Category: Blog

SWOT Analysis: Strengths, Weaknesses, Opportunities, and Threats

SWOT Analysis: Strengths, Weaknesses, Opportunities, and Threats

Change is an inevitable part of community organizing. If you know how to take stock of the strengths, weaknesses, opportunities, and threats, you are more likely to plan and act effectively.

SWOT provides a tool to explore both internal and external factors that may influence your work.

WHAT IS A SWOT ANALYSIS AND WHY SHOULD YOU USE ONE?

SWOT stands for: Strength, Weakness, Opportunity, Threat. A SWOT analysis guides you to identify your organization’s strengths and weaknesses (S-W), as well as broader opportunities and threats (O-T). Developing a fuller awareness of the situation helps with both strategic planning and decision-making.

The SWOT method was originally developed for business and industry, but it is equally useful in the work of community health and development, education, and even for personal growth.

SWOT is not the only assessment technique you can use. Compare it with other assessment tools in the Community Tool Box to determine if this is the right approach for your situation. The strengths of this method are its simplicity and application to a variety of levels of operation.

WHEN DO YOU USE SWOT?

A SWOT analysis can offer helpful perspectives at any stage of an effort. You might use it to:

  • Explore possibilities for new efforts or solutions to problems.
  • Make decisions about the best path for your initiative. Identifying your opportunities for success in context of threats to success can clarify directions and choices.
  • Determine where change is possible. If you are at a juncture or turning point, an inventory of your strengths and weaknesses can reveal priorities as well as possibilities.
  • Adjust and refine plans mid-course. A new opportunity might open wider avenues, while a new threat could close a path that once existed.

SWOT also offers a simple way of communicating about your initiative or program and an excellent way to organize information you’ve gathered from studies or surveys.

WHAT ARE THE ELEMENTS OF A SWOT ANALYSIS?

A SWOT analysis focuses on Strengths, Weaknesses, Opportunities, and Threats.

Remember that the purpose of performing a SWOT is to reveal positive forces that work together and potential problems that need to be recognized and possibly addressed.

We will discuss the process of creating the analysis below, but first here are a few sample layouts for your SWOT analysis.

Ask participants to answer these simple questions: what are the strengths and weaknesses of your group, community, or effort, and what are the opportunities and threats facing it?

InternalExternal
StrengthsWeaknessesOpportunitiesThreats

 

 

 

 

 

 

 

If a looser structure helps you brainstorm, you can group positives and negatives to think broadly about your organization and its external environment.

PositivesNegatives
  • Strengths
  • Assets
  • Resources
  • Opportunities
  • Prospects
  • Weaknesses
  • Limitations
  • Restrictions
  • Threats
  • Challenges

 

Below is a third option for structuring your SWOT analysis, which may be appropriate for a larger initiative that requires detailed planning. This “TOWS Matrix” is adapted from Fred David’s Strategic Management text.

 STRENGTHS
1.
2.
3.
4.		WEAKNESSES
1.
2.
3.
4.
OPPORTUNITIES
1.
2.
3.
4.		Opportunity-Strength (OS) Strategies
Use the strengths to take advantage of opportunities
1.
2.		Opportunity-Weakness (OW) Strategies
Overcome weaknesses by taking advantage of opportunities
1.
2.
THREATS
1.
2.
3.
4.		Threat-Strength (TS) Strategies
Use strengths to avoid threats
1.
2.		Threat-Weakness (TW) Strategies
Minimize weaknesses and avoid threats
1.
2.

David gives an example for Campbell Soup Company that stresses financial goals, but it also illustrates how you can pair the items within a SWOT grid to develop strategies. (This version of the chart is abbreviated.)

 

STRENGTHS

  • Current profit ratio increased
  • Employee morale high
  • Market share has increased

 

WEAKNESSES

  • Legal suits not resolved
  • Plant capacity has fallen
  • Lack of strategic management system

 

OPPORTUNITIES

  • Western European unification
  • Rising health consciousness in selecting foods
  • Demand for soups increasing annually

 

Opportunity-Strength (OS) Strategies

  • Acquire food company in Europe (S1, S3, O1)
  • Develop new healthy soups (S2, O2)

Opportunity-Weakness (OW) Strategies

  • Develop new Pepperidge Farm products (W1, O2, O3)

THREATS

  • Low value of dollar
  • Tin cans are not biodegradable

 

Threat-Strength (TS) Strategies

  • Develop new biodegradable soup containers (S1, T2)

Threat-Weakness (TW) Strategies

  • Close unprofitable European operations (W3, T1)

This example also illustrates how threats can become opportunities (and vice versa). The limitation of tin cans (which aren’t biodegradable) creates an opportunity for leadership in developing biodegradable containers. There are several formats you can use to do a SWOT analysis, including a basic SWOT form that you can use to prompt analysis, but whatever format you use, don’t be surprised if your strengths and weaknesses don’t precisely match up to your opportunities and threats. You might need to refine, or you might need to simply look at the facts longer, or from a different angle. Your chart, list or table will certainly reveal patterns.

LISTING YOUR INTERNAL FACTORS: STRENGTHS AND WEAKNESSES (S, W)

Internal factors include your resources and experiences. General areas to consider:

  • Human resources - staff, volunteers, board members, target population
  • Physical resources - your location, building, equipment
  • Financial - grants, funding agencies, other sources of income
  • Activities and processes - programs you run, systems you employ
  • Past experiences - building blocks for learning and success, your reputation in the community

Don’t be too modest when listing your strengths. If you’re having difficulty naming them, start by simply listing your characteristics (e.g.., we’re small, we’re connected to the neighborhood). Some of these will probably be strengths.

Although the strengths and weakness of your organization are your internal qualities, don’t overlook the perspective of people outside your group. Identify strengths and weaknesses from both your own point of view and that of others, including those you serve or deal with. Do others see problems–or assets–that you don’t?

How do you get information about how outsiders perceive your strengths and weaknesses? You may know already if you’ve listened to those you serve. If not, this might be the time to gather that type of information. See related sections for ideas on conducting focus groups, user surveys, and listening sessions.

LISTING EXTERNAL FACTORS: OPPORTUNITIES AND THREATS (O, T)

Cast a wide net for the external part of the assessment. No organization, group, program, or neighborhood is immune to outside events and forces. Consider your connectedness, for better and worse, as you compile this part of your SWOT list.

Forces and facts that your group does not control include:

  • Future trends in your field or the culture
  • The economy - local, national, or international
  • Funding sources - foundations, donors, legislatures
  • Demographics - changes in the age, race, gender, culture of those you serve or in your area The physical environment (Is your building in a growing part of town? Is the bus company cutting routes?)
  • Legislation (Do new federal requirements make your job harder...or easier?)
  • Local, national or international events

HOW DO YOU CREATE A SWOT ANALYSIS?

WHO DEVELOPS THE SWOT?

The most common users of a SWOT analysis are team members and project managers who are responsible for decision-making and strategic planning.

But don’t overlook anyone in the creation stage!

An individual or small group can develop a SWOT analysis, but it will be more effective if you take advantage of many stakeholders. Each person or group offers a different perspective on the strengths and weaknesses of your program and has different experiences of both.

Likewise, one staff member, or volunteer or stakeholder may have information about an opportunity or threat that is essential to understanding your position and determining your future.

HOW DO YOU DEVELOP A SWOT ANALYSIS?

Steps for conducting a SWOT analysis:

  • Designate a leader or group facilitator who has good listening and group process skills, and who can keep things moving and on track.
  • Designate a recorder to back up the leader if your group is large. Use newsprint on a flip chart or a large board to record the analysis and discussion points. You can record later in a more polished fashion to share with stakeholders and to update.
  • Introduce the SWOT method and its purpose in your organization. This can be as simple as asking, “Where are we, where can we go?” If you have time, you could run through a quick example based on a shared experience or well-known public issue.
  • Depending on the nature of your group and the time available, let all participants introduce themselves. Then divide your stakeholders into smaller groups. If your retreat or meeting draws several groups of stakeholders together, make sure you mix the small groups to get a range of perspectives, and give them a chance to introduce themselves.
    • The size of these depends on the size of your entire group – breakout groups can range from three to ten. If the size gets much larger, some members may not participate.
  • Have each group designate a recorder, and provide each with newsprint or dry -erase board. Direct them to create a SWOT analysis in the format you choose-a chart, columns, a matrix, or even a page for each quality.
    • Give the groups 20-30 minutes to brainstorm and fill out their own strengths, weakness, opportunities and threats chart for your program, initiative or effort. Encourage them not to rule out any ideas at this stage, or the next.
    • Remind groups that the way to have a good idea is to have lots of ideas. Refinement can come later. In this way, the SWOT analysis also supports valuable discussion within your group or organization as you honestly assess.
    • It helps to generate lots of comments about your organization and your program, and even to put them in multiple categories if that provokes thought.
    • Once a list has been generated, it helps to refine it to the best 10 or fewer points so that the analysis can be truly helpful.
  • Reconvene the group at the agreed-upon time to share results. Gather information from the groups, recording on the flip-chart or board. Collect and organize the differing groups’ ideas and perceptions.
    • Proceed in S-W-O-T order, recording strengths first, weaknesses second, etc.
    • Or you can begin by calling for the top priorities in each category -the strongest strength, most dangerous weakness, biggest opportunity, worst threat–and continue to work across each category.
    • Ask one group at a time to report (“Group A, what do you see as strengths?”) You can vary which group begins the report so a certain group isn’t always left “bringing up the end” and repeating points made by others. (“Group B, let’s start with you for weaknesses.”)
    • Or, you can open the floor to all groups (“What strengths have you noted?”) for each category until all have contributed what they think is needed.
  • Discuss and record the results. Depending on your time frame and purpose:
    • Come to some consensus about the most important items in each category
    • Relate the analysis to your vision, mission, and goals
    • Translate the analysis to action plans and strategies
  • If appropriate, prepare a written summary of the SWOT analysis to share with participants for continued use in planning and implementation.

More ideas on conducting successful meetings can be found in Community Tool Box resources on conducting public forums and listening sessions, conducting focus groups, and organizing a retreat.

HOW DO YOU USE YOUR SWOT ANALYSIS?

Better understanding the factors affecting your initiative put you in a better position for action. This understanding helps as you:

  • Identify the issues or problems you intend to change
  • Set or reaffirm goals
  • Create an action plan

As you consider your analysis, be open to the possibilities that exist within a weakness or threat. Likewise, recognize that an opportunity can become a threat if everyone else sees the opportunity and plans to take advantage of it as well, thereby increasing your competition.

