1. SWOT ANALYSIS

2. 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

3. Competitive Advantage
Efficiency
Innovation
Quality
Customer Responsiveness

4. 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

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

6. 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

7. 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.

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