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:
- 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 ‘
- 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:
- 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
- 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
omnicef 300 mg for sale purchase protonix generic pantoprazole 20mg brand
order oxybutynin 5mg for sale tacrolimus 1mg cost trileptal price
Официальное изготовление дубликатов гос номеров на автомобиль [url=https://avto-dublikat.ru/]изготовление номеров на автомобиль[/url] за 10 минут восстановят номер.
Latvija tiessaistes kazino ir kluvusi arvien popularaki, piedavajot speletajiem iespeju baudit dazadas azartspeles no majam vai celojot. Lai darbotos legali, [url=https://steemit.com/gambling/@kasinoid/gambling-ir-spelu-veids-kas-pamatojas-uz-nejausibas-elementu-kura-speletaji-liek-naudu-uz-kada-notikuma-iznakumu-cerot-uz-uzvaru]https://steemit.com/gambling/@kasinoid/gambling-ir-spelu-veids-kas-pamatojas-uz-nejausibas-elementu-kura-speletaji-liek-naudu-uz-kada-notikuma-iznakumu-cerot-uz-uzvaru [/url]tiessaistes kazino Latvija ir jabut licencetiem no attiecigajam iestadem. Sie kazino piedava plasu spelu klastu, tostarp spelu automatus, galda speles, pokera turnirus un sporta likmju deribas.
order avlosulfon 100mg pill tenormin 100mg tablet tenormin 50mg without prescription
simvastatin 10mg drug order zocor pill sildenafil otc
На этом сайте представлена простая и удобная программа ТВ передач — [url=https://tv-programma1.ru/]программа на сегодня на[/url] на сегодня, на завтра, на неделю.
Deep-fried turkey is delicious, but the process can be dangerous if you don’t know what you’re doing. However, if you follow the steps carefully, you can prepare a tasty turkey dinner for your family and friends! Before frying, always make sure your turkey is fully defrosted in order to avoid explosions when the turkey comes in contact with the frying oil.
https://tinolokolik.com/
This page provides useful information for those who [url=https://tribuneonlineng.com/maximize-your-woodworking-potential-with-a-top-quality-cnc-router-2/]cnc router[/url] are engaged in woodworking and wish to maximize their potential.
sildenafil 50mg ca female viagra order cialis 10mg online cheap
Компания ЗубыПро представляет профессиональные услуги по надеванию, корректировке и снятию брекет-систем [url=https://dom-lady.ru/kak-poluchit-krasivuyu-ulybku-s-pomoshhyu-breketov.html]брекеты под ключ спб[/url] в Санкт-Петербурге.
I enjoy you because of your own effort on this blog. My niece really likes making time for internet research and it’s simple to grasp why. My partner and i notice all regarding the lively ways you present good tricks via the blog and therefore cause participation from people on that subject while our favorite princess is in fact starting to learn a whole lot. Take advantage of the remaining portion of the year. Your performing a dazzling job.
purchase promethazine online purchase modafinil pill guaranteed cialis overnight delivery usa
Whatsminer M50 118T — это новое устройство для майнинга криптовалют [url=https://pancreatus.com/dom/m50-whatsminer-moshhnyj-majningovyj-apparat-s-vysokoj-dohodnostyu.html]m50 whatsminer доходность[/url] обеспечивает высокую производительность и эффективность.
order zetia 10mg for sale order methotrexate sale methotrexate 5mg tablet
purchase levofloxacin online cheap generic levaquin 250mg buy zyban 150 mg for sale
Woodworking has been a staple craft for centuries [url=https://easybranches.com/financial/]https://easybranches.com/financial/[/url] but the introduction of modern technology has brought about new advancements in the field.
Woodworking has been a staple craft for centuries [url=https://techstory.in/technology-advancements-in-wood-laser-cutting-machines/]https://techstory.in/technology-advancements-in-wood-laser-cutting-machines/[/url] but the introduction of modern technology has brought about new advancements in the field.
Мы предлагаем широкий спектр услуг по перетяжке мебели [url=https://csalon.ru/]Перетяжка мягкой мебели[/url] от классических до современных стилей.
Your point of view caught my eye and was very interesting. Thanks. I have a question for you.
mexican pharmacies shipping to usa
https://canadianpharmacyquick.com/
buying drugs canada
Сайт казино JVspin имеет зарегистрированную лицензию [url=https://aleksandra-m.ru/]бонусы Жвспин казино[/url] от компании Curacao Gaming License.
medex drug order warfarin 2mg allopurinol 100mg us
Перетяжка мебели становится все более популярным способом обновления интерьера [url=https://peretyazhka-bel.ru/]перетяжка[/url] и продления срока службы любимых предметов.
canadian pharmacy voltaren
На сайте krovlya-tmb.ru вы найдете широкий выбор качественных материалов для кровли [url=http://krovlya-tmb.ru/]магазин кровли[/url] предлагаются по выгодным ценам.
top rated canadian pharmacies
order cetirizine 5mg buy strattera 25mg generic order sertraline 50mg online cheap
canadian pharmacies without an rx
cost cenforce 50mg chloroquine cost purchase glucophage generic
cheap pharmacy
https://canadianpharmacyquick.com/
legitimate canadian mail order pharmacies
buy cheap escitalopram buy revia 50mg without prescription cost revia 50 mg
reputable canadian mail order pharmacy
canadian pharmacy usa
buy generic atorvastatin 10mg sildenafil for men cheap viagra pills
aarp approved canadian pharmacies
usa online pharmacy
https://canadianpharmaciestotal.com/
online pharmacies no prescription required pain medication
my discount pharmacy
cialis 20mg drug buy erectile dysfunction pills medicine for impotence
tadalafil 40mg over the counter buy no rx cialis gnc ed pills
canada drugs online pharmacy
https://canadianpharmaciestotal.com/
best rated canadian pharmacy
stromectol for humans for sale order prednisone 20mg pill buy isotretinoin without prescription
buy generic provigil for sale deltasone cost prednisone 10mg tablet
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 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
oral amoxicillin buy azithromycin 250mg for sale prednisolone without prescription
canadian online pharmacies legitimate
https://allcanadianpharm.com/
top rated online pharmacy
canada pharmaceuticals online
https://allcanadianpharm.com/
online drugstore
legitimate canadian mail order pharmacy
I have learn several excellent stuff here. Definitely price bookmarking for revisiting. I surprise how so much effort you put to create this type of wonderful informative site.
isotretinoin 40mg price order isotretinoin generic buy azithromycin