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SWOT Analysis
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What is SWOT Analysis SWOT Analysis is an important planning
tool that helps a Person or an Institution identify in a systematic and organized way its internal strengthsweakness
Helps it match these strengthsweaknesses with the opportunities or threats in the environment
What is Organizationrsquos SWOT
S W O T for a organizationrsquos strategy to be well conceived it must be matched to both
Taking advantage of its internal strengths while defending against its weaknesses
Identifying the best market opportunities and minimizing external threats to its well-being
Identifying Resource Strengthsand Competitive Capabilities
1048710 A strength is something a firm does well or a characteristic that enhances its competitiveness
1048710 Valuable competencies or know-how1048710 Valuable physical assets1048710 Valuable human assets1048710 Valuable organizational assets1048710 Valuable intangible assets- eg ldquoImagerdquo1048710 Important competitive capabilities1048710 An attribute that places an organization in a position of
competitive advantage1048710 Alliances with capable partners
Identifying Resource Strengthsand Competitive Capabilities
Resource strengths and competitive capabilities are
competitive assets
Identifying Resource Weaknessesand Competitive Deficiencies
1048710 A weakness is something a firm lacks does poorly or a condition placing it at a disadvantage
1048710 Resource weaknesses relate to1048710 Deficiencies in know-how or expertise or competencies1048710 Lack of important physical organizational or intangible
assets1048710 Missing capabilities in key areas
Resource weaknesses and deficiencies arecompetitive liabilities
SWOT Analysis What to Look For
Potential Resource Strengths
Powerful strategy Strong financial conditionStrong brand nameimagereputationWidely recognized as marketleader Proprietary technology Cost advantages Strong communications Product innovationGood customer serviceBetter product qualityAlliances or JVs
Potential Resource Weaknesses
No clear strategic directionObsolete facilitiesWeak balance sheet excess debtMissing some key skillscompetenciesInternal operating problems Falling behind in RampDWeak marketing andcommunications skillsToo narrow product line
SWOT Analysis What to Look For (Cont)
Potential Resource Opportunities
Serving additional ldquocustomerrdquogroups Expanding to new geographic areasExpanding product lineTransferring skills to new productsor servicesTake market share from rivalsAlliances or acquisitionsOpenings to exploit newtechnologiesOpenings to extend brandnameimage
Potential Resource Threats
Entry of potent new competitorsSubstitute products or servicesSlowing market growthAdverse shifts in political oreconomic conditionsCostly new regulationsGrowing leverage of customers orsuppliersReduced buyer needs for product orservicesDemographic changes
Tools for Strategy Formulation
SWOT ANALYSIS
Internal Strengths Weaknesses
External Opportunities Threats
Build on your
Strengths
Evaluate your
Opportunities Research your
Threats
Recognise your
Weakness
Tools for Strategy Formulation
1048710 SO Strategies Use strengths to take advantage of Opportunities
1048710 WO Strategies Overcome weaknesses to takeadvantage of Opportunities
1048710 ST Strategies Use Strengths to avoid Threats1048710 WT Strategies Minimize Weaknesses and avoid
Threats
Do your SWOT Analysis Identify Traits within yourself Synergize your traits with people traits Do not let a particular trait dominate your
style Build on your Strengths Dilute your
Weaknesses Exploit the Opportunities Avoid the Threats
What is Organizationrsquos SWOT
S W O T for a organizationrsquos strategy to be well conceived it must be matched to both
Taking advantage of its internal strengths while defending against its weaknesses
Identifying the best market opportunities and minimizing external threats to its well-being
Identifying Resource Strengthsand Competitive Capabilities
1048710 A strength is something a firm does well or a characteristic that enhances its competitiveness
1048710 Valuable competencies or know-how1048710 Valuable physical assets1048710 Valuable human assets1048710 Valuable organizational assets1048710 Valuable intangible assets- eg ldquoImagerdquo1048710 Important competitive capabilities1048710 An attribute that places an organization in a position of
competitive advantage1048710 Alliances with capable partners
Identifying Resource Strengthsand Competitive Capabilities
Resource strengths and competitive capabilities are
competitive assets
Identifying Resource Weaknessesand Competitive Deficiencies
1048710 A weakness is something a firm lacks does poorly or a condition placing it at a disadvantage
1048710 Resource weaknesses relate to1048710 Deficiencies in know-how or expertise or competencies1048710 Lack of important physical organizational or intangible
assets1048710 Missing capabilities in key areas
Resource weaknesses and deficiencies arecompetitive liabilities
