SWOT Analysis: An
Introduction
SWOTAnalysis is a strategic tool for evaluation. It helps understand a
company's position by analyzing Strengths, Weaknesses, Opportunities,
and Threats. This framework supports informed decision-making. We
will explore a local coffee business example to illustrate the concepts
clearly.
by Asbi Gafri Ihsan
2.
Strengths: Internal
Advantages
Definition
Internal advantagesthat set a
company apart.
Examples
• Strong, recognizable brand
• Efficient production
technology
• Experienced management
team
• High customer loyalty
Identification
Thorough internal evaluation reveals key strengths.
3.
Weaknesses: Internal
Limitations
Definition
Internal constraintsthat hinder
performance.
Examples
• Lack of financial resources
• Dependence on a single
supplier
• Slow innovation processes
• Limited distribution network
Identification
Internal assessment highlights areas for improvement.
Threats: External Risks
Definition
Externalfactors that could
harm a business.
Examples
• Fierce competition
• Changing customer
preferences
• Global economic crisis
• Stricter regulations
Identification
Monitor external environment for threats to adapt.
6.
SWOT Matrix: CombiningFactors
SO (Strengths-
Opportunities)
Leverage strengths to
capitalize on opportunities.
ST (Strengths-
Threats)
Use strengths to
counteract external
threats.
WO (Weaknesses-
Opportunities)
Address weaknesses by
taking advantage of
opportunities.
WT (Weaknesses-
Threats)
Minimize weaknesses and
avoid threats.
7.
SO Strategy: Strengthsto Capture Opportunities
Innovate
Develop new products for a growing market.
Expand
Grow market share using strong brand presence.
Leverage
Utilize efficient production to meet demand quickly.
8.
ST Strategy: Using
Strengthsto Mitigate
Threats
Improve Efficiency
Enhance processes to lower costs and compete on price.
Build Loyalty
Strengthen customer relationships to withstand
competition.
9.
WO & WTStrategies: Addressing Weaknesses
and Risks
WO
Seek funding to boost innovation and capitalize on
opportunities.
WT
Diversify products to reduce risk and avoid threats.
10.
Conclusion: The Powerof
SWOT
Importance
SWOT is key for effective strategic planning.
Implementation
Develop strategies based on SWOT insights.
Adaptation
Regularly revise SWOT to stay aligned with changes.
Final Thought
Use SWOT to drive business success sustainably.