SWOT Analysis

A Planning and Organizing Tool

Strengths, Weaknesses,
Opportunities, and Threats
• Strengths and weaknesses are generally
internal factors that are within your control.
• Opportunities and Threats are generally
external issues that you can’t control.
Strengths
• Consider from both the view of the firm (product) as
well as from customers and competitors
• Realistic and not modest
• One’s strength is another’s weakness
• Questions:
– What are the firm’s or the product’s advantages over
others?
– What does it do well? What makes it stand out from your
competitors?
Weaknesses
• Be truthful so that weaknesses may be
overcome as quickly as possible
• One’s strength is another’s weakness
• Questions.
– What is done poorly?
– What can be improved?
– What should be avoided?
Opportunities and Threats
• external in nature
• Represent characteristics of:
– the research environment
– growth in potential markets
– changes in the competitive, economic, political/legal,
technological, or socio-cultural environments
• A threat to some is an opportunity to another.
• Questions on opportunities:
– Is there a product/service area that others have
not yet covered?
– Are there emerging trends that fit with your
company's strengths?
• Questions on threats:
– Are your competitors becoming stronger?
– Are there emerging trends that amplify one of
your weaknesses?
In the case of IVR a strength could be:
• technological capability: speed, efficiency,
precision, power, etc.
• stage of development relative to competitors:
RIO, patent, prototype.
• characteristics of the lead researcher:
commercialization focus, reputation, other
complimentary work.
• cost
In the case of IVR a weakness could be:
• technological weakness: lack of speed,
efficiency, precision or power
• lead researcher uninterested in
commercialization
• stage of development or uncertainty with
regard to technological capabilities
• cost
An opportunity could include:
• a new, developing or untapped market
• an old market needing technological advances
• a recent technological development that can
be used as a catalyst for others (possibly
through licensing)
• change in regulatory environment that creates
demand for new technology
A threat could be:
• other ongoing research or commercialization
efforts
• a large existing competitor
• market volatility (because we are new market
entrants)
• market access (for supplies or customers)
• a competitor has a new, innovative product or
service
• competitors have superior access to channels of
distribution
Suggestions for using SWOT Analysis:
• SWOT analysis can be very subjective.
• Two people rarely come-up with the same final
version of SWOT.
• Be realistic; no need to inflate strengths or be in
denial about shortcomings.
• Distinguish between where your technology is
today, and where it could be in the future.
• Be specific. Avoid grey areas.
• Always analyze in the context of your
competitive environment.
More suggestions for using SWOT Analysis
• Weaknesses should be looked at in order to convert
them into strengths.
• Try to match your strengths with external
opportunities.
• Threats should be converted into opportunities.
• Strengths and opportunities should be matched.
• Keep your SWOT short and simple.
• Do not rely on it too much.
Expanding Your SWOT Analysis
• Delve deeper into the details of the
technology.
• Include more detailed competitor information
in the analysis.
• Take a closer look at the business
environment.
• Expand the reach of a SWOT analysis through
surveys.