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SWOT
Analysis
What is SWOT Analysis?
 The SWOT Analysis is an important
strategic tool. It helps companies make
sound strategic decisions by looking at
their controllable/internal environment,
   look at the external/uncontrollable
              environment.
Internal vs. External Environments
In analyzing a company’s current strategic
  position, it is important to look at what the
    company has control of (the internal
  environment), and what it does not have
    control of (the external environment).
The Internal Environment
The Internal Environment of a company
    includes the things the company can
    control. These are the Strengths and
                 Weaknesses.
When you look at the these, look not only
from the company’s point of view, but also
   from the point of view of outsiders. Be
        realistic in your assessment.
Strengths
       Your strengths should cover:
            What do you do well?
      What advantages do you have?
  What resources do you have access to?
  What do others see as your strengths?
  This is a good starting point, but not a
limiting point in your analysis of strengths.
Weaknesses
      Your weaknesses should cover:
            What do you do badly?
  What are things that need improvement?
   What do you do that you should avoid?
Again, this is a good starting point, but try to
  look beyond these questions in analyzing
                  weaknesses.
The External Environment
The External Environment is everything that is
   outside of the company’s control.
These are the Opportunities and Threats.
1. Legal
2. Political
3. Social
4. Economic
     1.   “...demand for...”
5.    Technological
6.    Global
7.    Competitive
8.    environmental
Opportunities & Threats
 Opportunities- What elements of the
 external environment could benefit the
               company?

Threats- What elements of the external
environment could hurt to the company?
What Next?
Now that you have identified the company’s
  Strengths, Weaknesses, Opportunities,
 and Threats, it’s time to put them together
     and understand what they mean.
Leverage

Leverage is when a strength allows you to take
        advantage of an opportunity.

        Internal (Controllable)   LEVERAGE   External (Uncontrollable)



               Strengths               Opportunities


               Weakness                  Threats
Constraint

Constraint is when a weakness prevents you
 from taking advantage of an opportunity.

      Internal (Controllable)       External (Uncontrollable)



             Strengths          Opportunities
                  CONSTRAINT

             Weakness            Threats
Vulnerability

Vulnerability is when a threat attacks a
                 strength.

    Internal (Controllable)        External (Uncontrollable)



           Strengths          Opportunities
                              VULNERABILITY

           Weakness            Threats
Problem

Problem is when a threat attacks a weakness.


       Internal (Controllable)         External (Uncontrollable)



              Strengths          Opportunities


              Weakness             Threats

                                 PROBLEM
SWOT Analysis
Internal (Controllable)                   External (Uncontrollable)
                           LEVERAGE




Strengths                             Opportunities

              CONSTRAINT               VULNERABILITY




Weakness                               Threats
                            PROBLEM
SWOT Analysis
Once you have identified the Leverages,
Constraints, Vulnerabilities, and Problems
   facing the company, you can make
  recommendations for the company to
  move forward and improve its market
                position.

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Complete SWOT Analysis (with Leverage, Constraints, Vulnerabilities, and Problems).

  • 2. What is SWOT Analysis? The SWOT Analysis is an important strategic tool. It helps companies make sound strategic decisions by looking at their controllable/internal environment, look at the external/uncontrollable environment.
  • 3. Internal vs. External Environments In analyzing a company’s current strategic position, it is important to look at what the company has control of (the internal environment), and what it does not have control of (the external environment).
  • 4. The Internal Environment The Internal Environment of a company includes the things the company can control. These are the Strengths and Weaknesses. When you look at the these, look not only from the company’s point of view, but also from the point of view of outsiders. Be realistic in your assessment.
  • 5. Strengths Your strengths should cover: What do you do well? What advantages do you have? What resources do you have access to? What do others see as your strengths? This is a good starting point, but not a limiting point in your analysis of strengths.
  • 6. Weaknesses Your weaknesses should cover: What do you do badly? What are things that need improvement? What do you do that you should avoid? Again, this is a good starting point, but try to look beyond these questions in analyzing weaknesses.
  • 7. The External Environment The External Environment is everything that is outside of the company’s control. These are the Opportunities and Threats. 1. Legal 2. Political 3. Social 4. Economic 1. “...demand for...” 5. Technological 6. Global 7. Competitive 8. environmental
  • 8. Opportunities & Threats Opportunities- What elements of the external environment could benefit the company? Threats- What elements of the external environment could hurt to the company?
  • 9. What Next? Now that you have identified the company’s Strengths, Weaknesses, Opportunities, and Threats, it’s time to put them together and understand what they mean.
  • 10. Leverage Leverage is when a strength allows you to take advantage of an opportunity. Internal (Controllable) LEVERAGE External (Uncontrollable) Strengths Opportunities Weakness Threats
  • 11. Constraint Constraint is when a weakness prevents you from taking advantage of an opportunity. Internal (Controllable) External (Uncontrollable) Strengths Opportunities CONSTRAINT Weakness Threats
  • 12. Vulnerability Vulnerability is when a threat attacks a strength. Internal (Controllable) External (Uncontrollable) Strengths Opportunities VULNERABILITY Weakness Threats
  • 13. Problem Problem is when a threat attacks a weakness. Internal (Controllable) External (Uncontrollable) Strengths Opportunities Weakness Threats PROBLEM
  • 14. SWOT Analysis Internal (Controllable) External (Uncontrollable) LEVERAGE Strengths Opportunities CONSTRAINT VULNERABILITY Weakness Threats PROBLEM
  • 15. SWOT Analysis Once you have identified the Leverages, Constraints, Vulnerabilities, and Problems facing the company, you can make recommendations for the company to move forward and improve its market position.