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Strengths Weaknesses
Offensive -
Defensive -
make the most of
watch competition closely
Opportunities these
Adjust - Survive -
restore strengths turn around
Threats
Definition
A process generates information that is helpful in matching an organization or group’s
goals, programs, and capacities to the social environment in which it operates. Note that in itself
is only a data capture - the analysis follows.
Strengths
• Positive tangible and intangible attributes, internal to an organization.
• They are within the organization’s control.
Weakness
• Factors that are within an organization’s control that detract from its ability to attain the
desired goal.
• Which areas might the organization improve?
Opportunities
• External attractive factors that represent the reason for an organization to exist and
develop.
• What opportunities exist in the environment, which will propel the organization?
Identify them by their “time frames”
Threats
• External factors, beyond an organization’s control, which could place the organization
mission or operation at risk.
• The organization may benefit by having contingency plans to address them if they should
occur.
• Classify them by their “seriousness” and “probability of occurrence”.
The origins of the SWOT analysis technique is credited by Albert Humphrey, who led a research
project at Stanford University in the 1960s and 1970s using data from many top companies. The
goal was to identify why corporate planning failed.
Applications
This analysis can be used for:
• Workshop sessions
• Brainstorm meetings
• Problem solving
• Product evaluation
• Competitor evaluation
• Decision Making (with force field analysis)
• Business Planning
• Career development
• Situational analysis
• Strategic planning
• Personal development
• Managing people
• Innovation
How to do a SWOT
Irrespective of whether you or your team are future planning for specific products, work,
personal or any other area, the SWOT analysis process is the same.
In summary:
A SWOT analysis can be very subjective, and two people rarely come-up with the same
final version of SWOT. It is an excellent tool however, for looking at the negative factors first in
order to turn them into positive factors. Use SWOT as guide and not a prescription.
On its own, it is said that a SWOT analysis is meaningless. It works best when part of
an overall strategy or in a given context or situation. This strategy may be as simple as:
1. Goal or objective
2. SWOT analysis
3. Evaluation or measures of success strategy
4. Action
Possible Strengths
Tangible Strengths Intangible Strengths Processes & Systems
• Assets including plant • Do you have a strong • Do you have superior
and equipment recognizable brand or industry knowledge?
• Your business location do you stock strong • Are you involved with
Do you have long-term brands industry associations?
contracts? • Your reputation - are
• Are your product unique you considered a • Is your business
or market leading? market leader? or an Innovative?
• Have you got sufficient expert in your filed?
financial resources to • Do you have good
fund any changes you relationship with your
would like to make? customers? (Goodwill)
• Do you have any cost • Do you have strong
advantages over your relationships with your
competitors? suppliers
• Do you use superior • Do you have a positive
technology in your relationship with your
business? employees
• Is your business high • Do you have any
volume? unique alliances with
other businesses?
• Can your scale up if you • Do you own any patents
need to? or proprietary
technology?
• Do you have a proven
advertising process that
works well?
• Do you have more
experience in your
field?
Possible Weaknesses
Tangible Strengths Intangible Strengths Processes & Systems
• Is your plant and • Do you have a weak or • Do you lack industry
equipment old or unrecognizably brand? knowledge?
outdated? • Do you have a weak or
• Do you lack innovative
• Is your product line too unrecognizable image?
skills?
narrow? • Do you have a poor or
• Have you got impersonal relationship
insufficient financial with your customers?
resources to fund any • Do you have a poor
changes you would like relationship with your
to make? suppliers?
• Do you have a high • Do you have a poor
overall unit cost relative relationship with your
to your competitors? employees?
• Do you use inferior • Is your marketing
technology in your failing to meet
business? objectives?
• Are your managers
• Do you have low
inexperienced?
volume and are
restricted in your ability • Do you have low R&D?
to scale up?
Possible Opportunities
Possible Threats
STRENGTHS WEAKNESS
• Powerful venture capital interest in • High attrition rates, therefore less no.
investing in growth opportunity of people with extensive call centre
experience
OPPORTUNITIES THREATS