SWOT Analysis for Sri Lankan Apparel Industry

SWOT Analysis

SWOT analysis is an analytical method which is used to identify and categories significant internal
(Strengths and Weaknesses) and external (Opportunities and Threats) factors faced either in a
particular arena, such as an organization, or a territory, such as a region, nation, or city.

It provides information that is helpful in matching the firms’ resources and capabilities to the
competitive environment in which it operates and is therefore an important contribution to the
strategic planning process.

It should not be viewed as a static method with emphasis solely on its output, but should be used as
a dynamic part of the management and business development process.

Effect of SWOT on Sri Lankan Apparel Industry

Strengths:

 Has a skilled workforce, an educated and trained workforce and the ability to manage
production capacity and handle high volume orders.
 The geography of the country facilitates easy navigation within the country.
 Reputed internationally customer base.
 Compliance with international labor regulations.
 On time delivery of standard "all season "product.

Weaknesses:

 Lack of marketing skills with over dependence on buying officers, and allocation of quotas.
 The relatively high of utilities.
 Lack of fabric base and over dependence on input suppliers with long lead times
 Lack of a strong work ethic along with high absenteeism and labor turn over.
 Increasing cost of labor and availability of employment in other industries and foreign
employment opportunities.

Opportunities:

 The positive impact of the government’s peace initiative.

 Promote Sri Lanka as a socially responsible manufacturer of apparels.
 Transitions to products that require high labor content.
 Sri Lanka becomes a total service provider for the appeal industry.

Threats

 Rapidly changing trends in the retailing industry.

 New entrants to the industry.
 Emergence of efficient international shipping hubs in the Asian region.
 The increase in Sri Lanka’s labor costs at a faster pace than productivity.
 The arrival of new competitors in the Asian sub-continent such as Vietnam, Cambodia,
Myanmar and Laos.