Finally, during your assessment and planning, you might keep an image in mind to help you make the most of a SWOT analysis: Look for a “stretch,” not just a “fit.” As Radha Balamuralikrishna and John C. Dugger of Iowa State University point out, SWOT usually reflects your current position or situation. Therefore one drawback is that it might not encourage openness to new possibilities. You can use SWOT to justify a course that has already been decided upon, but if your goal is to grow or improve, you will want to keep this in mind.

IN SUMMARY

A realistic recognition of the weaknesses and threats that exist for your effort is the first step to countering them with a robust set of strategies that build upon strengths and opportunities. A SWOT analysis identifies your strengths, weaknesses, opportunities and threats to assist you in making strategic plans and decisions.

Contributor 
Val Renault

Online Resources

Coalition Vision, Mission, and Goals defines SWOT Analysis, coalition vision and mission statements, and goals and strategies.

The Essential Guide to SWOT Analysis from Jackson Hille, content associate for FormSwift, a SF-based startup that helps organizations, entrepreneurs, and businesses go paperless.

Mind Tools: SWOT Analysis provides a quick overview of SWOT

Quality Guide: SWOT Analysis is a helpful guide from Management Sciences for Health and United Nations Children’s Fund.

Print Resources

David, F. (1993). Strategic Management, 4th Ed. New York, NY: Macmillan Publishing Company. 

Jones, B. (1990). Neighborhood Planning: A Guide for Citizens and Planners. Chicago and Washington, DC: Planners Press, American Planning Association.

 
Back to Lesson

Original document, SWOT Analysis: Strengths, Weaknesses, Opportunities, and Threats
Source: Community Tool Box
Adapted for Academy.Warriorrising

How Competitive Forces Shape Strategy

How Competitive Forces Shape Strategy

Awareness of these forces can help a company stake out a position in its industry that is less vulnerable to attack. by Michael E. Porter

Summary

Major contending forces, says this expert on business strategy, determine the state of competition in an industry: the threat of new entrants, the bargaining power of customers and of suppliers, the intense rivalry of competitors, and the threat of substitute services or products. Once the corporate strategist has assessed these forces, he can identify his own company’s strengths and weaknesses and act accordingly to put up the best defense against competitive assaults.

The essence of strategy formulation is coping with competition. Yet it is easy to view competition too narrowly and too pessimistically. While one sometimes hears executives complaining to the contrary, intense competition in an industry is neither coincidence nor bad luck.

Moreover, in the fight for market share, competition is not manifested only in the other players. Rather, competition in an industry is rooted in its underlying economics, and competitive forces exist that go well beyond the established combatants in a particular industry. Customers, suppliers, potential entrants, and substitute products are all competitors that may be more or less prominent or active depending on the industry.

The state of competition in an industry depends on five basic forces, which are diagrammed below. The collective strength of these forces determines the ultimate profit potential of an industry. It ranges from intense in industries like tires, metal cans, and steel, where no company earns spectacular returns on investment, to mild in industries like oil field services and equipment, soft drinks, and toiletries, where there is room for quite high returns.

In the economists’ “perfectly competitive” industry, jockeying for position is unbridled and entry to the industry very easy. This kind of industry structure, of course, offers the worst prospect for long-run profitability. The weaker the forces collectively, however, the greater the opportunity for superior performance.

Whatever their collective strength, the corporate strategist’s goal is to find a position in the industry where his or her company can best defend itself against these forces or can influence them in its favor. The collective strength of the forces may be painfully apparent to all the antagonists; but to cope with them, the strategist must delve below the surface and analyze the sources of each. For example, what makes the industry vulnerable to entry? What determines the bargaining power of suppliers?

Knowledge of these underlying sources of competitive pressure provides the groundwork for a strategic agenda of action. They highlight the critical strengths and weaknesses of the company, animate the positioning of the company in its industry, clarify the areas where strategic changes may yield the greatest payoff, and highlight the places where industry trends promise to hold the greatest significance as either opportunities or threats. Understanding these sources also proves to be of help in considering areas for diversification.

Contending Forces

The strongest competitive force or forces determine the profitability of an industry and so are of greatest importance in strategy formulation. For example, even a company with a strong position in an industry unthreatened by potential entrants will earn low returns if it faces a superior or a lower-cost substitute product—as the leading manufacturers of vacuum tubes and coffee percolators have learned to their sorrow. In such a situation, coping with the substitute product becomes the number one strategic priority.

Different forces take on prominence, of course, in shaping competition in each industry. In the ocean-going tanker industry the key force is probably the buyers (the major oil companies), while in tires it is powerful OEM buyers coupled with tough competitors. In the steel industry the key forces are foreign competitors and substitute materials.

Every industry has an underlying structure, or a set of fundamental economic and technical characteristics, that gives rise to these competitive forces. The strategist, wanting to position his or her company to cope best with its industry environment or to influence that environment in the company’s favor, must learn what makes the environment tick.

This view of competition pertains equally to industries dealing in services and to those selling products. To avoid monotony in this article, I refer to both products and services as “products.” The same general principles apply to all types of business.

A few characteristics are critical to the strength of each competitive force. I shall discuss them in this section.

Threat of entry.

New entrants to an industry bring new capacity, the desire to gain market share, and often substantial resources. Companies diversifying through acquisition into the industry from other markets often leverage their resources to cause a shake-up, as Philip Morris did with Miller beer.

The seriousness of the threat of entry depends on the barriers present and on the reaction from existing competitors that entrants can expect. If barriers to entry are high and newcomers can expect sharp retaliation from the entrenched competitors, obviously the newcomers will not pose a serious threat of entering.

There are six major sources of barriers to entry:

  • 1. Economies of scale: These economies deter entry by forcing the aspirant either to come in on a large scale or to accept a cost disadvantage. Scale economies in production, research, marketing, and service are probably the key barriers to entry in the mainframe computer industry, as Xerox and GE sadly discovered. Economies of scale can also act as hurdles in distribution, utilization of the sales force, financing, and nearly any other part of a business.
  • 2. Product differentiation: Brand identification creates a barrier by forcing entrants to spend heavily to overcome customer loyalty. Advertising, customer service, being first in the industry, and product differences are among the factors fostering brand identification. It is perhaps the most important entry barrier in soft drinks, over-the-counter drugs, cosmetics, investment banking, and public accounting. To create high fences around their businesses, brewers couple brand identification with economies of scale in production, distribution, and marketing.
  • 3. Capital requirements: The need to invest large financial resources in order to compete creates a barrier to entry, particularly if the capital is required for unrecoverable expenditures in up-front advertising or R&D. Capital is necessary not only for fixed facilities but also for customer credit, inventories, and absorbing start-up losses. While major corporations have the financial resources to invade almost any industry, the huge capital requirements in certain fields, such as computer manufacturing and mineral extraction, limit the pool of likely entrants.
  • 4. Cost disadvantages independent of size: Entrenched companies may have cost advantages not available to potential rivals, no matter what their size and attainable economies of scale. These advantages can stem from the effects of the learning curve (and of its first cousin, the experience curve), proprietary technology, access to the best raw materials sources, assets purchased at preinflation prices, government subsidies, or favorable locations. Sometimes cost advantages are legally enforceable, as they are through patents. (For an analysis of the much-discussed experience curve as a barrier to entry, see the sidebar “The Experience Curve as an Entry Barrier.”)
  • 5. Access to distribution channels: The newcomer on the block must, of course, secure distribution of its product or service. A new food product, for example, must displace others from the supermarket shelf via price breaks, promotions, intense selling efforts, or some other means. The more limited the wholesale or retail channels are and the more that existing competitors have these tied up, obviously the tougher that entry into the industry will be. Sometimes this barrier is so high that, to surmount it, a new contestant must create its own distribution channels, as Timex did in the watch industry in the 1950s.
  • 6. Government policy: The government can limit or even foreclose entry to industries with such controls as license requirements and limits on access to raw materials. Regulated industries like trucking, liquor retailing, and freight forwarding are noticeable examples; more-subtle government restrictions operate in fields like ski-area development and coal mining. The government also can play a major indirect role by affecting entry barriers through controls such as air and water pollution standards and safety regulations.

The potential rival’s expectations about the reaction of existing competitors also will influence its decision on whether to enter. The company is likely to have second thoughts if incumbents have previously lashed out at new entrants or if:

  • The incumbents possess substantial resources to fight back, including excess cash and unused borrowing power, productive capacity, or clout with distribution channels and customers.
  • The incumbents seem likely to cut prices because of a desire to keep market shares or because of industrywide excess capacity.
  • Industry growth is slow, affecting its ability to absorb the new arrival and probably causing the financial performance of all the parties involved to decline.

Changing conditions

From a strategic standpoint there are two important additional points to note about the threat of entry.

First, it changes, of course, as these conditions change. The expiration of Polaroid’s basic patents on instant photography, for instance, greatly reduced its absolute cost entry barrier built by proprietary technology. It is not surprising that Kodak plunged into the market. Product differentiation in printing has all but disappeared. Conversely, in the auto industry economies of scale increased enormously with post–World War II automation and vertical integration—virtually stopping successful new entry.

Second, strategic decisions involving a large segment of an industry can have a major impact on the conditions determining the threat of entry. For example, the actions of many U.S. wine producers in the 1960s to step up product introductions, raise advertising levels, and expand distribution nationally surely strengthened the entry roadblocks by raising economies of scale and making access to distribution channels more difficult. Similarly, decisions by members of the recreational vehicle industry to vertically integrate in order to lower costs have greatly increased the economies of scale and raised the capital cost barriers.

Powerful suppliers and buyers.

Suppliers can exert bargaining power on participants in an industry by raising prices or reducing the quality of purchased goods and services. Powerful suppliers can thereby squeeze profitability out of an industry unable to recover cost increases in its own prices. By raising their prices, soft drink concentrate producers have contributed to the erosion of profitability of bottling companies because the bottlers, facing intense competition from powdered mixes, fruit drinks, and other beverages, have limited freedom to raise their prices accordingly. Customers likewise can force down prices, demand higher quality or more service, and play competitors off against each other—all at the expense of industry profits.

The power of each important supplier or buyer group depends on a number of characteristics of its market situation and on the relative importance of its sales or purchases to the industry compared with its overall business.

A supplier group is powerful if:

  • It is not obliged to contend with other products for sale to the industry. For instance, the competition between the steel companies and the aluminum companies to sell to the can industry checks the power of each supplier.
  • It poses a credible threat of integrating forward into the industry’s business. This provides a check against the industry’s ability to improve the terms on which it purchases.
  • The industry is not an important customer of the supplier group. If the industry is an important customer, suppliers’ fortunes will be closely tied to the industry, and they will want to protect the industry through reasonable pricing and assistance in activities like R&D and lobbying.

