1. Presented by
SANJAY GUPTA
SANJIT THAPA

2. SWOT analysis
 A widely used framework for organizing and using data and
information gained from situation analysis
 One of the most effective tools in the analysis of environmental
data and information
 A SWOT analysis generates information that is helpful in matching
an organization’s or a group’s goals, programs, and capacities to
the social environment in which they operate

3. Cont………
 It is an instrument within strategic planning
 Encompasses both internal and external environments

4. SWOT
• Factors affecting an organization can usually be classified as:
• Internal factors
– Strengths (S)
– Weaknesses (W)
Strengths Weaknesses
• External factors
– Opportunities (O)
– Threats (T)
Opportunities Threats

5. SWOT: internal factors
Strengths
 Positive tangible and intangible attributes, internal to an organization.
They are within the organization’s control
 Beneficial aspect of the organization or the capabilities of an
organization, which includes human competencies, process capabilities.
Financial resources, product and services, customer goodwill and brand
loyalty

6. SWOT: internal factors
 Strength are good for the company to take competitive advantage from
the market.
 Strengths are important to provide extra energy to compete in the market
is relation to the competitors

7. SWOT: internal factors cont....
Example
– Well-know brand name
– Lower cost ( raw materials or process)
– Better marketing skill
– Committed employee
– Price, value, quality

8. SWOT: internal factors
Weakness
 Weakness arise due to a lack of important skills and expertise,
physical and weak competitive capabilities in key areas
 Factors that are within an organization’s control that detract from its
ability to attain the core goal. In which areas might the organization
improve?
 Characteristic that place the firm at a disadvantage relative to
others.

9. SWOT: internal factors cont....
 Detract the organization from its ability to attain the core goal and
influence its growth
 Weakness are the factors which do not meet the standards we feel
they should meet, however weakness are controllable. The must
be minimized and eliminated

10. SWOT: internal factors cont....
Examples
 Limited distribution
 Higher cost
 Out of date product / technology
 Poor marketing skill
 Limited management skills

11. SWOT: external factors
Opportunities
 Opportunity is a situation where a company will gain something by
planning and exploiting its resources strategically
 Arise when an organization can take benefit of conditions in its
environment to plan and execute strategic that enable it to become
more profitable
 Every firm has to use its internal resources strategically to get the
opportunity from the external environment

12. SWOT: external factors cont....
 Chance to make greater profits in the environment –external
attractive factor that represent the reason for an organization to
exist and develop
 Organization should be careful and recognize the opportunity may
arise, opportunities may arise from market, competition, internet/
government/ technology

13. SWOT: external factors cont....
Examples
 Rapid market
 Rival firms are complacent
 Changing customer needs/wants
 New users of product discover
 Technology development and innovation
 Market response to tactics, e.g., surprise

14. SWOT: external factors cont....
Threats
 Threats represent an unfavorable situation for a company
restraining to compete and make profits
 Situation arise when there is an increasing number of competing
firms in the industry, slow pace of market growth, increasing
bargaining power of the supplier or customers etc..

15. SWOT: external factors cont....
 External elements in the environment that could cause trouble for
the business-external factors, beyond an organization control
which could place the organization mission or operation at risk
 Threats are uncontrollable, when a threat comes the stability and
survival can ne at stake
 Classify them by their “seriousness” and “probability of occurrence

16. SWOT: external factors cont....
Examples
 Entry of foreign competitors
 Introduction of new substitute products
 Product life cycle in decline
 Increased government regulation
 Political effects
 New technologies, services, ideas

17. The end