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SWOT Analysis
A tool for situational analysis
Environmental factors internal to the organization are classified as Strengths (S) and Weakness (W).
External factors are referred to
Opportunities (O) and Threats (T)
A scan of the internal and the external environment is an important part of
strategic planning process.
An analysis of the strategic environment is referred to as
SWOT/SCOT
Analysis
RESOURCES
CAPABILITIES
COMPETITIVE ENVIRONMENT
ENVIRONMENTAL SCAN
INTERNAL ANALYSIS EXTERNAL ANALYSIS
STRENGTHS WEAKNESSES
OPPORTUNITIES THREATS
STRENGTHS
They are resources and capabilities that can be used as a basis to develop a competitive advantage.
Eg : An access to proprietary know-how Patents
WEAKNESS
Absence of certain strengths or the flip side of the strength
Eg : A poor reputation High Cost structure
OPPORTUNITIES
The external environment may reveal certain opportunities for growth and development.
Eg : Loosening of regulations. Removal of international trade
barriers
THREATS
Changes in external environment may present certain threats
Eg. Shift in consumer taste Emergence of substitute product New regulations Increased trade barries
SWOT - AnalysisSTRENGTHSSTRENGTHS WEAKNESSWEAKNESS
OPPORTUNITIESOPPORTUNITIES THREATSTHREATS
SWOT to TOWS Matrix
Strengths-Strengths-MaximizeMaximize
Weakness-Weakness-MinimizeMinimize
Strengths-Strengths-MaximizeMaximize
Opportunities-Opportunities-MaximizeMaximize
Strengths-Strengths-MaximizeMaximize
Threats-Threats-MinimizeMinimize
Weakness-Weakness-MinimizeMinimize
Opportunities-Opportunities-MaximizeMaximize
Weakness-Weakness-MinimizeMinimize
Threats-Threats-MinimizeMinimize
Opportunities-Opportunities-MaximizeMaximize
Threats-Threats-MinimizeMinimize
S-W Strategies
Identify ways that firm can use its strengths to reduce the impact of its weaknesses.
S-T Strategies
Identify ways that firm can use its strengths to reduce its vulnerability to external threats
S-O Strategies :
To pursue opportunities that are a good fit for the company’s strength.
W-O Strategies
Overcome weakness to pursue opportunities
W-T Strategies
Establish a defense plan to prevent the firm’s weaknesses from making it highly susceptible to external strengths
O-T Strategies :
To pursue opportunities that can overcome threats to the company’s.
Decision
• Micro level, Macro level.
• Structural, Process
• Immediate, Short term, Long term
• Individual, Group, Organizational
Impact
Impact
Impact
Impact
Impact
Impact
