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SWOT Analysis

SWOT Analysis is a strategic planning tool that helps businesses identify internal strengths and weaknesses, as well as external opportunities and threats. By analyzing these factors, companies can set realistic goals, improve capabilities, and turn threats into opportunities. Learn how a SWOT Matrix compares internal and external influencers and discover strategies like S-O, W-O, S-T, and W-T to maximize strengths and minimize weaknesses and threats simultaneously.

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SWOT Analysis

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  1. SWOT Analysis

  2. SWOT Analysis Analysing a company’s: • STRENGTHS • WEAKNESSES • OPPORTUNITIES • THREATS

  3. History of SWOT Analysis • Developed at Stanford • Funded by Fortune 500 companies • Took 9 years to develop • Involved 5000 interviews

  4. SWOT Analysis is… … A strategic planning tool that separates influences on a business’s future success into internal and external factors

  5. SWOT Analysis allows businesses to… • Define realistic goals • Improve capability • Overcome weaknesses with strengths • Identify threats than can be turned into opportunities

  6. A SWOT Matrix… …separates and compares internal and external influencers: INTERNAL: strengths, weaknesses External: opportunities, threats

  7. A strength can be a competitive advantage like… • Superior product quality • Lowest price • Best expertise • Location

  8. A weakness can be a disadvantage such as… • A tired brand • Inferior location • High overheads • A lack of R&D

  9. 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

  10. A threat can be… • Unfavourable regulation changes • A new entrant into the market • Problems with the economy • Market shrinkage

  11. Strategies that can come from SWOT Analysis… S-O W-O S-T W-T

  12. Matching strengths to opportunities Otherwise known as: S-O or Maxi-Maxi strategy Using a strength to maximise an opportunity

  13. Matching weaknesses to opportunities Otherwise known as: W-O or Mini-Maxi strategy Improving capability to maximise an opportunity

  14. Matching strengths to threats Otherwise known as: S-T or Maxi-Mini strategy Minimising a threat with a strength

  15. Matching weaknesses to threats Otherwise known as: W-T or Mini-Mini strategy Minimising weaknesses and threats at same time (often last choice)

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