SWOT analysis

A SWOT analysis will help you identify areas of your business that are performing well. These areas are
your critical success factors and they give your business its competitive advantage. Identifying these
strengths can help you make sure you maintain them so you don't lose your competitive advantage.

The SWOT analysis helps you see how you stand out in the marketplace, how you can grow as a business
and where you are vulnerable. Maximize its response to opportunities. Overcome organization's threats.
It helps in identifying core competencies of the firm. It helps in setting of objectives for strategic
planning.

This approach attempts to balance the internal strengths and weaknesses of the organization with the
external opportunities and threats. It provides a good overview of whether a company's condition is
healthy or unhealthy.

SPACE matrix

The analysis allows to create an idea of the appropriate business strategy for the enterprise.
The analysis assesses the internal and external environment and allows to design an
appropriate strategy. SPACE matrix is a strategic management tool that focuses on strategy
formulation especially as related to the competitive position of an organization.

 Aggressive position - an attractive and relatively stable industry, the company has a
competitive advantage and it can protect it, a critical factor is the possible entry of new
competitors into the industry, it may be considered new acquisitions, increasing market
share and focusing on competitive products
 Competitive position - attractive and relatively unstable environment, the company has
some competitive advantage, a critical factor is the company’s financial strength - the
company should look for ways of their attachment, the solution is the possibility of joining
another company, increasing production efficiency and strengthening cash flow
 Conservative position - a stable industry with low growth rate and financially stable
company, a critical factor is in the product competitiveness, company should protect its
successful products and develop new ones and think about the possibilities of the
penetration into the industry more attractive and reduce costs.
 Defensive position - an unattractive industry, the company lacks competitive products
and financial resources, a critical factor is the competitiveness, the company should
reduce costs, reduce investment and consider leaving the industry.