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SWOT AnalysisOperational Definitions
 
©
Copyright 2006 -Advanced Integrated Technologies Group, Inc., All rights reserved.
Page 2
SWOT AnalysisOperational Definitions
A STRENGTH
is something that you truly do well, excel at versus the competition, canbuild on; something that truly differentiates your business, a key metric that is improving,etc. Most companies do surprisingly bad job of identifying what they are really good atdoing. Every company has strengths. A strength can be something very concrete like alarge, growing customer base or less measurable: a well-run customer servicedepartment that keeps customers satisfied (thus helping both retention and new sales).Note that a STRENGTH can also be a weakness: e.g. you’re Number One in your marketis a STRENGTH, but if you are taking that for granted—that’s also a weakness.
A Weakness
is a real gap, a deficiency, a problem, or a key metric that is going south;something you’re not doing very well and that you should be doing better; somethingthat’s dated that no longer applies—even though it used to; something important that youreally don’t know or aren’t sure about. In fact, one good outcome of a SWOT is todiscover what you really
don’t 
know and then do something about it. A weakness can bevery tangible and concrete or it can be an attitude: e.g. a complete unwillingness to investin any marketing initiatives or a lack of understanding what to do.
The best way to identify STRENGTHS, WEAKNESSES,OPPORTUNITIES & THREATS is to ask the right questions
 
©
Copyright 2006 -Advanced Integrated Technologies Group, Inc., All rights reserved.
Page 3
SWOT AnalysisOperational Definitions (Cont.)
An OPPORTUNITY
is a favorable external condition; something (that you haven’t actedon or taken advantage yet) that could impact you positively. Opportunities are new waysthat your exploit your STRENGTHS, WEAKNESSES & THREATS--new things that thatyou can do to potentially improve your business—that turn into recommendations andactions. This list becomes the most important part of your SWOT for prioritizing anddetermining what next steps to take.
A THREAT
is something external to your business that can
potentially 
impact younegatively: competitors (actually doing specific things vs. just being there), changingconditions in your particular marketplace, the overall economy, government regulations,etc. Threats are part of the playing field that you can’t ignore. They are part of the contextof your business. Some threats, though, are internal: e.g. hanging onto the status quowhen change is required or the impact on remaining if you decide to cut costs (maybe anOPPORTUNITY).
You should also make an ongoing list of Issues and questions that inevitably pop-up as a result ofdeveloping the STRENGTHS, WEAKNESSES, OPPORTUNITIES & THREATS lists—for furtheranalysis and discussion—and possible incorporation into your SWOT. Generally, STRENGTHS &WEAKNESSES are current in timeframe, and OPPORTUNITIES & THREATS are in the future—starting with tomorrow.
 
The purpose of strategy is to be really clear before you take the direction.The point of a SWOT analysis is to have the best shot at a grounded plan 
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