2. 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. SWOT analysis assesses
internal and external factors, as well as
current and future potential.
3. Strengths and weaknesses are internal to the
company (think: reputation, patents, location).
You can change them over time but not
without some work. Opportunities and threats
are external (think: suppliers, competitors,
prices)—they are out there in the market,
happening whether you like it or not. You can’t
Strengths describe the positive attributes, tangible
and intangible, internal to your organization. They
are within your control.
Characteristics of a business which give its
advantages over its competitors.
Things your company does well.
Qualities that separates you from your competitors.
Weaknesses are aspects of your business that detract from
the value you offer or place you at a competitive
disadvantage. You need to enhance these areas in order to
compete with your best competitor.
Things your company lacks
Things your competitor do better than you
What does your business lack (for example, expertise or
access to skills or technology).
Opportunities refer to favorable external factors that could
give an organization a competitive advantage.
Few competitors in your area
Emerging need for your products or services
Is your market growing and are there trends that will
encourage people to buy more of what you are selling?
Are there upcoming events that your company may be
able to take advantage of to grow the business?
Threats include external factors beyond your control that
could place your strategy, or the business itself, at risk.
You have no control over these, but you may benefit by
having contingency plans to address them if they should
Changing regulatory environment
New product or technology that makes your product,
equipment or service obsolete
9. Who should do a SWOT
For a SWOT analysis to be
effective, company founders and
leaders need to be deeply
involved. This isn’t a task that can
be delegated to others.
10. How to do a SWOT analysis
the right way
Gather people from different parts of your
company and make sure that you have
representatives from every part. Through
BRAINSTORMING you’ll find that different
groups within your company will have entirely
different perspectives that will help to make
your SWOT analysis successful.
11. Why do we need to conduct
SWOT Analysis is a simple but useful
framework for analyzing your organization's
strengths and weaknesses, and the
opportunities and threats that you face. It
helps you focus on your strengths, minimize
threats, and take the greatest possible
advantage of opportunities available to you.
12. Why All of This is Important?
A SWOT analysis can be extremely valuable in
shaping your business strategy because it gives you a
chance to see things from a new perspective. It may
lead to the discovery of a previously untapped niche
in your market or help you to pinpoint an obstacle
that could hinder your business’s growth. As you
reaffirm what your business’s strengths are and
correct your weaknesses, you can use this to shape
new opportunities and counteract the impact
of external threats.