Detailed SWOTAnalysis

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SWOT Analysis Overview

What is SWOT Analysis?

Remember, It’s Virtually Impossible To Focus Too Much On What You Do Well And What Creates Profits For Your Business.

A SWOT (Strengths, Weaknesses, Opportunities, and Threats) is a tool used toprovide a general or detailed snapshot of a company's health. Think of your SWOTas a tune-up that every business needs periodically to diagnose and fix what’s a bitworn, what’s on the verge of breaking down, or what’s already broken and needsreplacement--so that you can keep the business humming—even better than it hasin the past.

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SWOT offers professional managers an effective evaluative technique to aid thedecision making process.

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It can not find the solution for you, but it will ensure that issues are: identified,classified and prioritized clearly, showing the problem in terms of key underlyingissues. Decision makers can then see the answer.

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It's a four-part approach to analyzing a company's overall strategyor the strategy ofits business units. All four aspects must be considered to implement a long-rangeplan of action.

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SWOT Example

A start-up small consultancy business might carry out thefollowing SWOT analysis

Strengths:

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We are able to respond very quickly as we have no red tape, no need for higher management approval,etc.

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We are able to give really good customer care, as the current small amount of work means we have plentyof time to devote to customers

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Our lead consultant has strong reputation within the market

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We can change direction quickly if we find that our marketing isnot working

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We have small overheads, so can offer good value to customers

Weaknesses:

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Our company has no market presence or reputation

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We have a small staff with a shallow skills base in many areas

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We are vulnerable to vital staff being sick, leaving, etc.

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Our cash flow will be unreliable in the early stages

Opportunities:

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Our business sector is expanding, with many future opportunitiesfor success

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Our local council wants to encourage local businesses with work where possible

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Our competitors may be slow to adopt new technologies

Threats:

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Will developments in technology change this market beyond our ability to adapt?

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A small change in focus of a large competitor might wipe out anymarket position we achieve

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The consultancy might therefore decide to specialize in rapid response, good value services to localbusinesses. Marketing would be in selected local publications, to get the greatest possible market presencefor a set advertising budget. The consultancy should keep up-to-date with changes in technology wherepossible.