2. SWOT analysis is a structured
planning method used to
evaluate the Strengths,
Weaknesses, Opportunities, and
Threats involved in a project or
in a business venture. A SWOT
analysis can be carried out for a
product, place, industry or
person.
4. Strength:
Characteristics of the business or team that give it
an advantage over others in industry
Positive tangible & intangible attributes internal to an
organization
Beneficial aspects of the organization, which include
human competencies, process capabilities, financial
resources, products & services, customer goodwill &
brand loyality.
Example: abundant financial resources, well-known
brand name, economics of scale, lower cost, superior
management talent, better marketing skill, good
distribution skill, comitted employess.
5. Weakness:
→Characteristics that place the firm at a
disadvantage relative to others
→Detract the organization from its ability
to attain the core goal & influence its
growth
→weakness are the factors which don’t meet
the standards they should meet. However,
Weakness are controllable & must be
minimized & eliminated.
→Example: Limited financial source; weak
spending in R&D; very narrow product line;
limited distribution; higher cost; out-of-date
products/technology; weak market image;
poor marketing skills; limited management
skills; under trained employees.
6. Opportunities:
Chances to make greater profits in the environment.
External attractive factors that represent the reason for an
organization to exist & develop.
Arise when an organization can take benefit of conditions in its
environment to plan & execute strategies that enable it to become
more profitable.
Organization should be careful & recognize the opportunities &
grasp them whenever they arise from market, competition,
government, technology.
Example: Rapid market growth; rival firms are complacent;
changing customer needs, tastes; new uses for product discover;
economic boom; government deregulation, sales decline for
substitute product.
7. Threats:
External elements in the
environment that could cause trouble
for the business.
External factors beyond an
organization’s control.
Arise when conditions in external
environment jeopardize the reliability
& profitability of the organization’s
business.
Example: Entry of foreign
competitors; introduction of new
substitute products; product life cycle
in decline; changing customer needs,
tastes; rival firms adopt new
strategies; increased government
regulation; economic downturn.
9. Summary
Whatever courses of action is
decided there is four-concerns that
SWOT analysis prompts to move in
a balanced way throughout
program. It reminds to:
Build on own strengths
Minimize own weaknesses
Seize opportunities
Counteract threats
