Strategic Management & SWOT Analysis Lecture

Vocabulary flashcards covering core concepts of strategic management, the SWOT framework, and the Netflix case example.

Strategic Management

The coordinated planning and execution of actions that enable a firm to achieve long-term competitive advantage.

Strategic Management Process

A sequence that moves from mission and goals through external and internal analyses, strategic choice, strategy implementation, and ultimately competitive advantage.

Mission Statement

A firm’s fundamental purpose and core reason for existing, serving as the starting point of strategic planning.

Goals (in strategy)

Specific, measurable outcomes a firm seeks to achieve in pursuit of its mission.

External Analysis

Assessment of factors outside the organization—including industry, market, and macro-environment—to identify opportunities and threats.

Internal Analysis

Evaluation of a firm’s resources, capabilities, and processes to uncover strengths and weaknesses.

SWOT Analysis

A framework that combines internal (strengths, weaknesses) and external (opportunities, threats) insights to guide strategic decisions.

Strengths (SWOT)

Internal attributes or resources that give an organization an advantage over competitors.

Weaknesses (SWOT)

Internal limitations or deficiencies that place an organization at a disadvantage.

Opportunities (SWOT)

External conditions that could be exploited for organizational growth or advantage.

Threats (SWOT)

External factors that could jeopardize an organization’s performance or competitiveness.

Albert Humphrey

The Stanford researcher credited with developing the SWOT framework in the 1960s.

PEST Analysis

A tool that scans Political, Economic, Social, and Technological factors in the macro-environment.

Porter’s Five Forces Analysis

An external analysis model examining competitive rivalry, supplier power, buyer power, threat of substitutes, and threat of new entrants.

VRIO Framework

An internal analysis tool that tests whether resources are Valuable, Rare, Inimitable, and Organized to capture value.

Competitive Advantage

A firm’s ability to outperform rivals consistently through superior value creation or cost structure.

Brand Awareness (Netflix strength)

High global recognition that positions Netflix among the world’s most admired and innovative companies.

Data-Driven Recommendation Algorithm

Netflix’s analytical system that leverages user data to personalize content suggestions and inform content creation.

Original Content (e.g., House of Cards)

Programming produced or commissioned by Netflix, often guided by data insights to match audience preferences.

Limited Content Access (Netflix weakness)

A smaller content catalog—about 10 % of Amazon Prime’s—stemming from licensing constraints.

High Content Cost (Netflix weakness)

Significant expenditures required to license or produce media, putting pressure on profitability.

International Growth Opportunity

Potential for Netflix to acquire new subscribers in under-penetrated global internet markets.

Low Barriers to Entry (Netflix threat)

Ease with which new streaming services (e.g., Amazon, Apple, YouTube) can enter the market and compete.

Cable & Satellite Streaming Offers

Bundled, often ‘free’ streaming options for existing pay-TV subscribers, posing competitive pressure to Netflix.