4. BENEFIT OF SWOT ANALYSIS
SWOT Analysis is a very effective way of
identifying your Strengths and Weaknesses,
and of examining the Opportunities and
Threats you face.
Holding out an analysis using the SWOT
framework helps you to concentrate your
activities into areas where you are strong and
where the greatest opportunities lie.
5. SWOT ANALYSIS APPLICATION
Examples of SWOT analysis can be used to
assess:
A business idea
A company (its position in the market, etc.)
A new market or launching a new product
A method of sales distribution
Launching a new product or brand
Etc.
6. HOW TO USE SWOT ANALYSIS:
STRENGTHS
To carry out a SWOT Analysis write down
answers to the following questions. Where
appropriate, use similar questions:
What competitive advantages do you
have?
What do you do well and naturally?
What resources do you have access to?
What do people see as your strengths?
7. HOW TO USE SWOT ANALYSIS:
STRENGTHS
Consider this from your own point of view and
from the point of view of the people you deal
with.
Don't be overly modest. Just being realistic.
If you are experiencing any trouble with this, try
writing down a list of your characteristics. Some of
these will hopefully be strengths!
In looking at your strengths, think about them in
relation to your competitors - for instance, if all your
competitors provide high quality products, then a high
quality production process is not a force in the market, it
is a requirement.
8. HOW TO USE SWOT ANALYSIS
WEAKNESSES:
To carry out a SWOT Analysis write down answers to
the following questions.
What could you do to improve them?
What do you miss badly?
What you should avoid?
Look at this from an internal and external basis:
Do other people seem to perceive weaknesses that you do
not see?
Are your competitors doing any better than you?
It is best to be realistic now, and face any unpleasant
truths as soon as possible.
9. HOW TO USE SWOT ANALYSIS
OPPORTUNITIES:
To hold out a SWOT Analysis write down
solutions to the following queries.
Where are the good opportunities facing you?
What are the interesting trends you are mindful
of?
10. HOW TO USE SWOT ANALYSIS
OPPORTUNITIES:
Useful opportunities can arrive from such things as:
Changes in technology and markets on both a broad and
narrow scale
Changes in government policy related to your line of business
Changes in social practices, population profiles, life style
alterations, etc.
Local Events
A useful approach to looking at opportunities is to look
at your strengths and ask yourself whether these open
up any opportunities. Instead, attend at your
weaknesses and ask yourself whether you could open
up opportunities by doing away with them.
11. HOW TO USE SWOT ANALYSIS
THREATS:
To hold out a SWOT Analysis write down solutions to the
following queries:
What obstacles did you face?
What is your competition doing differently?
Are the required specs for your job, products or services
changing?
Is changing technology threatening your status?
Cause you have bad debt or cash-flow problems?
Could any of your weaknesses seriously threaten your job?
Bearing out this analysis will often be illuminating - both
in terms of pointing out what needs to be managed, and
in putting problems into perspective.
12. SWOT ANALYSIS
STRENGTHS
List your
+ advantages
+ unique and low cost
resources
+factors mean that you “get
the sale”
WEAKNESSES
List your
+ disadvantages, limitations
what could you improve
+factors lose you sales
OPPORTUNITIES
List your
+ chances to improves
performance
+good opportunities can you
spot
THREATS
List your
+ external trouble for the
business
+ obstacles do you face
+ what your competitors are
doing
13. SAMPLE SWOT ANALYSIS
POSITIVE NEGATIVE
INTERNAL
FACTORS
STRENGTHS
- Your specialist marketing
expertise
- A new, innovative product or
service
- Location of your business
- Any other aspect of your
business that adds value to your
product or service
- 4Ps
WEAKNESSES
- Lack of marketing expertise
- Undifferentiated products or services
- Location of your services
- Poor quality goods or services
- Damaged reputation
EXTERNAL
FACTORS
OPPORTUNITIES
- A developing market such as the
internet
- Mergers, joint ventures or
strategic alliances
- - moving into new market
segments that offer improved
profits
- A new international market
- A market vacated by an
ineffective competitor
THREATS
- A new competitor in your home
market
- Price wars with competitors
- A competitor has a new, innovative
product or service
- Competitors have superior access
to channels of distributions
- Taxation is introduced on your
product or services
