SWOT Analysis

Strengths

Weaknesses

Opportunities

Threats

SWOT AnalysisA useful technique for understanding your strengths and weaknesses, and for identifying both the opportunities open to you and the threats you face

to craft a strategy that helps you distinguish yourself from your

competitors, so that you can compete successfully in your market.

Strengths• What advantages does your

organization have?

• What do you do better than anyone else?

• What unique or lowest-cost resources can you draw upon that others cannot?

Strengths• What do people in your market see

as your strength?

• What factors mean that you “get the sale”?

Weaknesses• What could you improve?

• What should you avoid?

• What are people in your market likely to see as weakness?

• What factors lose you sales?

Opportunities • What good opportunity can you spot?

• What interesting tends are you aware of?

Useful opportunities can come from such thing as:

- changes in technology and markets on both a broad and narrow scale

- changes in government policy related to the field

-changes in social patters, population, profiles, lifestyle changes, etc.

-local events

Threats• What obstacles do you face?

• What are your competitors doing?

• Are quality standards or specifications for your job, products or services changing?

Threats • Is changing technology threatening

your position?

• Do you have a bad debt or cash flow problems?

• Could any of your weaknesses seriously threaten your business?

Bear in mind these simple rules for successful SWOT analysis

• Be realistic about the strengths and weaknesses of your business when conducting SWOT analysis.

• SWOT analysis should distinguish between where your business is today, and where it could be in the future.

• SWOT should always be specific. Avoid any grey areas.

Bear in mind these simple rules for successful SWOT analysis

• Always apply SWOT in relation to your competition i.e. better than or worse than your competition.

• Keep your SWOT short and simple. Avoid complexity and over analysis

• SWOT is subjective.

Example STRENGTH WEAKNESS OPPORTUNITY THREAT

-we are able to respond very quickly to customers’ needs

-We offer goods/services at a low price.

-We assure the quality of our products

-Our business has a little market reputation

-We do not have complete set of products and services

-Our business is expanding in the future

-Our competitors may be slow to adapt to new technology

-Developments in technology may change this market beyond our ability to adapt

-A small change in the focus of a large competitor might wipe out any market position we achieve

Activity No. 2Think of a possible business and create a SWOT Analysis by answering the given questions. Use the table below.

STRENGTHS WEAKNESSES OPPORTUNITIES THREATS