A buyer group is powerful if:

  • 1. Forces Governing Competition in an Industry. This diagram shows that the state of competition in an industry depends on five basic forces which include: the actual jockeying for position among competitors, the bargaining power of suppliers, the threat of new entrants, the bargaining power of customers, and the threat of substitute products or services. See more HBR charts in Data & Visuals In the economists’ “perfectly competitive” industry, jockeying for position is unbridled and entry to the industry very easy. This kind of industry structure, of course, offers the worst prospect for long-run profitability. The weaker the forces collectively, however, the greater the opportunity for superior performance. Whatever their collective strength, the corporate strategist’s goal is to find a position in the industry where his or her company can best defend itself against these forces or can influence them in its favor. The collective strength of the forces may be painfully apparent to all the antagonists; but to cope with them, the strategist must delve below the surface and analyze the sources of each. For example, what makes the industry vulnerable to entry? What determines the bargaining power of suppliers? Knowledge of these underlying sources of competitive pressure provides the groundwork for a strategic agenda of action. They highlight the critical strengths and weaknesses of the company, animate the positioning of the company in its industry, clarify the areas where strategic changes may yield the greatest payoff, and highlight the places where industry trends promise to hold the greatest significance as either opportunities or threats. Understanding these sources also proves to be of help in considering areas for diversification. Contending Forces The strongest competitive force or forces determine the profitability of an industry and so are of greatest importance in strategy formulation. For example, even a company with a strong position in an industry unthreatened by potential entrants will earn low returns if it faces a superior or a lower-cost substitute product—as the leading manufacturers of vacuum tubes and coffee percolators have learned to their sorrow. In such a situation, coping with the substitute product becomes the number one strategic priority. Different forces take on prominence, of course, in shaping competition in each industry. In the ocean-going tanker industry the key force is probably the buyers (the major oil companies), while in tires it is powerful OEM buyers coupled with tough competitors. In the steel industry the key forces are foreign competitors and substitute materials. Every industry has an underlying structure, or a set of fundamental economic and technical characteristics, that gives rise to these competitive forces. The strategist, wanting to position his or her company to cope best with its industry environment or to influence that environment in the company’s favor, must learn what makes the environment tick. This view of competition pertains equally to industries dealing in services and to those selling products. To avoid monotony in this article, I refer to both products and services as “products.” The same general principles apply to all types of business. A few characteristics are critical to the strength of each competitive force. I shall discuss them in this section. Threat of entry. New entrants to an industry bring new capacity, the desire to gain market share, and often substantial resources. Companies diversifying through acquisition into the industry from other markets often leverage their resources to cause a shake-up, as Philip Morris did with Miller beer. The seriousness of the threat of entry depends on the barriers present and on the reaction from existing competitors that entrants can expect. If barriers to entry are high and newcomers can expect sharp retaliation from the entrenched competitors, obviously the newcomers will not pose a serious threat of entering. There are six major sources of barriers to entry: 1. Economies of scale. These economies deter entry by forcing the aspirant either to come in on a large scale or to accept a cost disadvantage. Scale economies in production, research, marketing, and service are probably the key barriers to entry in the mainframe computer industry, as Xerox and GE sadly discovered. Economies of scale can also act as hurdles in distribution, utilization of the sales force, financing, and nearly any other part of a business. 2. Product differentiation. Brand identification creates a barrier by forcing entrants to spend heavily to overcome customer loyalty. Advertising, customer service, being first in the industry, and product differences are among the factors fostering brand identification. It is perhaps the most important entry barrier in soft drinks, over-the-counter drugs, cosmetics, investment banking, and public accounting. To create high fences around their businesses, brewers couple brand identification with economies of scale in production, distribution, and marketing. Read more about How Amazon Thinks About Competition 3. Capital requirements. The need to invest large financial resources in order to compete creates a barrier to entry, particularly if the capital is required for unrecoverable expenditures in up-front advertising or R&D. Capital is necessary not only for fixed facilities but also for customer credit, inventories, and absorbing start-up losses. While major corporations have the financial resources to invade almost any industry, the huge capital requirements in certain fields, such as computer manufacturing and mineral extraction, limit the pool of likely entrants. 4. Cost disadvantages independent of size. Entrenched companies may have cost advantages not available to potential rivals, no matter what their size and attainable economies of scale. These advantages can stem from the effects of the learning curve (and of its first cousin, the experience curve), proprietary technology, access to the best raw materials sources, assets purchased at preinflation prices, government subsidies, or favorable locations. Sometimes cost advantages are legally enforceable, as they are through patents. (For an analysis of the much-discussed experience curve as a barrier to entry, see the sidebar “The Experience Curve as an Entry Barrier.”) The Experience Curve as an Entry Barrier In recent years, the experience curve has become widely discussed as a key element of industry structure. According ... 5. Access to distribution channels. The newcomer on the block must, of course, secure distribution of its product or service. A new food product, for example, must displace others from the supermarket shelf via price breaks, promotions, intense selling efforts, or some other means. The more limited the wholesale or retail channels are and the more that existing competitors have these tied up, obviously the tougher that entry into the industry will be. Sometimes this barrier is so high that, to surmount it, a new contestant must create its own distribution channels, as Timex did in the watch industry in the 1950s. 6. Government policy. The government can limit or even foreclose entry to industries with such controls as license requirements and limits on access to raw materials. Regulated industries like trucking, liquor retailing, and freight forwarding are noticeable examples; more-subtle government restrictions operate in fields like ski-area development and coal mining. The government also can play a major indirect role by affecting entry barriers through controls such as air and water pollution standards and safety regulations. The potential rival’s expectations about the reaction of existing competitors also will influence its decision on whether to enter. The company is likely to have second thoughts if incumbents have previously lashed out at new entrants or if: The incumbents possess substantial resources to fight back, including excess cash and unused borrowing power, productive capacity, or clout with distribution channels and customers. The incumbents seem likely to cut prices because of a desire to keep market shares or because of industrywide excess capacity. Industry growth is slow, affecting its ability to absorb the new arrival and probably causing the financial performance of all the parties involved to decline. Changing conditions. From a strategic standpoint there are two important additional points to note about the threat of entry. First, it changes, of course, as these conditions change. The expiration of Polaroid’s basic patents on instant photography, for instance, greatly reduced its absolute cost entry barrier built by proprietary technology. It is not surprising that Kodak plunged into the market. Product differentiation in printing has all but disappeared. Conversely, in the auto industry economies of scale increased enormously with post–World War II automation and vertical integration—virtually stopping successful new entry. Subscribe to our Monthly Newsletter Strategy & Execution The tools you need to craft strategic plans — and how to make them happen. Sign Up Second, strategic decisions involving a large segment of an industry can have a major impact on the conditions determining the threat of entry. For example, the actions of many U.S. wine producers in the 1960s to step up product introductions, raise advertising levels, and expand distribution nationally surely strengthened the entry roadblocks by raising economies of scale and making access to distribution channels more difficult. Similarly, decisions by members of the recreational vehicle industry to vertically integrate in order to lower costs have greatly increased the economies of scale and raised the capital cost barriers. Powerful suppliers and buyers. Suppliers can exert bargaining power on participants in an industry by raising prices or reducing the quality of purchased goods and services. Powerful suppliers can thereby squeeze profitability out of an industry unable to recover cost increases in its own prices. By raising their prices, soft drink concentrate producers have contributed to the erosion of profitability of bottling companies because the bottlers, facing intense competition from powdered mixes, fruit drinks, and other beverages, have limited freedom to raise their prices accordingly. Customers likewise can force down prices, demand higher quality or more service, and play competitors off against each other—all at the expense of industry profits. The power of each important supplier or buyer group depends on a number of characteristics of its market situation and on the relative importance of its sales or purchases to the industry compared with its overall business. A supplier group is powerful if: It is dominated by a few companies and is more concentrated than the industry it sells to. Its product is unique or at least differentiated, or if it has built up switching costs. Switching costs are fixed costs buyers face in changing suppliers. These arise because, among other things, a buyer’s product specifications tie it to particular suppliers, it has invested heavily in specialized ancillary equipment or in learning how to operate a supplier’s equipment (as in computer software), or its production lines are connected to the supplier’s manufacturing facilities (as in some manufacture of beverage containers). It is not obliged to contend with other products for sale to the industry. For instance, the competition between the steel companies and the aluminum companies to sell to the can industry checks the power of each supplier. It poses a credible threat of integrating forward into the industry’s business. This provides a check against the industry’s ability to improve the terms on which it purchases. The industry is not an important customer of the supplier group. If the industry is an important customer, suppliers’ fortunes will be closely tied to the industry, and they will want to protect the industry through reasonable pricing and assistance in activities like R&D and lobbying. A buyer group is powerful if: It is concentrated or purchases in large volumes. Large-volume buyers are particularly potent forces if heavy fixed costs characterize the industry—as they do in metal containers, corn refining, and bulk chemicals, for example—which raise the stakes to keep capacity filled.
  • 2. The products it purchases from the industry are standard or undifferentiated. The buyers, sure that they can always find alternative suppliers, may play one company against another, as they do in aluminum extrusion.
  • 3. The products it purchases from the industry form a component of its product and represent a significant fraction of its cost. The buyers are likely to shop for a favorable price and purchase selectively. Where the product sold by the industry in question is a small fraction of buyers’ costs, buyers are usually much less price sensitive.
  • 4. It earns low profits, which create great incentive to lower its purchasing costs. Highly profitable buyers, however, are generally less price sensitive (that is, of course, if the item does not represent a large fraction of their costs).
  • 5. The industry’s product is unimportant to the quality of the buyers’ products or services. Where the quality of the buyers’ products is very much affected by the industry’s product, buyers are generally less price sensitive. Industries in which this situation obtains include oil field equipment, where a malfunction can lead to large losses, and enclosures for electronic medical and test instruments, where the quality of the enclosure can influence the user’s impression about the quality of the equipment inside.
  • 6. The industry’s product does not save the buyer money. Where the industry’s product or service can pay for itself many times over, the buyer is rarely price sensitive; rather, he is interested in quality. This is true in services like investment banking and public accounting, where errors in judgment can be costly and embarrassing, and in businesses like the logging of oil wells, where an accurate survey can save thousands of dollars in drilling costs.
  • 7. The buyers pose a credible threat of integrating backward to make the industry’s product. The Big Three auto producers and major buyers of cars have often used the threat of self-manufacture as a bargaining lever. But sometimes an industry engenders a threat to buyers that its members may integrate forward.

Most of these sources of buyer power can be attributed to consumers as a group as well as to industrial and commercial buyers; only a modification of the frame of reference is necessary. Consumers tend to be more price sensitive if they are purchasing products that are undifferentiated, expensive relative to their incomes, and of a sort where quality is not particularly important.

The buying power of retailers is determined by the same rules, with one important addition. Retailers can gain significant bargaining power over manufacturers when they can influence consumers’ purchasing decisions, as they do in audio components, jewelry, appliances, sporting goods, and other goods.

