SWOT ANALYSIS

SWOT(Strength, Weakness, Opportunities and Threats) analysis

is a framework for identifying and analyzing the internal & external factors
affecting/impacting on the viability of a project, product, place or a person.
It is useful tool to help you better understand your business’s current
prospects for success.

It can be equally helpful in the early stages of a business and can

help in establishment of companies to stay on track for continuous growth.

In SWOT analysis, internal factors of one’s business like key

personnel management are evaluated as strength and weaknesses.
External factors like economic environment are described as opportunities
and threats.

“SWOT analysis isn’t supposed to be a list of action items, but it

should suggest such a list. After doing it, use it to identify specific
moves you can make to leverage your strengths, maximize
opportunities, ramify weaknesses and defuse threats”

Simple effective and time-tested, SWOT analysis should probably

have a place in every entrepreneur’s strategic toolbox
❖ Elements of SWOT analysis:

1. STRENGTHS:-

Can be used to gain advantage. Everyone will want to nurture

their strengths.

✓ Accessibility to distribution network

✓ Adequate financial resources
✓ Strong management team
✓ Special skills, motivation
✓ Proprietary technology
✓ Competitive quality
✓ Cost advantage
✓ Brand name

2. WEAKNESSES:-

They need to be corrected in order to meet goals

✓ Out dated facilities (lack of access to distribution network)

✓ Cost disadvantage with competitors (High cost)
✓ Poor reputation among customers
✓ Shortage of skilled personnel
✓ No clear strategic direction
✓ Weak marketing image
✓ Lack managerial depth
✓ Unpopular brand
✓ Lack of capital
 3. OPPORTUNITIES:-

This could allow you to improve your position in the market or

grow your business.

✓ Removal of International trade barriers

✓ Promising customer relationship
✓ An unfulfilled customer need
✓ Arrival of new technologies
✓ Loosening of regulations
✓ Form strategic alliance
✓ Expand product line
✓ Add related services
✓ Weak competitions
✓ Target new market

4. THREATS:-

Represents potential problems that one should consider and

address

✓ Change in customers buying preference

✓ Increased regulations (trade barriers)
✓ Emergence of substitute products
✓ Entry of strong competitor

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“With every decision you make, filter what you’re good
at and what you’re not so good at. In this way you will
subconsciously apply SWOT to your decision -making
process ”
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