SWOT Analysis is a strategic planning method used to evaluate
the Strengths, Weaknesses, Opportunities, and Threats involved in a project or in a business venture.
It involves specifying the objective of the business venture or project and identifying the internal and external factors that are favorable and unfavorable to achieving that objective Strengths: attributes of the person or company that are helpful to achieving the objective.
Weaknesses: The absence of certain strengths maybe considered a weakness.
Opportunities: external conditions that are helpful to achieving the objective.
Threats: changes in the external conditions which could do damage to the objective. Creative use of SWOT How can we Use and Capitalize on each Strength? How can we Improve each Weakness? How can we Exploit and Benefit from each Opportunity? How can we Mitigate each Threat ? Environmental Scan
Internal Analysis External Analysis
Strengths Weaknesses Opportunities Threats
SWOT Matrix SWOT analysis framework Strengths :
Strong brand name Good reputation among customers Exclusive access to high grade natural resources Favourable access to distribution networks Weakness: A weak brand name Poor reputation among customers High cost structure Lack of access to best natural resources
Opportunities: An unfulfilled customer need Arrival of new technologies Loosening of regulations Removal of international trade barriers Threats: Shift in consumer tastes away from the firms products Emergence of substitute products New regulations Increased trade barriers
SWOT MATRIX
Strengths
Weakness
Opportunitie s
S-O Strategies
W-O Strategies
Threats
S-T Strategies
W-T Strategies S-O Strategies: Pursue opportunities that are a good companys fit to the companys strengths
W-O Strategies: Overcome weaknesses to pursue opportunities
S-T Strategies: Identify ways to use strengths to reduce vulnerability to external threats
W-T Strategies: Establish a defensive plan to prevent the firms weaknesses from making it highly susceptible to external threats