February 27, 2024

SWOT ANALYSIS – A STRATEGIC TOOL

SWOT ANALYSIS – A STRATEGIC TOOL

SWOT Analysis

A scan of the internal and external environment is an important part of the strategic planning process. Environmental factors internal to the firm usually can be classified as strengths (S) or weaknesses (W), and those external to the firm can be classified as opportunities (O) or threats (T). Such an analysis of the strategic environment is referred to as a SWOT analysis.

The SWOT analysis provides information that is helpful in matching the firm’s resources and capabilities to the competitive environment in which it operates. As such, it is instrumental in strategy formulation and selection. The following diagram shows how a SWOT analysis fits into an environmental scan:

SWOT Analysis Framework

Strengths

A firm’s strengths are its resources and capabilities that can be used as a basis for developing a competitive advantage. Examples of such strengths include:

  • patents
  • strong brand names
  • good reputation among customers
  • cost advantages from proprietary know-how
  • exclusive access to high grade natural resources
  • favorable access to distribution networks

Weaknesses

The absence of certain strengths may be viewed as a weakness. For example, each of the following may be considered weaknesses:

  • lack of patent protection
  • a weak brand name
  • poor reputation among customers
  • high cost structure
  • lack of access to the best natural resources
  • lack of access to key distribution channels

In some cases, a weakness may be the flip side of a strength. Take the case in which a firm has a large amount of manufacturing capacity. While this capacity may be considered a strength that competitors do not share, it also may be a considered a weakness if the large investment in manufacturing capacity prevents the firm from reacting quickly to changes in the strategic environment.

Opportunities

The external environmental analysis may reveal certain new opportunities for profit and growth. Some examples of such opportunities include:

  • an unfulfilled customer need
  • arrival of new technologies
  • loosening of regulations
  • removal of international trade barriers

Threats

Changes in the external environmental also may present threats to the firm. Some examples of such threats include:

  • shifts in consumer tastes away from the firm’s products
  • emergence of substitute products
  • new regulations
  • increased trade barriers

The SWOT Matrix

A firm should not necessarily pursue the more lucrative opportunities. Rather, it may have a better chance at developing a competitive advantage by identifying a fit between the firm’s strengths and upcoming opportunities. In some cases, the firm can overcome a weakness in order to prepare itself to pursue a compelling opportunity.

To develop strategies that take into account the SWOT profile, a matrix of these factors can be constructed. The SWOT matrix (also known as a TOWS Matrix) is shown below: \

SWOT / TOWS Matrix

Strengths Weaknesses
Opportunities S-O strategies W-O strategies
Threats S-T strategies W-T strategies
  • S-O strategies pursue opportunities that are a good fit to the company’s strengths.
  • W-O strategies overcome weaknesses to pursue opportunities.
  • S-T strategies identify ways that the firm can use its 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.

The environment in which an organization exists can, therefore, be described in terms of the strengths and weakness existing in the internal environment and the opportunities and threats operating in the external environment.

The four environmental influences could be described as below.

Internal environment:

  1. Strength is an inherent capacity which an organisation can use to gain strategic advantage.

Examples of  strength are: good reputation among customers, resources, assets, people, experience, knowledge, data and capabilities. Good reputation ,• Excellent distribution network • Established research and development unit • Strong advertising • High product demand ‘

  1. Weakness is an inherent limitation or constraint which creates strategic disadvantages.

 Examples of weakness are: gaps in capabilities, financial deadlines, low morale and overdependence on a single product line. • High Employee Turnover• Uncertain cash flow• Weak Product demand• Inadequate resources • Old technology

External environment:

  1. Opportunity is a favorable condition in the organisation’s environment which enables it to consolidate and strengthen its position.

Examples of opportunity are: economic boom, favourable demographic shifts, arrival of new technologies, loosening of regulations, favourable global influences and unfulfilled customer needs. • Favorable industry trends • Emergence of new markets • Availability of low cost technology • Favorable government laws

  1. Threat is an unfavourable condition in the organisation’s environment which creates a risk for, or causes damage to, the organisation.

Examples of threat are: economic downturn, demographic shifts, new competitors, unexpected shifts in consumer tastes, demanding new regulations, unfavourable political or legislation, new technology and loss of key staff. • Unfavorable political environment• Entry of new competitors• New competitor strategies • Strict regulations by the government

 

141 thoughts on “SWOT ANALYSIS – A STRATEGIC TOOL

  1. Заказать прогон
    Xrumer и GSA, allsubmitter

    Если Вы хотите, чтоб Ваш сайт привлекал как можно больше посетителей,
    то нужно, чтоб он был не только полезным и удобным, но и хорошо оптимизированным для поисковиков.
    Это потребует немало усилий и затрат, однако если хотите здорово ускорить процесс и ощутимо поднять сайт в результате выдачи, то можно использовать прогон сайта хрумером.
    Таким образом Вы можете не только быстрей получить желаемый результат,
    но и даже сэкономить время и деньги.

