• Customers: Loyal, happy customers are a source of strength for a company. Their loyalty ensures a steady income
stream as they purchase new products and services from the company. They share their happiness with word of
mouth recommendations to others, boosting sales from nonusers of the brand. Some customers, like those of
Harley-Davidson and Apple, even tattoo the brand's logo on their arms.