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SWOT Analysis

Discover how SWOT Analysis, a powerful strategic planning tool, can help businesses define goals, improve capability, and identify threats as opportunities. Learn how to leverage internal strengths and weaknesses to maximize external opportunities and mitigate threats.

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SWOT Analysis

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  1. SWOT Analysis

  2. SWOT Analysis • Strengths • Weaknesses • Opportunities • Threats Analysing a company’s:

  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… Internalstrengths, weaknesses Externalopportunities, threats …separates and compares internal and external influencers:

  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… Strategies S-O W-O S-T W-T

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

  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)

  16. Assess the health of your marketing Cash flow forecasting Quick start business plan tool

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