 

Strategic action

A company’s choice of suppliers to buy from or buyer groups to sell to should be viewed as a crucial strategic decision. A company can improve its strategic posture by finding suppliers or buyers who possess the least power to influence it adversely.

Most common is the situation of a company being able to choose whom it will sell to—in other words, buyer selection. Rarely do all the buyer groups a company sells to enjoy equal power. Even if a company sells to a single industry, segments usually exist within that industry that exercise less power (and that are therefore less price sensitive) than others. For example, the replacement market for most products is less price sensitive than the overall market.

As a rule, a company can sell to powerful buyers and still come away with above-average profitability only if it is a low-cost producer in its industry or if its product enjoys some unusual, if not unique, features. In supplying large customers with electric motors, Emerson Electric earns high returns because its low cost position permits the company to meet or undercut competitors’ prices.

If the company lacks a low cost position or a unique product, selling to everyone is self-defeating because the more sales it achieves, the more vulnerable it becomes. The company may have to muster the courage to turn away business and sell only to less potent customers.

Buyer selection has been a key to the success of National Can and Crown Cork & Seal. They focus on the segments of the can industry where they can create product differentiation, minimize the threat of backward integration, and otherwise mitigate the awesome power of their customers. Of course, some industries do not enjoy the luxury of selecting “good” buyers.

As the factors creating supplier and buyer power change with time or as a result of a company’s strategic decisions, naturally the power of these groups rises or declines. In the ready-to-wear clothing industry, as the buyers (department stores and clothing stores) have become more concentrated and control has passed to large chains, the industry has come under increasing pressure and suffered falling margins. The industry has been unable to differentiate its product or engender switching costs that lock in its buyers enough to neutralize these trends.

Substitute products

By placing a ceiling on prices it can charge, substitute products or services limit the potential of an industry. Unless it can upgrade the quality of the product or differentiate it somehow (as via marketing), the industry will suffer in earnings and possibly in growth.

Manifestly, the more attractive the price-performance trade-off offered by substitute products, the firmer the lid placed on the industry’s profit potential. Sugar producers confronted with the large-scale commercialization of high-fructose corn syrup, a sugar substitute, are learning this lesson today.

Substitutes not only limit profits in normal times; they also reduce the bonanza an industry can reap in boom times. In 1978 the producers of fiberglass insulation enjoyed unprecedented demand as a result of high energy costs and severe winter weather. But the industry’s ability to raise prices was tempered by the plethora of insulation substitutes, including cellulose, rock wool, and styrofoam. These substitutes are bound to become an even stronger force once the current round of plant additions by fiberglass insulation producers has boosted capacity enough to meet demand (and then some).

Substitute products that deserve the most attention strategically are those that (a) are subject to trends improving their price-performance trade-off with the industry’s product, or (b) are produced by industries earning high profits. Substitutes often come rapidly into play if some development increases competition in their industries and causes price reduction or performance improvement.

Jockeying for position

Rivalry among existing competitors takes the familiar form of jockeying for position—using tactics like price competition, product introduction, and advertising slugfests. Intense rivalry is related to the presence of a number of factors:

  • 1. Competitors are numerous or are roughly equal in size and power. In many U.S. industries in recent years foreign contenders, of course, have become part of the competitive picture.
  • 2. Industry growth is slow, precipitating fights for market share that involve expansion-minded members.
  • 3. The product or service lacks differentiation or switching costs, which lock in buyers and protect one combatant from raids on its customers by another.
  • 4. Fixed costs are high or the product is perishable, creating strong temptation to cut prices. Many basic materials businesses, like paper and aluminum, suffer from this problem when demand slackens.
  • 5. Capacity is normally augmented in large increments. Such additions, as in the chlorine and vinyl chloride businesses, disrupt the industry’s supply-demand balance and often lead to periods of overcapacity and price-cutting.
  • 6. Exit barriers are high. Exit barriers, like very specialized assets or management’s loyalty to a particular business, keep companies competing even though they may be earning low or even negative returns on investment. Excess capacity remains functioning, and the profitability of the healthy competitors suffers as the sick ones hang on. If the entire industry suffers from overcapacity, it may seek government help—particularly if foreign competition is present.
  • 7.The rivals are diverse in strategies, origins, and “personalities.” They have different ideas about how to compete and continually run head-on into each other in the process.

An acquisition can introduce a very different personality to an industry, as has been the case with Black & Decker’s takeover of McCullough, the producer of chain saws. Technological innovation can boost the level of fixed costs in the production process, as it did in the shift from batch to continuous-line photofinishing in the 1960s.

While a company must live with many of these factors—because they are built into industry economics—it may have some latitude for improving matters through strategic shifts. For example, it may try to raise buyers’ switching costs or increase product differentiation. A focus on selling efforts in the fastest-growing segments of the industry or on market areas with the lowest fixed costs can reduce the impact of industry rivalry. If it is feasible, a company can try to avoid confrontation with competitors having high exit barriers and can thus sidestep involvement in bitter price-cutting.

Formulation of Strategy

Once having assessed the forces affecting competition in an industry and their underlying causes, the corporate strategist can identify the company’s strengths and weaknesses. The crucial strengths and weaknesses from a strategic standpoint are the company’s posture vis-à-vis the underlying causes of each force. Where does it stand against substitutes? Against the sources of entry barriers?

Then the strategist can devise a plan of action that may include (l) positioning the company so that its capabilities provide the best defense against the competitive force; and/or (2) influencing the balance of the forces through strategic moves, thereby improving the company’s position; and/or (3) anticipating shifts in the factors underlying the forces and responding to them, with the hope of exploiting change by choosing a strategy appropriate for the new competitive balance before opponents recognize it. I shall consider each strategic approach in turn.

Positioning the company

The first approach takes the structure of the industry as given and matches the company’s strengths and weaknesses to it. Strategy can be viewed as building defenses against the competitive forces or as finding positions in the industry where the forces are weakest.

Knowledge of the company’s capabilities and of the causes of the competitive forces will highlight the areas where the company should confront competition and where avoid it. If the company is a low-cost producer, it may choose to confront powerful buyers while it takes care to sell them only products not vulnerable to competition from substitutes.

The success of Dr Pepper in the soft drink industry illustrates the coupling of realistic knowledge of corporate strengths with sound industry analysis to yield a superior strategy. Coca-Cola and PepsiCola dominate Dr Pepper’s industry, where many small concentrate producers compete for a piece of the action. Dr Pepper chose a strategy of avoiding the largest-selling drink segment, maintaining a narrow flavor line, forgoing the development of a captive bottler network, and marketing heavily. The company positioned itself so as to be least vulnerable to its competitive forces while it exploited its small size.

In the $11.5 billion soft drink industry, barriers to entry in the form of brand identification, large-scale marketing, and access to a bottler network are enormous. Rather than accept the formidable costs and scale economies in having its own bottler network—that is, following the lead of the Big Two and of Seven-Up—Dr Pepper took advantage of the different flavor of its drink to “piggyback” on Coke and Pepsi bottlers who wanted a full line to sell to customers. Dr Pepper coped with the power of these buyers through extraordinary service and other efforts to distinguish its treatment of them from that of Coke and Pepsi.

Many small companies in the soft drink business offer cola drinks that thrust them into head-to-head competition against the majors. Dr Pepper, however, maximized product differentiation by maintaining a narrow line of beverages built around an unusual flavor.

Finally, Dr Pepper met Coke and Pepsi with an advertising onslaught emphasizing the alleged uniqueness of its single flavor. This campaign built strong brand identification and great customer loyalty. Helping its efforts was the fact that Dr Pepper’s formula involved lower raw materials cost, which gave the company an absolute cost advantage over its major competitors.

There are no economies of scale in soft drink concentrate production, so Dr Pepper could prosper despite its small share of the business (6%). Thus Dr Pepper confronted competition in marketing but avoided it in product line and in distribution. This artful positioning combined with good implementation has led to an enviable record in earnings and in the stock market.

Influencing the balance

When dealing with the forces that drive industry competition, a company can devise a strategy that takes the offensive. This posture is designed to do more than merely cope with the forces themselves; it is meant to alter their causes.

Innovations in marketing can raise brand identification or otherwise differentiate the product. Capital investments in large-scale facilities or vertical integration affect entry barriers. The balance of forces is partly a result of external factors and partly in the company’s control.

Exploiting industry change

Industry evolution is important strategically because evolution, of course, brings with it changes in the sources of competition I have identified. In the familiar product life-cycle pattern, for example, growth rates change, product differentiation is said to decline as the business becomes more mature, and the companies tend to integrate vertically.

These trends are not so important in themselves; what is critical is whether they affect the sources of competition. Consider vertical integration. In the maturing minicomputer industry, extensive vertical integration, both in manufacturing and in software development, is taking place. This very significant trend is greatly raising economies of scale as well as the amount of capital necessary to compete in the industry. This in turn is raising barriers to entry and may drive some smaller competitors out of the industry once growth levels off.

Obviously, the trends carrying the highest priority from a strategic standpoint are those that affect the most important sources of competition in the industry and those that elevate new causes to the forefront. In contract aerosol packaging, for example, the trend toward less product differentiation is now dominant. It has increased buyers’ power, lowered the barriers to entry, and intensified competition.

The framework for analyzing competition that I have described can also be used to predict the eventual profitability of an industry. In long-range planning the task is to examine each competitive force, forecast the magnitude of each underlying cause, and then construct a composite picture of the likely profit potential of the industry.

The outcome of such an exercise may differ a great deal from the existing industry structure. Today, for example, the solar heating business is populated by dozens and perhaps hundreds of companies, none with a major market position. Entry is easy, and competitors are battling to establish solar heating as a superior substitute for conventional methods.

The potential of this industry will depend largely on the shape of future barriers to entry, the improvement of the industry’s position relative to substitutes, the ultimate intensity of competition, and the power captured by buyers and suppliers. These characteristics will in turn be influenced by such factors as the establishment of brand identities, significant economies of scale or experience curves in equipment manufacture wrought by technological change, the ultimate capital costs to compete, and the extent of overhead in production facilities.

The framework for analyzing industry competition has direct benefits in setting diversification strategy. It provides a road map for answering the extremely difficult question inherent in diversification decisions: “What is the potential of this business?” Combining the framework with judgment in its application, a company may be able to spot an industry with a good future before this good future is reflected in the prices of acquisition candidates.

Multifaceted Rivalry

Corporate managers have directed a great deal of attention to defining their businesses as a crucial step in strategy formulation. Theodore Levitt, in his classic 1960 article in HBR, argued strongly for avoiding the myopia of narrow, product-oriented industry definition. Numerous other authorities have also stressed the need to look beyond product to function in defining a business, beyond national boundaries to potential international competition, and beyond the ranks of one’s competitors today to those that may become competitors tomorrow. As a result of these urgings, the proper definition of a company’s industry or industries has become an endlessly debated subject.

