SWOT ANALYSIS

SWOT Analysis:
SWOT is acronym for Strengths, weaknesses, opportunities and threats. A company can identifies
its strengths and weaknesses by analyzing the internal environment (also known as corporate
appraisal) and opportunities and threats by analyzing the external environment. An effective
strategy is one that exploit the opportunities and offset the threats faced by an organization.
POSITIVE INFLUENCE
EXAMANINATION

STRENGTHS

EXAMINATION
OPPORTUNITY

EXTERNAL
INTERNAL

SWOT

WEAKNESS THREAT

NEGATIVE INFLUENCE
1. Strengths: A strength is an intrinsic capability of a firm which it can use to obtain competitive
advantage over its competitors.
2.Weakness: A weakness is an intrinsic limitation or constraint of a firm which creates
competitive disadvantage for it.
3. Opportunity: An opportunity is a beneficial conditions in the firm’s environment which make
it possible for the firm to strengthen its position.
4.Threats: A threat is an adverse condition in the firm’s environment which may cause a damage
or risk to its position. A brief list of strength, weakness, opportunities and threats are given below:
 A brief list of strength, weakness, opportunities and threats are given below:

Strengths Opportunities
 Powerful brand image •Delicensing
High quality manpower •Relaxations in import
 Economies of scale •FDI norms
Research and development ability •Reforms in capital market
 Location facilities •Growing market
 Genial industrial relations •Growing urban incomes and
 Modern technology population
 Effective cost control •Upgrading consumers

Weaknesses Threats
•Poor brand image Low priced competition
•Low credit rating Political instability
•Dispersed manufacturing location Recession
•Poor quality of products Liberalization of imports
•Excess manpower Consumerism
•Poor morale
•Weak research and development skills