SWOT SWOT AnalysisAnalysis

What is SWOT Analysis?What is SWOT Analysis?

The SWOT Analysis is an important The SWOT Analysis is an important strategic tool. It helps companies make strategic tool. It helps companies make sound strategic decisions by looking at sound strategic decisions by looking at their controllable/internal environment, their controllable/internal environment,

look at the external/uncontrollable look at the external/uncontrollable environment.environment.

Internal vs. External EnvironmentsInternal vs. External Environments

In analyzing a company’s current strategic In analyzing a company’s current strategic position, it is important to look at what the position, it is important to look at what the

company has control of (the internal company has control of (the internal environment), and what it does not have environment), and what it does not have

control of (the external environment).control of (the external environment).

The Internal EnvironmentThe Internal Environment

The Internal Environment of a company The Internal Environment of a company includes the things the company can includes the things the company can control. These are the control. These are the SStrengths and trengths and

WWeaknesses. eaknesses.

When you look at the these, look not only When you look at the these, look not only from the company’s point of view, but also from the company’s point of view, but also

from the point of view of outsiders. Be from the point of view of outsiders. Be realistic in your assessment. realistic in your assessment.

SStrengthstrengths

Your strengths should cover:Your strengths should cover:

What do you do well?What do you do well?

What advantages do you have?What advantages do you have?

What resources do you have access to?What resources do you have access to?

What do others see as your strengths? What do others see as your strengths?

This is a good starting point, but not a This is a good starting point, but not a limiting point in your analysis of strengths.limiting point in your analysis of strengths.

WWeaknesseseaknesses

Your weaknesses should cover:Your weaknesses should cover:

What do you do badly?What do you do badly?

What are things that need improvement?What are things that need improvement?

What do you do that you should avoid?What do you do that you should avoid?

Again, this is a good starting point, but try to Again, this is a good starting point, but try to look beyond these questions in analyzing look beyond these questions in analyzing

weaknesses. weaknesses.

The External EnvironmentThe External Environment

The External Environment is everything that is The External Environment is everything that is outside of the company’s control. outside of the company’s control.

These are the These are the OOpportunities and pportunities and TThreats.hreats.1.1. LegalLegal2.2. PoliticalPolitical3.3. SocialSocial4.4. EconomicEconomic

1.1. ““...demand for...”...demand for...”

5.5. TechnologicalTechnological6.6. GlobalGlobal7.7. CompetitiveCompetitive8.8. environmentalenvironmental

OOpportunities & pportunities & TThreatshreats

OOpportunities- What elements of the pportunities- What elements of the external environment could benefit the external environment could benefit the

company? company?

TThreats- What elements of the external hreats- What elements of the external environment could hurt to the company? environment could hurt to the company?

What Next?What Next?

Now that you have identified the company’s Now that you have identified the company’s SStrengths, trengths, WWeaknesses, eaknesses, OOpportunities, pportunities,

and and TThreats, it’s time to put them together hreats, it’s time to put them together and understand what they mean. and understand what they mean.

Internal (Controllable) External (Uncontrollable)

Strengths Opportunities

Weakness Threats

LEVERAGE

LeverageLeverage

Leverage is when a strength allows you to take Leverage is when a strength allows you to take advantage of an opportunity.advantage of an opportunity.

Internal (Controllable) External (Uncontrollable)

Strengths Opportunities

Weakness Threats

ConstraintConstraint

Constraint is when a weakness prevents you Constraint is when a weakness prevents you from taking advantage of an opportunity.from taking advantage of an opportunity.

CONSTRAINT

Internal (Controllable) External (Uncontrollable)

Strengths Opportunities

Weakness Threats

VulnerabilityVulnerability

Vulnerability is when a threat attacks a Vulnerability is when a threat attacks a strength.strength.

VULNERABILITY

Internal (Controllable) External (Uncontrollable)

Strengths Opportunities

Weakness Threats

ProblemProblem

Problem is when a threat attacks a weakness.Problem is when a threat attacks a weakness.

PROBLEM

Internal (Controllable) External (Uncontrollable)

Strengths Opportunities

Weakness Threats

LEVERAGE

PROBLEM

CONSTRAINT VULNERABILITY

SWOT AnalysisSWOT Analysis

SWOT AnalysisSWOT Analysis

Once you have identified the Leverages, Once you have identified the Leverages, Constraints, Vulnerabilities, and Problems Constraints, Vulnerabilities, and Problems

facing the company, you can make facing the company, you can make recommendations for the company to recommendations for the company to move forward and improve its market move forward and improve its market

position. position.