One motive behind this debate is the desire to exploit new markets. Another, perhaps more important motive is the fear of overlooking latent sources of competition that someday may threaten the industry. Many managers concentrate so single-mindedly on their direct antagonists in the fight for market share that they fail to realize that they are also competing with their customers and their suppliers for bargaining power. Meanwhile, they also neglect to keep a wary eye out for new entrants to the contest or fail to recognize the subtle threat of substitute products.

The key to growth—even survival—is to stake out a position that is less vulnerable to attack from head-to-head opponents, whether established or new, and less vulnerable to erosion from the direction of buyers, suppliers, and substitute goods. Establishing such a position can take many forms—solidifying relationships with favorable customers, differentiating the product either substantively or psychologically through marketing, integrating forward or backward, establishing technological leadership.

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Original document, How Competitive Forces Shape Strategy
Source: HBR
Adapted for Academy.Warriorrising

How to file a Tradeamark

How to File a Trademark

Protecting your business logo from creative theft is a crucial part of growing your brand. Here's how to file a trademark with the United States Federal Government.

Imagine spending extensive time, energy and finances on coming up with the perfect logo or design to represent your business. Then, consider how you would feel if your logo was appropriated by another business, perhaps your competition, and they claimed to have come up with the idea themselves. Wouldn’t you have wished there was some way to protect your business from creative theft?

Luckily, there is. The United States Patent and Trademark Office (USPTO), an agency of the Department of Commerce, provides businesses and individuals with the opportunity to file a trademark – a type of intellectual property, such as a word, phrase, symbol, domain name or design that identifies and distinguishes the goods of one merchant’s or manufacturer’s products from others – with the federal government to safeguard unauthorized use of your brand. A trademark can be useful to companies that want to build brand awareness by incorporating a unique symbol or design that allows consumers to associate a company’s product at the blink of an eye. For instance, Nike’s checkmark-like ‘swoosh,’ and the Coca-Cola company’s red and white logo are well-known images that help consumers distinguish their products from similar goods.

Similarly, a service mark, which is nearly the same as a trademark except it identifies and distinguishes the source of a service rather than a product, can also be filed with the USPTO. For example, Amazon.com is a popular e-tail site that is protected by a service mark, because the business uses the full name to promote their services on signs or in advertising copy.

The following guide will help you better understand how a mark qualifies for federal registration, the different types of trademarks, and how to go about filing them.

How to File a Trademark: Research Your Intended Mark

According to Christopher Schulte, partner and trademark attorney at the Minneapolis, Minnesota-based intellectual property law firm, Merchant & Gould, in order to successfully file a trademark for your business, your ownership over an idea or product has to be unique. An important step in making sure that your product or service is unique to other merchants’ is research, so that you don’t potentially get attacked later, he says.

‘The biggest reason [your mark won’t become registered] is that you’re too close to someone else – it’s called too ‘confusingly similar,'” Schulte says. ‘If you don’t search before you register, you might spend the money on filing trademark, or spend $5,000 for a sign on your door, and then later receive a letter from a lawyer telling you to stop.’

Besides a new mark being too similar to an existing mark, there are various other reasons why a new mark would be deemed ineligible. For instance, the USPTO will not register marks that contain the following: the name of a living person without their consent; the U.S. flag; various other federal and local government emblems; a name or likeness to a deceased U.S. President without his widow’s consent; words or symbols that vilify institutions, beliefs, national symbols, or living or deceased persons; marks that are deemed immoral or scandalous, although the USPTO takes a liberal stance on these grounds.


Dig Deeper: Conducting a Trademark Search

How to File a Trademark: The Trademark Electronic Application System (TEAS)

For about a decade, the USPTO has enabled businesses to file trademarks directly over the Internet, and with relative ease, by using the Trademark Electronic Application System, or TEAS. This Web-based method of filing is now the preferred way to apply for a federal trademark, and it is surprisingly user-friendly. (Coincidentally, for those business owners who wish to register using paper filing, it will cost you $375, which is $50 more than the TEAS system.)

In order for your application to be considered by the USPTO for trademark registration, you must include the following information with your request: name of the applicant filing the application, or the name of the owner of the mark; a name and address for correspondence; a clear drawing of the mark (TEAS will generate a proper drawing for you, based on the information you enter); a listing of the goods or services; and the filing fee for at least one class of goods or services.

The TEAS system is governed financially by what is called a ‘fee schedule,’ which underlines the various trademark processing fees. The application fee for the standard TEAS form is $325 per class of goods or services – for instance, computer software is Class 9, and a t-shirt is Class 25 – but there is a form called TEAS Plus that can be filed for $275 per class of goods or services, but the requirements for approval are much stricter. Payments can be made electronically, or with cash or check, and unfortunately, the USPTO will not refund the filing fees for rejected marks.

TEAS also supplies online links to visitors that provide help sections for each of the application fields, validation functions that work to help you avoid omitting pertinent registering information, and immediate e-mail receipts with the serial number and summary of your trademark submissions. Plus, over-the-phone help is available nearly 24 hours a day, seven days a week (except from 11 p.m. Saturday to 6 a.m. Sunday), in case you still can’t find what you are looking for.

Dig Deeper: How Trademarks Differ From Patents and Copyrights

 

How to File a Trademark: Types of Applications and Filing

Trademarks can be registered with either the Principal or Supplemental Registers maintained by the USPTO. Filing a trademark with the Principal, or primary, Register will grant you national recognition and protect you from infringement throughout the United States. Registering on the Supplemental, or secondary, Register, however, will only protect your mark as far as your common or state law. Nonetheless, holders of marks filed under the Supplemental Register may still sue for trademark infringement, if they so choose.

A business also has the opportunity to register a trademark based upon their planned use for it in the future, even if they are not using it in commerce at the time they register. According to Schulte, filing an ‘Intent-to-Use’ application will keep your mark ‘pending until you show you use it.’

In order to qualify for ‘Intent-to-Use,’ a business must plan to use the mark in commerce, and file an Allegation of Use statement, which allows a 30-day opposition period where other businesses may claim that your proposed mark is ‘confusingly similar’ to their own. If your trademark is deemed unique, your application process will be ‘Approved for Publication,’ and you will have to wait for a ‘Notice of Allowance’ to be issued until you can officially use your trademark.

While many business owners hire attorneys like Schulte to assist in registering trademarks to ensure that their marks pass the test of uniqueness, he says that businesses have the option of researching themselves, as well. Plus, since the U.S.’s federal system for registering trademarks has become so reliant on the TEAS system, businesses have never had an easier time researching for unique names and designs on their own.

Dig Deeper: Types of Trademarks

How to File a Trademark: Be Specific In Choosing Your Mark

Another common trademark filing mistake, says Dan Abramson, intellectual property consultant and president at the San Francisco-based consultancy firm, Informationism, is that a business will choose a mark that is too generic, and it won’t be accepted by the USPTO. He also recommends using the search function offered by the USPTO’s website to clear up any potential mishaps.

‘In trademark setting, the reason these people search is because it’s a cost-effective thing to do,’ Abramson says. ‘Companies get very antsy when they start seeing their mark become generic. [For example,] when the Beatles went and registered a mark on Apple Records, they couldn’t just register a generic term because apple is a fruit – they had to apply it to something, and they decided they wanted it on a record label.’

Dig Deeper: A Trademark Tale

How to File a Trademark: Jurisdiction of Trademark Registration

While filing a trademark with the Principal Register will grant you national recognition and protect you from infringement throughout the U.S., that protection will not automatically apply internationally. A mark on the Principal Register may be enough for the many small businesses who limit their commerce domestically, but for companies who wish to expand to a global market, additional certification is required.

The international trademark registration system is known as the Madrid system, and is administered by the World Intellectual Property Organization (WIPO), which is a specialized agency of the United Nations. The Madrid system offers businesses the possibility of filing one application through a person’s national or regional trademark office, and if a mark is accepted, it will be granted international protection.

 

Dig Deeper: Naming Your Business in the Information Age

 

How to File a Trademark: Renewing Your Trademark

Schulte says that one convenient aspect of filing a trademark with the U.S. federal system is that, unlike a patent, a trademark can be renewed. The process is also fairly simple: ‘After five years of your initial registration, you need to tell PTO, ‘Yes, it’s still in use,’ and prove use by sending in a label, for example,’ he explains.

After the initial renewal, your business is required to renew again once every 10 years for subsequent renewals, if you choose to keep your company’s trademark in affect. Today, the cost of renewal is $100 per class category that your mark is registered in, which can be a very cost-effective tool for maintaining your trademark over generations, for example.

Schulte adds, ‘You can get a monopoly on your brand name forever, unless you don’t use it, [which is] a rare thing, in a law.’

Dig Deeper: Trademark, Copyright & Patent Protection

Resources

If you are new to trademark filing, the USPTO Trademarks homepage is a great place to start learning the process, as it provides useful information for all of your trademark needs.

For more information on filing a trademark overseas, the International Trademark Association is a helpful not-for-profit membership association, representing members from more than 190 countries worldwide.

This state-by-state guide to trademark filing may be helpful for small businesses who want to keep it local.

Back to Lesson

Original document, How to File a Trademark
Source:https: INC
Adapted for Academy.Warriorrising

How to Protect Your Trademark From Infringement

How to Protect Your Trademark From Infringement

Keeping your trademark safe from infringement requires a consistent offense and a sturdy defense. Experts explain how to master both.

Protecting your trademark is like managing a winning sports team—you need both a good offense and a good defense.

The offense starts with choosing the business name, slogan, or logo that you want to, and will be able to, protect. It involves taking the time to identify a strong trademark or servicemark that will be hard for competitors to steal.

The defense comes once you have begun using your trademark—and involves three strategies:

  • Using your mark correctly
  • Monitoring for potential infringements, and
  • Cracking down on those who trespass on your trademark turf.

“It’s important to put time into this offensively, rather than adopting a mark that gets you into trouble and puts you on the defense,” says Sara R. Klein, an intellectual property attorney with TKlein Associates in Oakland, California, and an adjunct professor of law at John F. Kennedy University in Pleasant Hill, California.

Protecting Your Trademark: Choose a Strong Mark

When you launch a new business, service or product, pick a mark with the strongest possible legal status.

Generic terms like “hamburgers” are not protectable by trademark. Names that are descriptive—such as Speedy Bike Messengers—are potentially trademarkable, but are weak. You’d have a hard time defending them in court from a competitor who came up with a similar name.

