SWOT Analysis
.
Strengths
.
Weaknesses
.
Opportunities
.
Threats
History of SWOT Analysis
.Developed at Stanford
.Funded by Fortune 500
companies
.Took 9 years to develop
.Involved 5000 interviews
SWOT Analysis is…
… A strategic planning tool that separates
influences on a business’s future success into
internal and external factors.
SWOT Analysis allows businesses to…
.
Define realistic goals
.
Improve capability
.
Overcome weaknesses with strengths
.
Identify threats than can be turned into opportunities
A SWOT Matrix…
Internal
strengths, weaknesses
External
opportunities, threats
A strength
.
Superior product quality
.
Lowest price
.
Best expertise
.
Location
A weakness
.
A tired brand
.
Inferior location
.
High overheads
.
A lack of R&D
An opportunity can be…
.
A regulatory or tax change
.
A high-profile event (marketing opportunity)
.
An untapped market
.
A gap left by a failed competitor
A threat can be…
.
Unfavourable regulation changes
.
A new entrant into the market
.
Problems with the economy
.
Market shrinkage
Strategies
S-O
W-O
S-T
W-T
Matching strengths to opportunities
S-O or Maxi-Maxi strategy
Using a strength to
maximise an opportunity
Matching weaknesses to opportunities
W-O or Mini-Maxi strategy
Improving capability to
maximise an opportunity
Matching strengths to threats
S-T or Maxi-Mini strategy
Minimising a threat with a
strength
Matching weaknesses to threats
W-T or Mini-Mini strategy
Minimising weaknesses and
threats at same time
(often last choice)
