238 CHAPTER 7: Measuring Strengths and Weaknesses
Measuring Strengths and Weaknesses
1. Meaning of Strengths and Weaknesses (TM 7-1)
B. Measuring Strengths and Weaknesses
1. Measuring of Product Strengths and Weaknesses: Conceptual Scheme (TM 7-2)
2. Meaning of Current Strategic Posture (TM 7-3)
• Operational Scheme For Measuring Current Strategic Posture (TM7-4)
• Current Strategy of a Product/Market (TM 7-5)
a. What Markets Do We Have? (TM 7-6)
b. How is Each Market Served? (TM 7-7)
3. Past Performance
• Product Performance Profile (TM 7-8)
• Market Performance Profile (TM 7-9)
• Financial Performance
a. Performance Measures (TM 7-10)
b. Performance Standards (TM 7-11)
4. Marketing Environment (TM 7-12)
C. Opportunity Analysis
1. Areas of Strength – Some Examples (TM 7-13)
2. Relative Strenghts of Personal Computer Firms in 2008 (TM 7-14)
3. Matching Strengths with Opportunities (TM 7-15)
4. Typical Marketing Weaknesses (TM 7-16)
239 CHAPTER 7: Measuring Strengths and Weaknesses
MEANING OF STRENGTHS AND
Strengths refer to the competitive advantages and
other distinctive competencies that the company
can exert in the marketplace. The distinctive
competence of an organization is more than what it
can do; it is what it can do particularly well.
Weaknesses are constraints that hinder movements in certain directions.
CHAPTER 7: Measuring Strengths and Weaknesses 240
MEASUREMENT OF PRODUCT
STRENGTHS AND WEAKNESSES:
241 CHAPTER 7: Measuring Strengths and Weaknesses
MEANING OF CURRENT STRATEGIC
• What underlies our company’s success, given
competitor’s patterns of doing business?
• Are there any characteristics and traits that have
been followed regularly?
• To what strategic posture do these characteristics and traits lead?
• What are the critical factors that could make a
difference in the success of the strategy?
• To what extent are critical factors likely to undergo a change? What may be the direction of
CHAPTER 7: Measuring Strengths and Weaknesses 242
OPERATIONAL SCHEME FOR MEASURING
CURRENT STRATEGIC POSTURE
• Identify actual current scope of the company’s
• Identify pattern of actual past and existing
• Deduce the actual basis on which the company
has been competing.
• Determine actual performance criteria, emphasis,
243 CHAPTER 7: Measuring Strengths and Weaknesses
CURRENT STRATEGY OF A
The current strategy of a product/market may be
examined by seeking answers to the following two
1. What markets do we have?
2. How is each market served?
CHAPTER 7: Measuring Strengths and Weaknesses 244
WHAT MARKETS DO WE HAVE?
• Recognize different market segments.
• Build a demographic profile of each segment.
• Identify important customers in each segment.
• Identify those customers, while important, also
do business with competitors.
• Reasons that each important customer may
have in buying the product from us.
• Strategic perspective of each important
customer as it concerns the product’s purchase.
• Anticipated changes in each customer’s
245 CHAPTER 7: Measuring Strengths and Weaknesses
HOW IS EACH MARKET SERVED?
It refers to the means that a company employs to
serve different customers. This can be examined
by analyzing information contained in Exhibit 7-3 in
the text. (See the breakfast cereal example in the
CHAPTER 7: Measuring Strengths and Weaknesses 246
PRODUCT PERFORMANCE PROFILE
CONTRIBUTION TO COMPANY
247 CHAPTER 7: Measuring Strengths and Weaknesses
MARKET PERFORMANCE PROFILE
CONTRIBUTION TO COMPANY
CHAPTER 7: Measuring Strengths and Weaknesses 248
• Growth rate
• Market share
• Cash flow
249 CHAPTER 7: Measuring Strengths and Weaknesses
• Company’s performance
• Competitors’ performance
• Management expectations
• Performance in terms of resource committed
CHAPTER 7: Measuring Strengths and Weaknesses 250
Monitoring of the environment from the viewpoint
of products/markets is a line function that should
be carried out by those who are involved in making
marketing decisions. The constituents of the
product/ market environment are:
• Social and cultural effects
• Political influences
• Ethical considerations
• Legal requirements
• Economic climate
• Technological changes
• Institutional evolution
• Location of consumers
• Expenditure patterns
251 CHAPTER 7: Measuring Strengths and Weaknesses
AREAS OF STRENGTH—
• Excellence in product design.
• Leadership in product innovation.
• Efficiency in customer service.
• Effectiveness in sales promotion.
• Merchandising efficiency.
• Customer loyalty.
• Dominant market share position.
• Effectiveness of advertising.
Service and Support
National Sales Force
Depth of Management
CHAPTER 7: Measuring Strengths and Weaknesses 252
RELATIVE STRENGTHS OF PERSONAL
COMPUTER FIRMS IN 2008
253 CHAPTER 7: Measuring Strengths and Weaknesses
MATCHING STRENGTHS WITH
(FURNISHED BY THE
Price increases for
A trend of changing
geographic shift of
part of the market
A market segment
neglected by the
not solicited by
A product weakness
A discovered new
use for the product
Develop a premium
existing product in
the segment hitherto
Develop a new
channel outlet for the
CHAPTER 7: Measuring Strengths and Weaknesses 254
TYPICAL MARKETING WEAKNESSES
• Inadequate definition of customer for
• Ambiguous service policies.
• Too many levels of reporting in the organizational setup.
• Overlapping channels.
• Lack of top-management involvement in new
• Lack of quantitative goals.