Experts say you’ll get stronger protection with “suggestive” names—ones that indirectly and creatively convey the unique nature of your business, such as Coppertone for a suntan lotion, Pasta Pomodoro for an Italian restaurant chain, or Blu-ray for a laser disk player that uses blue-violet light.

“‘Blu-ray’ is a suggestive trademark since it makes people think of something to do with waves, rays, or light,” says Craig Albert, an intellectual property lawyer with Reitler Kailas & Rosenblatt in New York City.

The strongest level of trademark protection comes from marks that are considered “fanciful” or “arbitrary.”

Arbitrary marks are plain English words that are taken out of a completely different context, such as Apple as the name of a computer company or Blackberry as the name of a mobile phone.

 

Fanciful marks are names that are inherently distinctive because they’re made up. You can find them all over the pharmaceutical and technology industries—everything from Viagra and Prozac to Kodak and Verizon.

Key to choosing a good trademark is making sure that no one else is already using it. You can do a quick and easy search of registered trademarks on the web site of the U.S. Patent and Trademark Office. But that won’t show you common-law trademarks—businesses with the legal right to a name because they were the first to use it, even though they may never have registered it.

To be sure you’re not infringing on someone else’s trademark, consider spending about $1,000 for the services of a trademark search firm like Thomson CompuMark  or CT Corsearch.

“They’ll do a better search than you could on your own, including look-alike and sound-alike names, common law marks, phone books, Dun & Bradstreet directories, and the web,” Albert says.

Dig Deeper: How to File a Trademark

Protecting Your Trademark: Use It or Lose It

Once you’ve got a trademark—either through common-law use or registration—you need to protect it by using it.

Pay your renewal fees to the USPTO every five or 10 years as required. Also, be sure to display the sign of your trademark—a little R in a circle for federally-registered marks, TM for common-law trademarks, and SM for common-law servicemarks—on your products and marketing materials.

You don’t need to include that little TM or R every single time you mention your company’s name. But you need to display it a lot, particularly in prominent places. An example? Check out the home page of Starbucks. It has that little R right next to its mermaid logo at the top of the page. Farther down, there’s a TM next to the company’s Pike Place Roast and another R next to its VIA instant coffee.

“The big guys tend to use the little R logo about 50 percent of the time they display their registered mark,” Albert says. “Put it wherever you have a big display. The basic idea is that someone should see it if they’re reading an ad or a body of copy for your business. It’s to alert the public to what is your registered mark.”

Tsan Abrahamson, an intellectual property lawyer with Cobalt LLP in Berkeley, California,  advises her clients to include trademark language on all their packaging and publications, including websites.

“We often suggest language below the fold of the Web page or on the back of publications that says, “X is a trademark or registered trademark of company Y,'” Abrahamson says.

 

Dig Deeper: Whose Brand is It Anyway?

Protecting Your Trademark: Beware the Escalator Fate

Many aspiring entrepreneurs dream of turning their brand into a household word. But watch what you wish for—if your trademark becomes the generic word for a kind of product, you could lose your ownership of it.

That was the fate of words like “escalator” (originally a trademark of Otis Elevator Co.), “zipper” (B.F. Goodrich), “aspirin,” and even “heroin” (both Bayer AG). Today companies like Kleenex and Xerox struggle to avoid such a fate through marketing campaigns aimed at reminding the public that they are a brand, not a product category.

“The company most notorious for making sure you don’t genericize their mark is Xerox, which insists that people use a Xerox copy machine, they don’t ‘make a Xerox,'” says Albert.

This kind of “household word” problem isn’t likely to become an issue for most small businesses. But you can forestall the possibility of trouble down the line by using your trademark as an adjective rather than a noun.

 

“You don’t want to say ‘Buy Rollerblades,'” Abrahamson said. “Instead, say ‘Buy Rollerblade in-line skates.'”

Dig Deeper: What Happened to Your Patent Application?

 

Protecting Your Trademark: Police Your Mark

It’s best to consistently monitor other companies’ use of phrases or images similar to yours so you can nip any trademark infringements in the bud.

Some monitoring will likely happen naturally in the daily course of business as you watch what your competitors are doing. “If you’re a small business, keep your eyes open for things that might confuse consumers about your mark,” says Klein.

You can also check for infringements yourself with Google Alerts or other search engines. Instruct Google Alerts to notify you on an ongoing basis about news stories and web sites that mention your trademark, misspelled versions of your trademark, and phrases similar to your trademark.

 

“A business called Newark Pizza Kitchen might be looking for misspellings of Newark or names like Jersey Pizza Kitchen,” says Albert.

Meanwhile, trademark search firms like Thomson CompuMark provide an even more comprehensive monitoring service for as little as $500 per year, according to Abrahamson.

“They’ll police both domestic and international trademark registrations as well as domain registrations, and alert you to companies using marks that are similar or identical to yours,” she says.

Dig Deeper: How to Protect Your Invention

Protecting Your Trademark: Enforce your Mark

If you find a possible infringement, you’ll need to decide whether to go after the violator—and how aggressively to do so. This should partly depend on the strength of your trademark and thus the likelihood of winning your case. For most small businesses, it’s also a matter of budget and resources.

Abrahamson recommends developing a hierarchy of which kinds of violations are most threatening to your business—and doing this long before you actually run into any conflicts.

 

“Let go of those things you can let go of,” she advises. “Say you have a restaurant called Sally’s Roadhouse and you see someone selling Sally’s Jelly to grocery stores. Think about whether you are ever going to be a restaurant like Trader Vic’s that sells salad dressings, or if you’re someone who is never going to sell to stores.”

When you need to enforce your mark, have your lawyer draft a cease-and-desist letter. Even here, you have choices about tone—how severe or how open to compromise.

“If a client says, ‘I just don’t have the money to sue them,’ that will inform the manner in which we write the letter,” Abrahamson says. “We’ll ask (the infringer) to stop, but we’ll be ready to live with a coexistence agreement, such as an agreement that they won’t go into our client’s geographic area.”

If you let infringements of your trademark continue without any response at all, you risk losing the legal right to that mark.

“You have to follow up to make sure some action is taken,” says Albert. “If you don’t take it seriously, the courts won’t take it seriously.”

Dig Deeper: How to File for a Patent

 
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Original document, How to Protect Your Trademark From Infringement
Source:https: INC
Adapted for Academy.Warriorrising

How to Develop Your Brand Strategy

How to Develop Your Brand Strategy

When developing a brand strategy, identify three core components of your business to use as a blueprint for marketing tactics:

  • Purpose: This explains why you are in business and the specific customer needs you fulfill.
  • Consistency: Be able to define what allows you to provide your services day in and day out.
  • Emotional Impact: This is what helps form a bond or a connection between you and your customers. A brand strategy should develop this impact and build upon it.

In addition to understanding and defining these components of your business, you need to determine your target audience, identify your competition, decide on a mix of products and services on which to focus and establish a unique selling proposition.

By identifying the key components of your business and the focus of your marketing plan, you have the basis for crafting your brand strategy. An effective branding process creates a unique identity that differentiates you from the competition and can be the heart of a competitive strategy.

Developing a brand strategy can be one of the most difficult steps in your overall marketing plan, but it is important because your brand identity is communicated frequently and consistently in multiple ways throughout the life of your business.

Consider six tips for creating your brand strategy.

I’m Daniel Piechnick, a professional web designer.

I wrote this beginner’s guide to help the large number of people who want to create a website (or blog), but have absolutely no idea of what to do.

In Website Setup Guide, I show you exactly how to set up a proper, normal website with a .com (or .ca, .uk or .au) domain name, from start to finish. You don’t need to know anything about computers or websites, to follow this guide and make a website of your own.

Creating a website and running it this way will cost you about $3-4 per month in total. The information in this site is all free.

Since 2009, Website Setup Guide has helped more than three million people around the world set up successful websites and blogs. Most major web design sites now follow the format and recommendations of this site, and an entire industry of copycat sites and videos based on Website Setup Guide has appeared. However, this site remains the simplest and best place to go to set up your first website.

It’s easy to create a website by following this guide, but if you ever get stuck, you can email me, and I’ll be happy to help.

Why Branding Is Important

Customers identify with specific brands for a variety of reasons. Good products or services at a good price are common reasons, but what drives customers goes beyond that. For example, environmentally conscious consumers might be willing to spend a little bit more to buy from green companies that commit financially and otherwise to reducing carbon footprints.

Don’t lose sight of your primary focus. If you manufacture widgets, your company needs to be about manufacturing widgets, but you also can be about more than just that. Determine what that is, then communicate to customers why it is important to you. If it is important to them too, you might gain their business.

How To Define Your Brand

By defining what your brand is you create the foundation upon which all other components are built. Your brand definition serves as your measuring stick in evaluating ​marketing materials and strategies—from what your office looks like to what your ad says to the color and font of your business cards to the design of your website.

Determining Your Brand's Objectives

Critical to effective brand management is the clear definition of the brand’s audience and the objectives that the brand needs to achieve. Ask yourself two key questions to help determine your brand objectives:

What is it that you want your brand to do for your company?
What do you want others to know and say about your products or services?

Focusing on Your Target Audience

The power of your brand relies on the ability to focus. That is why defining your target market will help to strengthen your brand’s effectiveness.

The key is knowing who your target market is. Zero in on your target audience by asking yourself:

How old are they?
What is their income range?
What are their occupations?
What other interests do they have?

Discovering and Crushing Your Brand Barriers

When creating your brand strategy for a product or service it is important to perform a careful analysis to spot potential barriers. These barriers also are known as market conditions, and they can keep your product or service from being successful.

Brand Packaging and Identity

Branding is as identifiable to your customers as your face is to friends and family. It’s how people see you in the marketplace. Is yours saying what it should? Your company image is all about the appearance of your packaging. What is your company image saying (i.e., conveying) to the marketplace? If your packaging doesn’t uniquely represent your ​business, change your packaging.

Branding = Purpose

Branding often is seen as confusing or not important to top-level executives because it’s difficult for them to see the tangible benefits. Operating without a brand strategy is a recipe for accepting anything. Even for a small business, this can be dangerous. Without a brand, a business lacks an identified purpose. And without a purpose, a business can’t stand out from the competition.

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Original document, How to Develop Your Brand Strategy
Source:https: live about dotcom
Adapted for Academy.Warriorrising

8 Big Data Solutions for Small Businesses

8 Big Data Solutions for Small Businesses

It’s hard to escape the talk about big data nowadays. Companies that are armed with actionable information can more effectively market to customers, design and manufacture products, increase revenue, streamline operations, and better manage inventory to hold the line on related costs.

To successfully compete in today’s marketplace, small businesses need the tools larger companies use. While small businesses don’t have all the resources of an enterprise-level corporation, there are many ways your small business can gather, analyze and make sense of the data you already have. To that end, we’ve put together the following primer on big data, as well as eight big data solutions that work for small businesses.