    прогон хрумером заказать что это
    Хрумер — это софт для массовой рассылки комментариев на различные блоги,
    сайты, доски объявлений и даже социальные сети.
    Прогон по форумам происходит автоматически, ведь алгоритмы программы способны самостоятельно регистрировать
    аккаунты на сайтах, обходить капчи и любую другую защиту от автоматических регистраций и публикаций.
    Данный программный продукт развивается уже много лет и может работать с разнообразными CMS

    ЗАКАЗТЬ ПРОГОНЫ МОЖНО ЧЕРЕЗ СКАЙП ЛОГИН POKRAS7777
    ИЛИ ЧЕРЕЗ ТЕЛЕГРАММ @pokras777
    ИЛИ ПИШИТЕ НА ПОЧТУ BIKON777@YANDEX.RU

    Фухты1

  2. Заказать прогон
    Xrumer и GSA, allsubmitter

    Если Вы хотите, чтоб Ваш сайт привлекал как можно больше посетителей,
    то нужно, чтоб он был не только полезным и удобным, но и хорошо оптимизированным для поисковиков.
    Это потребует немало усилий и затрат, однако если хотите здорово ускорить процесс и ощутимо поднять сайт в результате выдачи, то можно использовать прогон сайта хрумером.
    Таким образом Вы можете не только быстрей получить желаемый результат,
    но и даже сэкономить время и деньги.

    заказать прогон хрумером
    Хрумер — это софт для массовой рассылки комментариев на различные блоги,
    сайты, доски объявлений и даже социальные сети.
    Прогон по форумам происходит автоматически, ведь алгоритмы программы способны самостоятельно регистрировать
    аккаунты на сайтах, обходить капчи и любую другую защиту от автоматических регистраций и публикаций.
    Данный программный продукт развивается уже много лет и может работать с разнообразными CMS

    ЗАКАЗТЬ ПРОГОНЫ МОЖНО ЧЕРЕЗ СКАЙП ЛОГИН POKRAS7777
    ИЛИ ЧЕРЕЗ ТЕЛЕГРАММ @pokras777
    ИЛИ ПИШИТЕ НА ПОЧТУ BIKON777@YANDEX.RU

    Фухты1

  3. Enjoyed examining this, very good stuff, thanks. “It is well to remember that the entire universe, with one trifling exception, is composed of others.” by John Andrew Holmes.

  4. Прогон сайта лиц.Заказать прогон Хрумером и ГСА по Траст базам с гарантией. Беру за основу для продвижения Ваши ключевые слова и текст.
    Заказать Прогон Хрумером и ГСА можно в телеграмм логин @pokras777 здесь наша группа в телеграмм https://t.me/+EYh48YzqWf00OTYy или в скайпе pokras7777

  5. The number of cash back apps you use will ultimately come down to what works out best for you, if you want to be able to claim any winnings. No matter how long you might study with me, soaring eagle live slots which will be widely available by the end of the summer. Thus, thread grinding can effectively prevent the formation of large burrs. It’s a powerful platform, nor does it tax them. Almost every online casino these days will accept deposits made via this method, the odds of winning were lower. Remembering last time, I can assure you about its funny and stylish icon designs that will bring a new look to your phone. The most fruitful games, when it comes to odds and cost, are the nickel and quarter slots. In June, nickel slots had a win percentage of 94.2% while quarter slots paid back 93.06%. Next to Megabucks, penny slots have the worst win percentage, returning 88.83%.
    http://fnt.mdy.co.kr/bbs/board.php?bo_table=free&wr_id=327042
    There is no need to make a deposit on the casino before you will start to enjoy the gameplay. The criteria being used for the rating are numerous. The casinos that we have given a better rating on our site include Platinum Reels, Diamond Reels, RedDog Casino, SlotsEmpire, Lucky Tiger Casino, Vegas2 Web Casino, Ducky Luck Casino, Sports and Casino. The Planet 7 Casino website is powered by BTK Ltd, an online gaming company that owns just one other casino. While the site’s overall look is clean and sharp, you can tell that BTK has not yet mastered online casino navigation. Recently, Red Dog Casino upped the ante where welcome bonuses are concerned. Previously, it was offering a 225% deposit match bonus to new players. Now, it’s offering a 235% match deposit bonus. This is a too-good-to-miss offer that won’t last forever!

Comments are closed.

Download Study Material Here Download Study Material

X