aim of swot analysis take advantage of strengths and opportunities minimize weaknesses and eliminate...
TRANSCRIPT
Aim of SWOT Analysis
Take advantage of strengths and opportunities
Minimize weaknesses and eliminate threats
Strengths Internal positive aspects that are under control
and upon which you may capitalize in planningWhat are your advantages?What do you do well?What do others see as your strengths?
Start-up Business Example
A SWOT strength could be:Your specialist marketing expertise.A new, innovative product or service.Location of your business.Quality processes and procedures.Any other aspect of your business that adds
value to your product or service.
WeaknessesInternal negative aspects that
are under your control and that you may plan to improveWhat could be improved?What is done badly?What should be avoided?
Start-up Business Example
A SWOT weakness could be:Lack of marketing expertise.Undifferentiated products or services (i.e. in
relation to your competitors).Location of your business.Poor quality goods or services.Damaged reputation.
Opportunities Positive external conditions that you do not
control but of which you can plan to take advantageWhere are the good chances facing you?What are the interesting trends?What changes in technology are taking
place?What changes in social patterns, population
profiles, lifestyle changes?Local events?
Start-up Business Example
A SWOT opportunity could be: A developing market such as the Internet. Mergers, joint ventures or strategic alliances. Moving into new market segments that offer
improved profits. A new international market. A market vacated by an ineffective competitor.
Threats Negative external conditions that you do not
control but the effect of which you may be able to lessenWhat obstacles do you face?What is your competition doing?Are the required specifications for your
business, products or services changing? Is changing technology threatening your
business?Do you have bad debt or cash-flow problems?Could any of your weaknesses seriously
threaten your business?
Start-up Business Example
A SWOT threat could be:A new competitor in your home market.Price wars with competitors.A competitor has a new, innovative product or
service.Competitors have superior access to
channels of distribution.Taxation is introduced on your product or
service.
Areas to Concentrate on for SWOT
Finance –availability of loans Operations – location, labor productivity, quality
control, customer responsiveness Administration – quality of staff, communication,
delegation Marketing – market share, service reputation,
customer service, advertising effectiveness Personnel – salary/rewards, recruiting, training,
teamwork
Final Recommendations
S - W – O – T Analysis Provide concrete insights
recommending ways to improve and broaden their business’s success.