SWOT Analysis What to Look For
Potential Resource Strengths
Powerful strategy Strong financial conditionStrong brand nameimagereputationWidely recognized as marketleader Proprietary technology Cost advantages Strong communications Product innovationGood customer serviceBetter product qualityAlliances or JVs
Potential Resource Weaknesses
No clear strategic directionObsolete facilitiesWeak balance sheet excess debtMissing some key skillscompetenciesInternal operating problems Falling behind in RampDWeak marketing andcommunications skillsToo narrow product line
SWOT Analysis What to Look For (Cont)
Potential Resource Opportunities
Serving additional ldquocustomerrdquogroups Expanding to new geographic areasExpanding product lineTransferring skills to new productsor servicesTake market share from rivalsAlliances or acquisitionsOpenings to exploit newtechnologiesOpenings to extend brandnameimage
Potential Resource Threats
Entry of potent new competitorsSubstitute products or servicesSlowing market growthAdverse shifts in political oreconomic conditionsCostly new regulationsGrowing leverage of customers orsuppliersReduced buyer needs for product orservicesDemographic changes
Tools for Strategy Formulation
SWOT ANALYSIS
Internal Strengths Weaknesses
External Opportunities Threats
Build on your
Strengths
Evaluate your
Opportunities Research your
Threats
Recognise your
Weakness
Tools for Strategy Formulation
1048710 SO Strategies Use strengths to take advantage of Opportunities
1048710 WO Strategies Overcome weaknesses to takeadvantage of Opportunities
1048710 ST Strategies Use Strengths to avoid Threats1048710 WT Strategies Minimize Weaknesses and avoid
Threats
Do your SWOT Analysis Identify Traits within yourself Synergize your traits with people traits Do not let a particular trait dominate your
style Build on your Strengths Dilute your
Weaknesses Exploit the Opportunities Avoid the Threats
Identifying Resource Strengthsand Competitive Capabilities
1048710 A strength is something a firm does well or a characteristic that enhances its competitiveness
1048710 Valuable competencies or know-how1048710 Valuable physical assets1048710 Valuable human assets1048710 Valuable organizational assets1048710 Valuable intangible assets- eg ldquoImagerdquo1048710 Important competitive capabilities1048710 An attribute that places an organization in a position of
competitive advantage1048710 Alliances with capable partners
Identifying Resource Strengthsand Competitive Capabilities
Resource strengths and competitive capabilities are
competitive assets
Identifying Resource Weaknessesand Competitive Deficiencies
1048710 A weakness is something a firm lacks does poorly or a condition placing it at a disadvantage
1048710 Resource weaknesses relate to1048710 Deficiencies in know-how or expertise or competencies1048710 Lack of important physical organizational or intangible
assets1048710 Missing capabilities in key areas
Resource weaknesses and deficiencies arecompetitive liabilities
SWOT Analysis What to Look For
Potential Resource Strengths
Powerful strategy Strong financial conditionStrong brand nameimagereputationWidely recognized as marketleader Proprietary technology Cost advantages Strong communications Product innovationGood customer serviceBetter product qualityAlliances or JVs
Potential Resource Weaknesses
No clear strategic directionObsolete facilitiesWeak balance sheet excess debtMissing some key skillscompetenciesInternal operating problems Falling behind in RampDWeak marketing andcommunications skillsToo narrow product line
SWOT Analysis What to Look For (Cont)
Potential Resource Opportunities
Serving additional ldquocustomerrdquogroups Expanding to new geographic areasExpanding product lineTransferring skills to new productsor servicesTake market share from rivalsAlliances or acquisitionsOpenings to exploit newtechnologiesOpenings to extend brandnameimage
Potential Resource Threats
Entry of potent new competitorsSubstitute products or servicesSlowing market growthAdverse shifts in political oreconomic conditionsCostly new regulationsGrowing leverage of customers orsuppliersReduced buyer needs for product orservicesDemographic changes
Tools for Strategy Formulation
SWOT ANALYSIS
Internal Strengths Weaknesses
External Opportunities Threats
Build on your
Strengths
Evaluate your
Opportunities Research your
Threats
Recognise your
Weakness
Tools for Strategy Formulation
1048710 SO Strategies Use strengths to take advantage of Opportunities
1048710 WO Strategies Overcome weaknesses to takeadvantage of Opportunities
1048710 ST Strategies Use Strengths to avoid Threats1048710 WT Strategies Minimize Weaknesses and avoid
Threats
Do your SWOT Analysis Identify Traits within yourself Synergize your traits with people traits Do not let a particular trait dominate your
style Build on your Strengths Dilute your
Weaknesses Exploit the Opportunities Avoid the Threats
Identifying Resource Strengthsand Competitive Capabilities
Resource strengths and competitive capabilities are
