SWOT analysis is an organised method used to assess the strengths, weaknesses, opportunities and threats of an organization .

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SWOT Analysis
Organised method used to assess the strengths, weaknesses,
opportunities and threats of a company or a project.
S- Strength = Comparative Advantages
W-Weakness = Disadvantages relative to others
O-Opportunities = Potential business avenues
T- Threats = Potential areas of concern

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SWOT Analysis
Facilitates to uncover opportunities & mitigates risks
Strengths – Internal
Weakness – Internal
Opportunities – External
Threats – External

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SWOT Analysis
Strengths
Company’s USP
Comparative advantages
Human resources
Low production cost
Market Information

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SWOT Analysis
Weakness
Lack of financial resources
Lack of market intelligence
Inadequate infrastructure
unskilled staff

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SWOT Analysis
Opportunities
Change in govt. Policy
New technology
Changing consumer behaviour

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SWOT Analysis
Threat
Strong competition
Fast changing technology
Changing consumer behaviour
Upcoming trends

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SWOT Analysis
Example: A small size company deciding to enter the e-commerce
business
Strengths:
Low Overheads
Low Fixed costs
Ease of market entry
Low start up cost
Education background in technology
High Gross margins

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SWOT Analysis
Weakness:
No experience in e-commerce industry
Lack of financial resources
No proven track record

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SWOT Analysis
Opportunities:
World is the market

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SWOT Analysis
Threats:
Competing against established players
Low entry barrier
Technology may change market place quickly

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SWOT Analysis
Conclusion:
This facilitates companies to draw a strategy for
Entering new markets
Creating market segmentation
Focus on geographical area’s
Brand building
Product development
Decide pricing strategies
And last but not the least provides them insight into the area’s
that need more attention.