SWOT

SWOT Strengths Weaknesses Opportunities Threats

For an organization's strategy to be well-conceived, it must be matched to both - Taking advantage of its internal strengths while defending against tis weaknesses Strengths

A strength is something a company is good at doing or a characteristic that gives it an important capability Possible Strengths: Valuable competencies or know-how - Valuable physical assets (e.g. advances machines) - Valuable human assets / intellectual capital (skilled employees) - Valuable organizational assets (brand recognition) - Valuable intangible assets (proprietary technology) - Important competitive capabilities (cost advantages, loyal customers) - Effective strategic alliances or cooperative partnerships

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Weakness Possible Weaknesses: - Poor market image - Obsolete facilities - Internal operations problems - Poor marketing skills Opportunities Growth market Favorable investment environment Deregulation Stable exchange rate Patent protection, etc. Threats

A weakness is something a company lacks or does poorly (in comparison to others) or a condition that places it at a disadvantage

- Slowdowns in market growth - Emergency of cheaper / better technologies - Introduction of better products by rivals

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Entry of lower-cost foreign competitors Onerous regulations Intensifying competition Potential of a hostile takeover Unfavorable demographic shifts Adverse shifts in foreign exchange rates Loss of sales to attractive substitutes products

Market Opportunities Opportunities most relevant to a company are those offering: 1. Good match with its financial and organizational resource cap abilities 2. Best prospects for profitable long-term growth 3. Potential for competitive advantage

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