competitive assets
Identifying Resource Weaknessesand Competitive Deficiencies
1048710 A weakness is something a firm lacks does poorly or a condition placing it at a disadvantage
1048710 Resource weaknesses relate to1048710 Deficiencies in know-how or expertise or competencies1048710 Lack of important physical organizational or intangible
assets1048710 Missing capabilities in key areas
Resource weaknesses and deficiencies arecompetitive liabilities
SWOT Analysis What to Look For
Potential Resource Strengths
Powerful strategy Strong financial conditionStrong brand nameimagereputationWidely recognized as marketleader Proprietary technology Cost advantages Strong communications Product innovationGood customer serviceBetter product qualityAlliances or JVs
Potential Resource Weaknesses
No clear strategic directionObsolete facilitiesWeak balance sheet excess debtMissing some key skillscompetenciesInternal operating problems Falling behind in RampDWeak marketing andcommunications skillsToo narrow product line
SWOT Analysis What to Look For (Cont)
Potential Resource Opportunities
Serving additional ldquocustomerrdquogroups Expanding to new geographic areasExpanding product lineTransferring skills to new productsor servicesTake market share from rivalsAlliances or acquisitionsOpenings to exploit newtechnologiesOpenings to extend brandnameimage
Potential Resource Threats
Entry of potent new competitorsSubstitute products or servicesSlowing market growthAdverse shifts in political oreconomic conditionsCostly new regulationsGrowing leverage of customers orsuppliersReduced buyer needs for product orservicesDemographic changes
Tools for Strategy Formulation
SWOT ANALYSIS
Internal Strengths Weaknesses
External Opportunities Threats
Build on your
Strengths
Evaluate your
Opportunities Research your
Threats
Recognise your
Weakness
Tools for Strategy Formulation
1048710 SO Strategies Use strengths to take advantage of Opportunities
1048710 WO Strategies Overcome weaknesses to takeadvantage of Opportunities
1048710 ST Strategies Use Strengths to avoid Threats1048710 WT Strategies Minimize Weaknesses and avoid
Threats
Do your SWOT Analysis Identify Traits within yourself Synergize your traits with people traits Do not let a particular trait dominate your
style Build on your Strengths Dilute your
Weaknesses Exploit the Opportunities Avoid the Threats
Identifying Resource Weaknessesand Competitive Deficiencies
1048710 A weakness is something a firm lacks does poorly or a condition placing it at a disadvantage
1048710 Resource weaknesses relate to1048710 Deficiencies in know-how or expertise or competencies1048710 Lack of important physical organizational or intangible
assets1048710 Missing capabilities in key areas
Resource weaknesses and deficiencies arecompetitive liabilities
SWOT Analysis What to Look For
Potential Resource Strengths
Powerful strategy Strong financial conditionStrong brand nameimagereputationWidely recognized as marketleader Proprietary technology Cost advantages Strong communications Product innovationGood customer serviceBetter product qualityAlliances or JVs
Potential Resource Weaknesses
No clear strategic directionObsolete facilitiesWeak balance sheet excess debtMissing some key skillscompetenciesInternal operating problems Falling behind in RampDWeak marketing andcommunications skillsToo narrow product line
SWOT Analysis What to Look For (Cont)
Potential Resource Opportunities
Serving additional ldquocustomerrdquogroups Expanding to new geographic areasExpanding product lineTransferring skills to new productsor servicesTake market share from rivalsAlliances or acquisitionsOpenings to exploit newtechnologiesOpenings to extend brandnameimage
Potential Resource Threats
Entry of potent new competitorsSubstitute products or servicesSlowing market growthAdverse shifts in political oreconomic conditionsCostly new regulationsGrowing leverage of customers orsuppliersReduced buyer needs for product orservicesDemographic changes
Tools for Strategy Formulation
SWOT ANALYSIS
Internal Strengths Weaknesses
External Opportunities Threats
Build on your
Strengths
Evaluate your
Opportunities Research your
Threats
Recognise your
Weakness
Tools for Strategy Formulation
1048710 SO Strategies Use strengths to take advantage of Opportunities
1048710 WO Strategies Overcome weaknesses to takeadvantage of Opportunities
1048710 ST Strategies Use Strengths to avoid Threats1048710 WT Strategies Minimize Weaknesses and avoid
Threats
Do your SWOT Analysis Identify Traits within yourself Synergize your traits with people traits Do not let a particular trait dominate your
style Build on your Strengths Dilute your
Weaknesses Exploit the Opportunities Avoid the Threats
SWOT Analysis What to Look For
Potential Resource Strengths
Powerful strategy Strong financial conditionStrong brand nameimagereputationWidely recognized as marketleader Proprietary technology Cost advantages Strong communications Product innovationGood customer serviceBetter product qualityAlliances or JVs
Potential Resource Weaknesses
