S.W.O.T. Analysis

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S.W.O.T. Analysis Factors Internal to Organization Factors External to Organization Strengths Opportunities Weakness Threats

A SWOT analysis generates information that is helpful in matching an organization or group’s goals, programs, and capacities to the social environment in which it operates. Factors internal to the firm usually can be classified as strengths ( S ) or weaknesses ( W ), and those external to the firm can be classified as opportunities ( O ) or threats ( T ). It is an instrument within strategic planning. When combined with dialogue it is a participatory process SWOT: Description

A SWOT analysis generates information that is helpful in matching an organization or group’s goals, programs, and capacities to the social environment in which it operates.

Factors internal to the firm usually can be classified as strengths ( S ) or weaknesses ( W ), and those external to the firm can be classified as opportunities ( O ) or threats ( T ).

It is an instrument within strategic planning.

When combined with dialogue it is a participatory process

Strengths Positive tangible and intangible attributes, internal to an organization. They are within the organization’s control. Weakness Factors that are within an organization’s control that detract from its ability to attain the core goal. Which areas might the organization improve? SWOT: Internal Factors

Strengths

Positive tangible and intangible attributes, internal to an organization. They are within the organization’s control.

Weakness

Factors that are within an organization’s control that detract from its ability to attain the core goal. Which areas might the organization improve?

Opportunities External attractive factors that represent the reason for an organization to exist and develop. What opportunities exist in the environment, which will propel the organization? Identify them by their “time frames” Threats External factors, beyond an organization’s control, which could place the organization mission or operation at risk. The organization may benefit by having contingency plans to address them if they should occur. Classify them by their “seriousness” and “probability of occurrence”. SWOT: External Factors

Opportunities

External attractive factors that represent the reason for an organization to exist and develop. What opportunities exist in the environment, which will propel the organization?

Identify them by their “time frames”

Threats

External factors, beyond an organization’s control, which could place the organization mission or operation at risk. The organization may benefit by having contingency plans to address them if they should occur.

Classify them by their “seriousness” and “probability of occurrence”.

Strengths can be defined to include in past/historical accomplishments – history and tradition and so forth. Strengths also refer to the present – conditions that define an advantageous market position or a current situational condition. S.W.O.T Analysis - Strengths

Strengths can be defined to include in past/historical accomplishments – history and tradition and so forth.

Strengths also refer to the present – conditions that define an advantageous market position or a current situational condition.

Like strengths, weaknesses can refer to past difficulties that have contributed to the current situation as well conditions derived from the current marketing climate. Weaknesses may be factual or fictional in any case perception is reality for the marketer. S.W.O.T Analysis - Weaknesses

Like strengths, weaknesses can refer to past difficulties that have contributed to the current situation as well conditions derived from the current marketing climate.

Weaknesses may be factual or fictional in any case perception is reality for the marketer.

Opportunities are defined as possibilities that have not become realities at the current time – while they are primarily future focused they can occur in the present or in the short term. S.W.O.T Analysis - Opportunities

Opportunities are defined as possibilities that have not become realities at the current time – while they are primarily future focused they can occur in the present or in the short term.

Similar to Opportunities, Threats can be defined as potential problems. A threat, like an opportunity can exist in the present if that particular situation has not directly impacted the marketing conditions. In fact, it is common for threats to be current market conditions outside the geographic scope of a particular organization. S.W.O.T Analysis - Threats

Similar to Opportunities, Threats can be defined as potential problems. A threat, like an opportunity can exist in the present if that particular situation has not directly impacted the marketing conditions. In fact, it is common for threats to be current market conditions outside the geographic scope of a particular organization.

Example: ZARA FASHION Internal Factors Analysis Centralized distribution system Weaknesses Fast delivery of new products, design and trends Information Tech Efficient distribution Different Strategy (customization, unique competences) Cost leadership strategy (standardization) Strength

Example: ZARA FASHION External Factors Analysis Lack of vertical integration Product cannibalism Global competitors Local Competitors Threats Distribution center in the US Online market Global market penetration Opportunities

SWOT Matrix W-T strategies: defensive actions vs. susceptible areas S-T strategies: use success to minimize threats Threats W-O strategies: use opportunities to address weaknesses S-O strategies: build on success Opportunities Weaknesses Strengths

S-O strategies: build on success, good practices, models. S-T strategies: use success to minimize threats. W-O strategies: use opportunities to address weaknesses. W-T strategies: defensive actions vs. susceptible areas. SWOT strategies

S-O strategies: build on success, good practices, models.

S-T strategies: use success to minimize threats.

W-O strategies: use opportunities to address weaknesses.

W-T strategies: defensive actions vs. susceptible areas.

SWOT analysis can be very subjective. Do not rely on it too much. Two people rarely come-up with the same final version of SWOT. Use it as guide and not a prescription. Concern

SWOT analysis can be very subjective. Do not rely on it too much. Two people rarely come-up with the same final version of SWOT.

Use it as guide and not a prescription.

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