Editor’s note: Looking for CRM software for your business? If you’re looking for information to help you choose the one that’s right for you, use the questionnaire below to receive information from vendors for free:

What is big data?

Big data refers to information too large or complex for traditional data processing methods to analyze. At its core, big data is still data; however, its overwhelming volume and complexity requires specialized tools for analysis. Additionally, big data grows in size exponentially, requiring forward-thinking solutions for managing, storing, parsing and analyzing the information. 

Big data is typically associated with the “three V’s”: volume, velocity and variety. These V’s take data beyond the traditional sphere of data analysis to the world of big data. 

To better understand this definition, consider the three essential V’s of big data:

Volume: Unstructured data received in large amounts, such as Twitter data feeds, can sometimes comprise terabytes or petabytes of storage space. (For comparison, a Word document often takes up no more than a few dozen kilobytes.)

Velocity: As internet use grows, businesses receive more data at once, which means they require more processing capacity. As a business gains more users, the amount of data from each user also quickly scales.

Variety: Think of the diversity of extensions among the files in your database — MP4, DOC, HTML and more. The more extensions you see, the more varied your data.

As the field of big data continues to mature, the nature of the subject continues to evolve. Oracle, for instance, notes that two other V’s have recently emerged in the field of big data: value, as in what value does this data add to business decisions, and veracity, as in how truthful is the data.

Despite the number of V’s, the core of big data has remained the same: using larger, more complex data sets to allow for the discovery of patterns, trends and other key pieces of information that would not be discoverable through smaller, more traditional data sets. 

8 big data solutions and how they work

These are some of today’s most prominent big data solutions:

1. SAS

A business’s size is no longer an obstacle to obtaining market and business intelligence, according to SAS, a leader in business analytics software and services since 1976. SAS transforms your data into insights that help inform decision-making and give a fresh perspective on your business, whether it’s a small, midsize or large organization.

Small and midsize businesses (SMBs) face many of the same challenges as large enterprises. SAS’s easy-to-use analytics, automated forecasting and data mining enable businesses without a lot of resources to accomplish more with less. These analytics help companies overcome challenges to grow and compete. SAS’s message to SMBs is simple: “Identify what’s working and fix what isn’t. Make more intelligent decisions.” Contact SAS for details, pricing and to learn about its free software trials.

2. Alteryx

Analyzing complex business intelligence doesn’t have to be rocket science. Alteryx offers advanced data mining and analytics tools that present information in a simple, understandable way.

Alteryx combines your business’s internal data with publicly available information to help you make better business decisions. These insights allow you to create graphs, storylines and interactive visuals from the dashboard. It also offers collaboration features that enable team discussion.

In addition to business data, Alteryx can provide department-specific data, including marketing, sales, operations and customer analytics. The platform also covers a wide variety of industries, such as retail, food and beverage, media and entertainment, financial services, manufacturing, consumer packaged goods, healthcare, and pharmaceuticals. Contact the company for pricing information.

3. Kissmetrics

Looking to increase your marketing ROI? Kissmetrics enables you to understand, segment and engage your customers based on their behavior.

With Kissmetrics, you can create, manage and automate the delivery of single-shot emails and ongoing email campaigns based on customer behavior. The platform measures campaign impact beyond opens and clicks. The company also has Kissmetrics for E-Commerce, which is designed to increase your Facebook and Instagram ROI, reduce cart abandonment rates, and drive more repeat purchases.

As a Kissmetrics user, you can access web-based training and educational resources to improve your marketing campaigns, including marketing webinars, how-to guides, articles and infographics. As part of your onboarding, you get a dedicated customer success representative for the first 60 days and strategic guidance to help you get the most out of the platform. Plans start at $300 per month.

4. InsightSquared

With InsightSquared, you don’t have to waste time mining your own data and arduously analyzing it with one spreadsheet after another. , InsightSquared connects to popular business solutions you probably already use — such as Salesforce, QuickBooks, Google Analytics and Zendesk — to automatically gather data and extract actionable information.

For instance, using data from CRM software, InsightSquared can provide a wealth of sales intelligence, such as sales and pipeline forecasting, lead generation and tracking, profitability analysis, and activity monitoring. It can also help you discover trends, strengths and weaknesses, and sales team wins and losses.

InsightSquared’s suite of products also includes marketing, financial, staff and support analytics tools, as well as custom reporting to let you slice and report data from any source in any way you choose. InsightSquared offers a free trial, and its service plans are modular and scalable. Contact InsightSquared for pricing.

5. Google Analytics

You don’t need expensive software to begin gathering data. Start with an asset you already have — your website. Google Analytics, Google’s free digital analytics platform, gives small businesses the tools to analyze website data from all touchpoints in one place. 

With Google Analytics, you can extract long-term data to reveal trends and other valuable information to help you make wise, data-driven decisions. For instance, by tracking and analyzing visitor behavior — such as where traffic is coming from, how audiences engage, and how long visitors stay on your website (known as your bounce rate) — you can make better decisions to meet the goals of your website or online store.

You can also analyze social media traffic and make any needed changes to your social media marketing campaigns based on what is and isn’t working. Studying mobile visitors can help you extract information about customers browsing your site on their mobile devices so you can provide a better mobile experience. Here’s how to sign up for Google Analytics for your website.

6. IBM Cognos Analytics

While many big data solutions are built for extremely knowledgeable data scientists and analysts, IBM’s Cognos Analytics makes advanced and predictive business analytics accessible to small businesses. The platform doesn’t require any skills in using complex data mining and analysis systems; it automates the process for you instead. This self-service analytics solution includes a suite of data access, refinement and warehousing services, giving you the tools to prepare and present data yourself in a simple and actionable way to guide your decisions.

Unlike the many analytics solutions that focus on one area of business, IBM Cognos Analytics unifies all your data analysis projects into a single platform. You can use it for all types of data analysis, including marketing, sales, finance, human resources and other parts of your operations. Its “natural language” technology helps you identify problems, recognize patterns, and gain meaningful insights to answer key questions, like what drives sales, which deals are likely to close, and how to make employees happy. Contact IBM for pricing information.

7. Tranzlogic

It’s no secret that credit card transactions are chock-full of invaluable data. Although access was once limited to companies with significant resources, customer intelligence company Tranzlogic makes this information available to small businesses that lack a big business’s budget.

Tranzlogic works with merchants and payment systems to extract and analyze proprietary data from credit card purchases. You can use this information to measure your sales performance, evaluate your customers and customer segments, improve promotions and loyalty programs, launch more effective marketing campaigns, write better business plans, and perform other tasks that lead to smart business decisions.

Tranzlogic requires no tech smarts to get started. It’s a turnkey program, meaning no installation or programming is necessary. All you need to do is log into your merchant portal. Contact Tranzlogic for pricing information.

8. Qualtrics

If you don’t currently have any rich sources for data, research may be the answer. Qualtrics lets you conduct a wide variety of studies and surveys to gain quality insights for data-driven decisions. Plus, the company offers Qualtrics Experience Management (Qualtrics XM), four applications that allow you to improve and manage the experiences your business provides to every stakeholder — customers, employees, prospects, users, partners, suppliers, citizens, students and investors.

Qualtrics XM helps you measure, prioritize and optimize the experiences you provide across the four foundational experiences of business: customer, employee, brand and product experience. Additionally, Qualtrics offers real-time insights, survey software, advertising testing, concept testing and market research programs. The company can also help you conduct employee surveys, exit interviews and reviews. Contact Qualtrics to discuss pricing.

The value of big data for business

Big data offers a wide range of possible values to a business, depending on the type of information collected. Essentially, big data acts as a force multiplier. With enough of the correct type of data, businesses can more accurately predict — and respond to — certain business use cases across a wide range of areas. 

Big data is a constantly evolving field, with new benefits frequently being discovered. Here are some of the many use cases for big data: 

  • Product development
  • Machine learning and automation
  • Fraud monitoring
  • Proactive customer retention measures

Big data can achieve the above benefits because it can, among many other functions, help accomplish the following:

  • Quickly uncover the causes behind issues, defects and failures.
  • Discover market and customer trends and conduct business market analysis, as opposed to relying on gut instinct.
  • Instantly create coupons at the point of sale based on a customer’s buying habits.
  • Rapidly recalculate an entire risk portfolio.
  • Identify fraudulent or malicious cyber activity before its worst consequences can occur.

At the most basic level, big data can help a business improve operations across any field. Whether it’s used to reduce inefficiency, better highlighting data for customer retention, identifying or combatting fraud, or something else altogether, big data allows a business to see the trends and gather the necessary insights.

Using big data

Big data can improve the overall efficiency and effectiveness of a business. Now that online solutions are becoming essential to daily life, there is no shortage of data for businesses to use. Businesses need to ensure, though, that the platform they select is compatible with their overall business needs. 

Now that you know more about big data, read about how big data differs from customer relationship management and how both can help your small business. 

Jeremy Bender and Max Freedman contributed to the writing and research in this article.

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Original document, 8 Big Data Solutions for Small Businesses
Source:https: Business News Daily
Adapted for Academy.Warriorrising

21 Free Tools Your Small Business Should Be Using Today

21 Free Tools Your Small Business Should Be Using Today

If anyone has to watch the bottom line, it’s a small business. To help, we have compiled this list of 21 free software tools that can help your company achieve its big dreams, without breaking the bank.

Running a small business can be an expensive endeavor. You might be one of those lucky entrepreneurs who can afford to take risks, but it’s more realistic to think you’re like most small business owners, meaning you carefully review all critical decisions your team wants to make. Choosing and using the best software for your business is no different. To help you, we’ve put together a list of 21 free tools that your small business should be using. Fortunately, all of the software mentioned offer premium (read: paid) plans to which you can upgrade once your small business outgrows the free plans. So don’t be shy: Be sure to check out the products on this list, even if you plan to eventually scale out of the small business category.

1. Website Builder from Wix

If your small business needs a website (and the answer to that for most businesses is a resounding “yes, it does”) and your website building needs are basic, then try using a free website builder such as Wix, which offers a free account. Wix can help you create a full-featured, mobile-friendly website that won’t break your budget. After using the free plan for a while, if you realize that your business would really benefit from all the features a web hosting provider can provide you, then you can opt for a paid web hosting service such as HostGator Web Hosting.

2. Virtual Private Network from CyberGhost

Small businesses that concerned about security (and you should be) need to implement personal virtual private network (VPN) services. These services hide online activity from snoops, and limits who can and can’t access network content. Most VPNs are pay-to-play but there are a few services, such as CyberGhost ($2.19 Per Month + 2 Months Free (83% Off 2 Year Plan) at CyberGhost VPN) , that give you a bit of protection at no cost.

