Running head: STRATEGIC PLAN PART 2: SWOT ANALYSIS PAPER Strategic Plan Part 2: SWOT Analysis Paper Patricia Hatton BUS/475 November 14, 2016 Michael Portillo 1 STRATEGIC PLAN PART 2: SWOT ANALYSIS PAPER 2 Strategic Plan Part 2: SWOT Analysis Paper SWOT is an acronym used to describe the particular Strengths, Weaknesses, Opportunities, and Threats that are strategic factors for a specific company (Olsen, 2016). A SWOT analysis is good for a company to determine what factors affect the company’s business and what to expect both internally and externally. Internal factors tell a company what the strengths are so they know what to build on and what the weaknesses are so they know what areas to improve on. External factors describe the opportunities and threats the company faces. This paper will describe the SWOT analysis conducted to show the internal and external factors that can have an effect on the AT&T Smart Tote. SWOT Analysis EXTERNEAL FORCES FACTOR STRENGTH WEAKNESS OPPORTUNITY Innovation Work together with Michael Partnered with another Korrs legal team and learn Strong legal team large corporation for design from them Large reach in over 200 Continue to focus on companies Size emerging economies in Targets a large group of May only attract certain women women Creates new market Get involved in production Fast, Global, and Mobile Not a computer company of computers New brand - must company New design and technology with existing like items in attracting new buyers the market Expansion into new areas Social Work-Life balance Environmental Strong reputation in market Technology Create a larger footprint in the market May not be accepted Geographic locations Build on new ideas and consumer acceptance FACTOR STRENGTH WEAKNESS OPPORTUNITY Strategy Control and leverage Time Structures Well defined roles Right employees Develop new concepts Support product development Processes and Systems Strong R&D department Over 200,000 employees within the company Developing a new market and buyer base Delays in the process Dedication and commitment Change and improvements Get involved with a new division and ideas Tracking goals Discover a new market Legal and Regulatory Global Economic Technology Competitive Analysis Work is always with you Marketable THREAT TREND Unstable political factors can affect sales Regulated in different countries Regulatory systems can change Global growth creates new opportunities Interest rates Technology advancement Consumer spending Continuous improvements in technology May not be accepted Drives new ideas Gender specific Market could change beyond AT&T's ability to adapt New lifestyle Highly competitive market Expanding with future opportunities Constant change in fashion trends INTERNAL FORCES Resources Goals Strategic Capabilities Culture Technologies Innovations Intellectual Property Leadership Knowledge and experience Complexity Perception not all Focused on employee ideas employees fit the creativity Competent technology department Not a computer company Not accepted by Strong focus on innovation stakeholders Unique design Experienced and open minded Finding the right balance Not experienced in fashion THREAT Over estimating target market TREND Management differences Unnecessary steps that could be created Economic downturn forcing layoffs Organized and controlled Implementing new product Accomplish goals Getting the most out of the employees Customer satisfaction Values and perceptions Changes in market requiring additional resources Measure and track Increases productivity and Develop new values Change not accepted desire to do more New ideas for development Failure that disrupts the Vast growing technology in computer industry business world Build assets and resources Unique Limited budget Introducing a unique design into a tech world Rights Lack of communication and Set challenging goals direction Raising the bar internally Striking interest of innovators Inspires and motivates employees STRATEGIC PLAN PART 2: SWOT ANALYSIS PAPER 3 Economic & Regulatory Trends While conducting this analysis, it was realized there are factors such as economic, legal, and regulatory forces and trends that can affect the production and introduction of the AT&T Smart Tote. While the idea is to introduce the Smart Tote globally, there are regulations in other countries that could have an impact on bringing in a new computer product. Technology is always changing and continues to grow so there is a need for new products to be introduced. Making sure the legal team is monitoring the exports and imports into other countries is important. Adapting to Change AT&T has been committed to innovation and change. This is recognized through the resources the company has dedicated to creating new ideas and new ways of reaching the market. Change is something that is constant and AT&T has adapted to where the new technology and approach into the computer industry is taking them. There is excitement around the new innovations of the Smart Tote and management wants to ensure the development plans are strategically analyzed. Utilizing the supply chain group is important as they have outlined the strategic capabilities needed for taking the new Smart Tote to the market. Supply chain has established relationships with the retailers that will stock and sell the Smart Tote. Understanding the market demand and how this new product will be receptive in the market is crucial to the success of the launch. The new division, Outside Thinkers, has teamed up with supply chain to take advantage of their competencies in production and release of the Smart Tote. Potential Issues The major issues AT&T faces with the new Smart Tote is how well it will be received in the market since it’s geared mostly towards women. Is there a true market for an all in one STRATEGIC PLAN PART 2: SWOT ANALYSIS PAPER 4 computer and purse? AT&T is not a traditional tech company that has ever competed with companies like Apple, Dell, or Microsoft with their computers or tablets. AT&T provides TV and cell phone services and has only sold products that support those industries. There’s a risk with not only diving into computers but also into fashion. The product needs to attract women to want to carry it and it needs to have the look and feel of a purse and not a computer. AT&T lacks experience in both of these areas but utilizing the research and development group, AT&T feels they have produced a new product that will be successful. Management has devoted resources and money to the development of the Smart Tote and is committed to providing the necessary tools to the marketing and sales team to make the launch a success. Opportunities There are opportunities with bringing the new Smart Tote to life and AT&T has recognized those opportunities externally and internally. There are emerging economies in multiple countries and AT&T will focus on expanding in those countries. There are opportunities for building new ideas and showing consumers AT&T is no longer just a service provider but rather an innovator listening to their clients and finding solutions. Putting teams together to brainstorm new ideas and showcase these ideas to the stakeholders in the company, is creating teamwork and improving the culture within the company. Employees are excited to have something new to work towards and excited their ideas are being heard. Hypothesis Although AT&T’s stakeholders are onboard with the new Smart Tote, the launch of this product is extremely important and must be monitored. There are many issues the company could face with producing and selling a product that is not only new to AT&T but new to the market. To monitor the launch of the Smart Tote, we are conducting research in order to test the STRATEGIC PLAN PART 2: SWOT ANALYSIS PAPER 5 market and how well the Smart Tote is received. The challenges AT&T face ranges from experiences, to budget, to economic constraints, and working with a highly competitive market. We have split our team into 4 groups to make sure we are covering the full ray of the possible challenges. We are collecting data on economic conditions, conducting buyer survey’s to gather their thoughts on satisfactory, and tracking any returns due to computer failure or problems. By compiling this data, we can test our hypothesis to ensure we are marketing the right areas and that we have produced a new product that is well received in the market. Conclusion Although a SWOT analysis can be time consuming depending on how many factors you are analyzing, there is great benefit to using this tool. It provides a clear focus for your strategic plan and helps with understanding the factors that affect the business internally and externally. AT&T has gained knowledge of the competitive advantages and disadvantages and properly outlined the strengths and weaknesses of initiating the launch of the Smart Tote. STRATEGIC PLAN PART 2: SWOT ANALYSIS PAPER References Olsen, E. (2016). OnStrategy. Retrieved from http://onstrategyhq.com/resources/internal-and external-analysis/ 6
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