Chapter 2 Notes: SWOT Analysis-

Assessment of an organization’s strengths, weaknesses, opportunities, and threats

● Strengths and weaknesses are internal factors that can influence an organization’s
ability to satisfy its target market
○ These are things that you have some control over and can change.
■ Examples include who is on your team, your patents and
intellectual property, and your location
● Opportunities and threats affect all organizations within an industry, market, or
geographic region because they exist outside of and independently of the
company
○ things that are going on outside your company, in the larger market. You
can take advantage of opportunities and protect against threats, but you
can’t change them.
■ Examples include competitors, prices of raw materials, and
customer shopping trends.
● SWOT Breakdown-
○ Strengths​ – Competitive advantages, or core competencies, that give the
company an advantage
■ What business processes are successful?
■ What assets do you have in your team, such as knowledge,
education, network, skills, and reputation?
■ What physical assets do you have, such as customers, equipment,
technology, cash, and patents?
■ What competitive advantages do you have over your competition?
○ Weaknesses​ – Limitations a company faces in developing or
implementing a marketing strategy
■ Are there things that your business needs to be competitive?
■ What business processes need improvement?
■ Are there tangible assets that your company needs, such as money
or equipment?
■ Are there gaps on your team?
■ Is your location ideal for your success?
○ Opportunities​ ​– Favorable conditions in the environment that could
produce rewards for the organization if acted upon
■ Is your market growing and are there trends that will encourage
people to buy more of what you are selling?
■ Are there upcoming events that your company may be able to take
advantage of to grow the business?
○ Threats​ ​– Barriers that could prevent the company from reaching its
objectives
■ Could future developments in technology change how you do
business?
■ Is consumer behavior changing in a way that could negatively
impact your business?
■ Potential competitors entering your market?
● Who should be the ones conducting a SWOT Analysis?
○ Leadership and company executives need to be heavily involved
○ Different perspectives from all levels and areas of the company are also
essential to ensure they are looking at the company from all angles