SWOT Analysis (C) Krystle Attard 2013
A situation analysis where internal strengths and weaknesses of an organization are examined in line with potential opportunities and threats to chart a strategy Strengths Weaknesses Opportunities Threats (C) Krystle Attard 2013
A firm’s strengths are its resources and capabilities that can be used as a basis for developing a competitive advantage Examples: patents, brand names, reputation, cost advantages, access to resources, distribution networks (C) Krystle Attard 2013
Absence of strengths or threats to profitability Deals with product features from production to sales and marketing stages Examples: patent protection, established competition, price vs. quality balance, limited access to resources (C) Krystle Attard 2013
The external environmental analysis may reveal certain new opportunities for profit and growth Examples: An unfulfilled customer need New technologies Loosening of regulations Less international trade barriers (C) Krystle Attard 2013
Changes in the external environmental also may present threats to the firm Examples: Shifting consumer tastes Substitute products New regulations Increased trade barriers Increased overheads (C) Krystle Attard 2013
A firm should not necessarily pursue the more money-spinning opportunities There may be a better chance at developing a competitive advantage by identifying a balance between the firm’s strengths and upcoming opportunities (C) Krystle Attard 2013
StrengthsWeaknesses OpportunitiesS-OW-O ThreatsS-TW-T (C) Krystle Attard 2013
S-O Strategies: pursue business opportunities which fit in with the company’s established strengths W-O Strategies: overcome weaknesses to pursue opportunities (C) Krystle Attard 2013
S-T Strategies: identify ways how to use the firm’s strengths to reduce its vulnerability to external threats W-T Strategies: establish a defensive plan to prevent the firm’s weaknesses from making it highly susceptible to external threats (C) Krystle Attard 2013