SWOT ANALYSIS

Strengths and Weaknesses Distinct Competences Resources Capabilities Value Chain R&D Production Marketing and Sales Customer Service Materials Management Human Resources Information Services Company Infrastructure

Competitive Advantage Efficiency Innovation Quality Customer Responsiveness

Opportunities and Threats Porter’s Five Forces Intensity of Rivalry among established firms Risk of entry by potential competitors Threat of substitutes Bargaining power of suppliers Bargaining power of Buyers

Macroenvironment Political and Legal Forces Demographic Forces Global Forces Technological Forces Social Forces Macroeconomic Forces

Putting it together Look at the matrix with S and W on one side and T and O on the other. Look at Opportunities, what strengths are available to take advantage of the opportunity. This could be a source of a new competitive advantage. What weaknesses will prevent this opportunity

Look at Threats. Does the company have strengths to combat the threat In the worst case, a threat and a weakness would spell a strategic disadvantage.

Strategic Planning This matrix will allow a company to develop or amend a strategic plan Functional Business unit Corporate level