5-6

SWOT

SStrengthstrengths

OOpportunitiespportunities

WWeaknesseseaknesses

TThreatshreats

Aim of SWOT Analysis

Take advantage of strengths and opportunities

Minimize weaknesses and eliminate threats

Strengths Internal positive aspects that are under control

and upon which you may capitalize in planningWhat are your advantages?What do you do well?What do others see as your strengths?

Start-up Business Example

A SWOT strength could be:Your specialist marketing expertise.A new, innovative product or service.Location of your business.Quality processes and procedures.Any other aspect of your business that adds

value to your product or service.

WeaknessesInternal negative aspects that

are under your control and that you may plan to improveWhat could be improved?What is done badly?What should be avoided?

Start-up Business Example

A SWOT weakness could be:Lack of marketing expertise.Undifferentiated products or services (i.e. in

relation to your competitors).Location of your business.Poor quality goods or services.Damaged reputation.

Opportunities Positive external conditions that you do not

control but of which you can plan to take advantageWhere are the good chances facing you?What are the interesting trends?What changes in technology are taking

place?What changes in social patterns, population

profiles, lifestyle changes?Local events?

Start-up Business Example

A SWOT opportunity could be: A developing market such as the Internet. Mergers, joint ventures or strategic alliances. Moving into new market segments that offer

improved profits. A new international market. A market vacated by an ineffective competitor.

Threats Negative external conditions that you do not

control but the effect of which you may be able to lessenWhat obstacles do you face?What is your competition doing?Are the required specifications for your

business, products or services changing? Is changing technology threatening your

business?Do you have bad debt or cash-flow problems?Could any of your weaknesses seriously

threaten your business?

Start-up Business Example

A SWOT threat could be:A new competitor in your home market.Price wars with competitors.A competitor has a new, innovative product or

service.Competitors have superior access to

channels of distribution.Taxation is introduced on your product or

service.

Areas to Concentrate on for SWOT

Finance –availability of loans Operations – location, labor productivity, quality

control, customer responsiveness Administration – quality of staff, communication,

delegation Marketing – market share, service reputation,

customer service, advertising effectiveness Personnel – salary/rewards, recruiting, training,

teamwork

Final Recommendations

S - W – O – T Analysis Provide concrete insights

recommending ways to improve and broaden their business’s success.

Strengths/Weaknesses Analysis

  Internal Performance

  Major Strength Minor Strength

Neutral Minor Weakness

Major Weakness

  

         

  

         

  

         

  

         

  

         

  

         

  

         

Strengths/Weaknesses Analysis