CyberGhost is the best free VPN service on the market. It offers reliable connection speeds and excellent network security, plus it works on most modern operating systems (OSes). It’s somewhat difficult to configure, especially for really small businesses; and if you need Mac or Linux support, you’ll need to upgrade to the paid version. But if you just need something simple, easy, and free, then CyberGhost is a great tool.

3. Endpoint Protection from Avast

What’s the point of growing a business if it can be shut down by viruses or hackers? Avast’s endpoint protection comes in a free and a premium version, both of which protect your network well.

If you opt for the free version, keep in mind that you won’t have access to proactive controls, a firewall, or data shredding. However, you’ll still get access to solid malware blocking, security scanning, and rescue disk functionality—all of which will come in handy at some point.

4. Project Management from Wrike

Wrike’s (Visit Site at Wrike) project management solution is one of the best on the market regardless of which tier you choose. The free version supports up to five users, an unlimited number of collaborators, and 2 GB of free storage. With this plan, you can manage tasks, share files, and monitor your group’s activities in a real-time feed.

If you need customizations and reporting, you’ll have to upgrade to a higher tier. But if you’re just getting started and your team is small, the free project management tool will be perfect for you.

5. Video Conferencing from join.me

If you’re looking to connect with clients, prospects, and remote workers, you’ll need a reliable video conferencing solution to help you get the job done. Join.me offers a free plan that lets you invite up to 10 video participants, share screens, and supports up to five video feeds.

Join.me isn’t the most robust offering on the market, but it’s definitely a strong competitor among the free solutions. If you don’t have money to spend, and you need the cream of the free crop, try join.me.

6. Applicant Tracking from Zoho Recruit

Small businesses that don’t have job openings often will love Zoho Recruit ($25 Per User Per Month, Billed Annually at Zoho Recruit) . This applicant tracking tool gives you access to one recruiter and up to five open positions at once. You’ll be able to input, publish, and track jobs until you find the right candidate for your company’s specific needs.

You’ll also be able to send emails to applicants via five free email templates, which will make your life easier if you have to send the same (or similar) messages over and over again.

7. Human Resources Management from Deputy

Once you’ve found the right candidate, you’ll need to track his or her progress via a human resources (HR) management tool. Deputy (Visit Site at Deputy) offers a starter plan that costs just $1 per employee per month. Yes, I know, this isn’t free. But at only $1 per month, it’s an incredibly solid investment.

Deputy will allow you to schedule employee shifts, make company announcements, and manage tasks, all within one easy-to-use tool. Unfortunately, at this price tier, you won’t be able to add timesheets or payroll integration. For that, you’ll have to spend an extra $2 per employee per month.

8. Accounting from Wave

Your employees definitely want to get paid. So does your landlord and your utilities provider. To keep your books balanced, you can use Wave . With the free version of Wave, you’ll receive accounting and reports functionality, you’ll be able to create and scan invoices, and you’ll be able to scan receipts directly into the system.

No, this isn’t a one-stop shop for all of your bookkeeping needs. But if you keep things simple, you’ll be able to get pretty far using this basic service. For things such as payments and automatic integration with direct deposit payroll, you’ll have to pay $19 month.

9. Business Planning from EquityNet

If your company is still looking to lure investors, EquityNet (199.00 Starting Price at EquityNet) offers a free crowdfunding platform that will help you plan, analyze, and share your business plan with investors. You’ll create your plan using EquityNet’s plan and analysis software, and you’ll publish it onto the website and share it with anyone who is willing to read your pitch.

Although this is more of a funding tool than a planning tool, the software is good enough to get you through the initial ideation stages (and, who knows, you might even get lucky and find a deep-pocketed investor).

10. Social Media Listening fro10. Social Media Listening from HootSuitem HootSuite

Most small businesses don’t need a mega social listening platform. A free, easy-to-use dashboard that lets you stay up-to-date on what your customers are saying should be enough. Fortunately, Hootsuite ($99 Per Month at HootSuite) offers a free version of its software that’s good enough to do the trick.

With HootSuite Free, you’ll be able to manage multiple social networks, schedule posts, and interact with your followers. You’ll also be able to track how many followers you have on each of your social networks and monitor which posts are generating the most clicks. If your business grows, you can move up to one of three premium plans, which give you access to additional profiles, analytics, and multiple users.

11. Email Marketing from MailChimp

MailChimp (Visit Site at Mail Chimp) is one of the best and most popular email marketing platforms on the market. Service tiers are priced depending on how many emails you send per month. If your company sends fewer than 12,000 email messages per month to fewer than 2,000 subscribers, you’ll absolutely love MailChimp’s Forever Free plan.

This steal of a deal lets you use built-in signup forms to gather subscribers from across the web. You can use MailChimp’s drag-and-drop designer and email templates to craft the perfect message. You won’t get robust reporting on the Forever Free plan, but you’ll be able to check open rates and compare them to the average company in your industry. Not bad for zero dollars.

12. Data Visualization from Tableau Public

If you need a data visualization tool but you don’t have the coin to spend on Tableau Desktop (Visit Store at Tableau) , then you should try Tableau Public. Public is essentially the same as the full Tableau Desktop product, except you won’t be able to pull information from as many data sources as the paid version, and anything you create will be saved to a public version of Tableau’s cloud.

This product gives you access to live dashboards, responsive visuals that can be created and seen on mobile devices, and access to Google and Microsoft document managers. You can even share your visuals on Facebook, LinkedIn, and Twitter.

13. Business Intelligence from Microsoft Power BI

Microsoft Power BI (Visit Site at Microsoft Power BI) is available in a paid and free version for self-service business intelligence (BI). The free version limits you to 1 GB per user, which you can pay to increase to 10 GB. With this plan, your data will refresh daily, you’ll be able to scan 10,000 rows of data per hour, and you’ll be able to publish to the web.

To consume live data sources, scan millions of rows of data, or access data on a physical server, you’ll need to upgrade to Power BI Pro, which is still reasonable at $10 per user per month. The Pro version of this software also provides you with ways to collaborate with coworkers on visualizations across environments such as Microsoft Office 365.

14. Document Management from Zoho Docs

Zoho Docs is an ideal document management solution for small businesses with light document workloads. In addition to plug-ins to the rest of Zoho’s software ecosystem, the Zoho Docs free plan is available for up to 25 users and includes 5 GB of storage per user.

The free plan also includes unlimited file and folder sharing, desktop sync, editing tools, user management, and version history. You’ll also be able to integrate with Dropbox and turn on two-factor authentication (2FA) for added security. Plus, each document provides you with in-app chat so you can collaborate in real time.

15. Helpdesk Software from Zoho Desk

Zoho also makes the list with its feature-rich helpdesk software Zoho Desk ($14 Per User Per Month, Billed Annually at Zoho Desk) . The free version provides your service team with different work modes, a customizable help center, a knowledge base, community forums, and the ability to rebrand the visuals to suit your company’s needs.

If your helpdesk needs are a bit more complex, then you’ll want to upgrade to the $12-per-user-per-month Pro version or the $25-per-user-per-month Enterprise version, which adds features intended for larger organizations.

16. E-Commerce Software from X-Cart

For companies that have products to sell but don’t have much money to design a complex online shopping cart, X-Cart ($29.95 at X-Cart) is a powerful solution. X-Cart 5, which is the name of the free version, offers advanced features such as newsletters, social-commerce sharing, and a sitebuilder for tweaking themes. X-Cart provides free core upgrades and free extensions such as ShipStation to generate shipping labels, Magic Slideshow to create a slideshow on the site, and Diib Analytics.

Keep in mind: You’ll need a bit of technical prowess to get started with X-Cart 5. It’s not a plug-and-play e-commerce tool, so be sure to have a handy IT person around to walk you through your setup.

17. eLearning Authoring from H5P

Although H5P (0.00 Starting Price at H5P) isn’t the most powerful eLearning authoring tool on the market, this open-source software is an excellent starter option if you’re just dipping your toe into the content authoring field, or if you don’t have budget to dedicate to a more powerful tool.

Course creation can be done via 20 different course creation architectures. However, the only free-form course architecture is the Course Presentation option. This is similar to a Microsoft PowerPoint architecture, although, unlike other tools, it doesn’t use the exact Microsoft PowerPoint format. You’ll be able to insert text, images, videos, and questions. Buttons are clearly marked and subsequent steps are clearly articulated. This is one of the easier tools with which to create a course (even using the most complex format, namely, the Course Presentation architecture). Other content types include Image Hotspots, Interactive Video, Summaries, Timelines, and several quiz formats, including Arithmetic, Memory Card, Multiple Choice, and Short Answer quizzes.

 

18. Document Scanning from Evernote Scannable

Scannable ($0.00 at Apple.com) , which is a new app from Evernote ($0.00 at Apple.com) , quickly scans stacks of business cards, notes from a meeting, and documents by using nothing more than your smartphone and its camera. When you scan multiple documents in one session, each one is treated as a separate note in Evernote rather than as one note with several images embedded. This is a great idea for receipts and business card organization.

The app also connects to LinkedIn for added networking context as it parses text extremely well. Because the tool connects to the cloud, sharing documents is as easy as sharing a photo on your phone’s hard drive.

19. Online Survey Software from SurveyGizmo

There’s no better way to take the proverbial temperature of your customer base than with an online survey tool. SurveyGizmo’s ($25.00 at SurveyGizmo) free plan places no limits on the number of surveys, questions, or responses you manage, which is a tremendous value.

You’ll get access to 25 different question types, data visualization tools, and you’ll never have to provide any information (unless you plan to upgrade to a paid plan).

20. Customer Relationship Management from Apptivo CRM

Customer relationship management (CRM) tools are often complex, expensive, and flooded with features you’ll never need. Apptivo CRM (Compare Quotes and Save at Apptivo) offers a free Starter plan for up to three users that’s designed to ease you into the complicated world of customer data.

With the Starter plan, you’ll gain access to detailed reporting, 500 MB of data, and project management features such as milestone tracking and project templates. You’ll also be able to connect your free CRM to free helpdesk, finance management, and procurement tools, which is especially helpful if you’re a startup that is just dipping its toe into the world of cloud services.

21. Contract Management from Agiloft

If your contract management needs are basic, then try Agiloft . The free plan supports 10 registered users and you’ll gain access to 30 days of customer service.

Although the free version of the tool is primarily used as an evaluation source for larger organizations, it can also be used by small businesses that are able to deal with a few limitations. For example, timer-based rules function only at 48-hour intervals. You won’t get automatic data backup, access to the Rest API, or your own employee portal. If you can handle those issues, then the free plan is all you’ll really need.

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Original document, 21 Free Tools Your Small Business Should Be Using Today
Source:https: PC
Adapted for Academy.Warriorrising