S W S.W.O.

T
O T ANALYSIS
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 What is SWOT Analysis?
• SWOT (strengths, weaknesses, opportunities, and
threats) analysis is a framework used to evaluate a
company’s competitive position and to develop
strategic planning.

• A technique that enables organizations or individual

to move from everyday problems and traditional
strategies to a fresh prospective.
 Aim of SWOT Analysis
• To help decision makers share and compare ideas.
• To bring a clearer common purpose and
understanding of factors for success.
• To organize the important factors linked to success
and failure in the business world.
• To help individual or organization to understand their
strengths and weaknesses.
• It promotes strategic thinking
Basic Elements of The SWOT Analysis

STRENGTH
INTERNAL
WEAKNESSES

OPPORTUNITY
EXTERNAL
THREATS
 Basic Elements of The SWOT Analysis

STRENGTHS
• Strengths describe what an organization excels at
and what separates it from the competition.

• Beneficial aspects of the organization or the

capabilities of an organization, process capabilities,
financial resources, products and services, customer
goodwill and brand loyalty.
 Basic Elements of The SWOT Analysis

STRENGTHS
• Examples - Abundant financial resources, Well-
known brand name, Lower costs [raw materials or
processes], Superior management talent, Better
marketing skills, Good distribution skills, Committed
employees
 Basic Elements of The SWOT Analysis
WEAKNESSES
• Weaknesses stop an organization from performing at
its optimum level. They are areas where the business
needs to improve to remain competitive.

• Weaknesses are the factors which do not meet the

standards we feel they should meet. However,
weaknesses are controllable. They must be
minimized and eliminated.
 Basic Elements of The SWOT Analysis
WEAKNESSES
• Examples - Limited financial resources, Very narrow
product line, Limited distribution, Higher costs, Weak
market image, Poor marketing skills, Limited
management skills, Under-trained employees.
 Basic Elements of The SWOT Analysis
OPPORTUNITY
• Opportunities refer to favorable external factors that
could give an organization a competitive advantage.

• Examples - Rapid market growth, Rival firms are

complacent, Changing customer needs/tastes, New
uses for product discovered, Economic boom,
Government deregulation, Sales decline for a
substitute product .
 Basic Elements of The SWOT Analysis
THREATS
• Threats refer to factors that have the potential to
harm an organization.

• Examples - Entry of foreign competitors, Introduction

of new substitute products, Product life cycle in
decline, Changing customer needs/tastes, Rival firms
adopt new strategies, Increased government
regulation, Economic downturn.
SWOT Table
 SWOT Table
Strengths
1. What is our competitive advantage?
2. What resources do we have?
3. What products are performing well?
Threats
1. What new regulations threaten
operations?
2. What do our competitors do well?
3. What consumer trends threaten
business?
Weaknesses
1. Where can we improve?
2. What products are underperforming?
3. Where are we lacking resources?
Opportunity
1. What technology can we use to improve
operations?
2. Can we expand our core operations?
3. What new market segments can we
explore?