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SWOT Analysis

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by

John Blechacz

on 4 October 2013

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Transcript of SWOT Analysis

SWOT Analysis
SWOT Analysis
A planning method used to evaluate Strengths, Weaknesses, Opportunities, and Threats
Strengths
Weaknesses
Opportunities
Threats
SWOT
What advantages does your organization have?
What do you do better than anyone else?
What unique resources do you have available that others do not?
What are your strengths?

Strengths
In what areas do you struggle?
What could you improve on?
What should you avoid?
What limitations exist in your business?
What factors cause you to lose sales?

Weaknesses
What could you improve?
What should you avoid?
What are people in your market likely to see as weaknesses?
What factors lose you sales?

Opportunities
What opportunities exist out there?
What additions can your business support?
What interesting trends are you aware of?

Opportunities
Changes in technology and markets.
Changes in government policy.
Changes in social patterns, population profiles, lifestyle changes, and so on.
Changes to customer demands.
Opportunities Can Come From:
When identifying strengths, use the perspective of others
Customers
Competitors

Strengths
These are internal factors which means you can control them.

Strengths
We have the fastest response times
(within 3 hours)
Example
We have effective and efficient customer support (24/7)
We have low overhead which keeps costs and expenses low.
We have a strong R&D department with a $1 million budget
As a small, local business we have a great reputation with the community
Again, when identifying weaknesses, use the perspective of others
Customers
Competitors

Weaknesses
We are the smallest company in the industry with only 25 employees.
Example
We only have $7,500 in our 2013 marketing budget.
Our distribution centers can only support 5 stores.
We can only produce 1,000 units per day.
Our business only has 1 vendor.
These are internal factors which means you can control them.

Weaknesses
Strengths
Weaknesses
Opportunities
Threats
S
W
O
T
Strengths
Weaknesses
Opportunities
Threats
S
W
O
T
Internal
Factors
External
Forces
These are areas you do well in
These factors tend to look at the present
Present
Future
These factors tend to look at the present
These are areas you struggle with
Look in the Mirror!
Using the SWOT grid handout, you will perform a SWOT Analysis on your self as a person. You must identify 5 factors/forces for each.
*These must be clear and detailed
These are external factors which means you cannot control them.

These factors tend to look into the future
Opportunities
Consider your strengths to determine if these open up any opportunities.

Also, consider your weaknesses to determine if any opportunities open up by eliminating them.
Globally, television sales are up 25%.
Example
Intel developed a new 64-bit processor that cell phones can support.
The cost per ounce of cooper dropped to $2.00 per pound.
The consumer demands for smaller, more fuel efficient cars is at an all time high.
The U.S. government lifted its trade restriction with China.
What obstacles exist?
What are your competitors doing?
Are standards or laws changing (locally/Globally)?
Is changing technology changing?
Do financial issue exist or could develop?

Threats
Changes in technology and markets.
Changes in government policy.
Changes in social patterns, population profiles, lifestyle changes, and so on.
Changes to customer demands.
Just like Opportunities...
Threats Can Come From:
Threats
These are external factors which means you cannot control them.

These factors tend to look into the future
Threats
Consider your weaknesses to determine if these could lead to future threats.

Again, consider your weaknesses to determine if any opportunities open up by eliminating them.
The U.S. government passes law that limits your marketing strategy.
Example
War/Tensions overseas forces a supplier to limit your order of raw materials.
Your competitor is selling a similar product for 25% less.
The markets have slowed causing your company to lose investors.
New technology has been developed that could cause your product to become obsolete.
These are things you can take advantage of or could possibly help you
These are things that may possible harm you or create obstacles
Full transcript