No clear strategic directionObsolete facilitiesWeak balance sheet excess debtMissing some key skillscompetenciesInternal operating problems Falling behind in RampDWeak marketing andcommunications skillsToo narrow product line
SWOT Analysis What to Look For (Cont)
Potential Resource Opportunities
Serving additional ldquocustomerrdquogroups Expanding to new geographic areasExpanding product lineTransferring skills to new productsor servicesTake market share from rivalsAlliances or acquisitionsOpenings to exploit newtechnologiesOpenings to extend brandnameimage
Potential Resource Threats
Entry of potent new competitorsSubstitute products or servicesSlowing market growthAdverse shifts in political oreconomic conditionsCostly new regulationsGrowing leverage of customers orsuppliersReduced buyer needs for product orservicesDemographic changes
Tools for Strategy Formulation
SWOT ANALYSIS
Internal Strengths Weaknesses
External Opportunities Threats
Build on your
Strengths
Evaluate your
Opportunities Research your
Threats
Recognise your
Weakness
Tools for Strategy Formulation
1048710 SO Strategies Use strengths to take advantage of Opportunities
1048710 WO Strategies Overcome weaknesses to takeadvantage of Opportunities
1048710 ST Strategies Use Strengths to avoid Threats1048710 WT Strategies Minimize Weaknesses and avoid
Threats
Do your SWOT Analysis Identify Traits within yourself Synergize your traits with people traits Do not let a particular trait dominate your
style Build on your Strengths Dilute your
Weaknesses Exploit the Opportunities Avoid the Threats
SWOT Analysis What to Look For (Cont)
Potential Resource Opportunities
Serving additional ldquocustomerrdquogroups Expanding to new geographic areasExpanding product lineTransferring skills to new productsor servicesTake market share from rivalsAlliances or acquisitionsOpenings to exploit newtechnologiesOpenings to extend brandnameimage
Potential Resource Threats
Entry of potent new competitorsSubstitute products or servicesSlowing market growthAdverse shifts in political oreconomic conditionsCostly new regulationsGrowing leverage of customers orsuppliersReduced buyer needs for product orservicesDemographic changes
Tools for Strategy Formulation
SWOT ANALYSIS
Internal Strengths Weaknesses
External Opportunities Threats
Build on your
Strengths
Evaluate your
Opportunities Research your
Threats
Recognise your
Weakness
Tools for Strategy Formulation
1048710 SO Strategies Use strengths to take advantage of Opportunities
1048710 WO Strategies Overcome weaknesses to takeadvantage of Opportunities
1048710 ST Strategies Use Strengths to avoid Threats1048710 WT Strategies Minimize Weaknesses and avoid
Threats
Do your SWOT Analysis Identify Traits within yourself Synergize your traits with people traits Do not let a particular trait dominate your
style Build on your Strengths Dilute your
Weaknesses Exploit the Opportunities Avoid the Threats
Tools for Strategy Formulation
SWOT ANALYSIS
Internal Strengths Weaknesses
External Opportunities Threats
Build on your
Strengths
Evaluate your
Opportunities Research your
Threats
Recognise your
Weakness
Tools for Strategy Formulation
1048710 SO Strategies Use strengths to take advantage of Opportunities
1048710 WO Strategies Overcome weaknesses to takeadvantage of Opportunities
1048710 ST Strategies Use Strengths to avoid Threats1048710 WT Strategies Minimize Weaknesses and avoid
Threats
Do your SWOT Analysis Identify Traits within yourself Synergize your traits with people traits Do not let a particular trait dominate your
style Build on your Strengths Dilute your
Weaknesses Exploit the Opportunities Avoid the Threats
Build on your
Strengths
Evaluate your
Opportunities Research your
Threats
Recognise your
Weakness
Tools for Strategy Formulation
1048710 SO Strategies Use strengths to take advantage of Opportunities
1048710 WO Strategies Overcome weaknesses to takeadvantage of Opportunities
1048710 ST Strategies Use Strengths to avoid Threats1048710 WT Strategies Minimize Weaknesses and avoid
Threats
Do your SWOT Analysis Identify Traits within yourself Synergize your traits with people traits Do not let a particular trait dominate your
style Build on your Strengths Dilute your
Weaknesses Exploit the Opportunities Avoid the Threats
Tools for Strategy Formulation
1048710 SO Strategies Use strengths to take advantage of Opportunities
1048710 WO Strategies Overcome weaknesses to takeadvantage of Opportunities
1048710 ST Strategies Use Strengths to avoid Threats1048710 WT Strategies Minimize Weaknesses and avoid
Threats
Do your SWOT Analysis Identify Traits within yourself Synergize your traits with people traits Do not let a particular trait dominate your
style Build on your Strengths Dilute your
Weaknesses Exploit the Opportunities Avoid the Threats
Do your SWOT Analysis Identify Traits within yourself Synergize your traits with people traits Do not let a particular trait dominate your
style Build on your Strengths Dilute your
Weaknesses Exploit the Opportunities Avoid the Threats