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SWOT summary
SWOT summary
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SWOT summary


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Overview of the SWOT Analysis

Overview of the SWOT Analysis

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  • 1. SWOT – An Overview
    • A SWOT Analysis is a strategic planning tool used to evaluate the S trengths, W eaknesses, O pportunities, and T hreats involved in a project or in a business venture or in any other situation of an organization or individual requiring a decision in pursuit of an objective.
    • It involves monitoring the marketing environment internal and external to the organization or individual.
    • The technique is credited to Albert Humphrey, who led a research project at Stanford University in the 1960s and 1970s using data from the Fortune 500 companies.
  • 2.  
  • 3. SWOT’s Aim
    • The aim of any SWOT analysis is to identify the key internal and external factors that are important to achieving the objective.
    • SWOT analysis groups key pieces of information into two main categories:
      • Internal factors - The 'strengths' and 'weaknesses' internal to the organization.
      • External factors - The 'opportunities' and 'threats' presented by the external environment.
  • 4. Strengths & Weaknesses: Some Examples
    • Strengths and Weaknesses
    • Resources: financial, intellectual, locational
    • Customer service
    • Efficiency
    • Competitive advantages
    • Infrastructure
    • Quality
    • Staff
    • Management
    • Price
    • Delivery time
    • Cost
    • Capacity
    • Strong relationships with key industry customers
    • Strong Brand and Reputation in the Market
  • 5. Opportunity & Threats: Some Examples
    • Opportunities and Threats
    • Political/Legal
    • Economic condition
    • Expectations of stakeholders
    • Technology
    • Public expectations
    • Competitors and competitive actions
  • 6. Errors To Be Avoided:
    • The following errors have been observed in published accounts of SWOT analysis:
    • 1. Conducting a SWOT analysis before defining and agreeing upon an objective (a desired end state). SWOTs should not exist in the abstract. They can exist only with reference to an objective. If the desired end state is not openly defined and agreed upon, the participants may have different end states in mind and the results will be ineffective.
    • 2. Opportunities external to the company are often confused with strengths internal to the company. They should be kept separate.
    • 3. SWOTs are sometimes confused with possible strategies. SWOTs are descriptions of conditions, while possible strategies define actions. This error is made especially with reference to opportunity analysis. To avoid this error, it may be useful to think of opportunities as "auspicious conditions".