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SWOT Analysis
content
 Meaning of swot analysis.
 Factor of swot analysis.
 strength.
 Weakness.
 Opportunities
 Threats
 advantage
 Disadvantage
 What make a swot analysis work
 Aim
 outcome
 Who need swot analysis
 Application
 How to conduct
 Example
 How to make an effective SWOT analysis
SWOT Analysis
 A SWOT analysis is a planning tool used to
understand the Strengths, Weaknesses,
Opportunities, and Threats involved in a
project or in a business.
Techniques
SWOT
Analysis
Strength
Weakness
Threats
Opportunity
ENVIRONMENTS
FACTORS
INTERNAL
STRENGTH WEAKNESS
EXTERNAL
OPPORTUNITY THREATS
Strength
 Characteristics of the business or a
team that give it an advantage over
others in the industry.
 Examples: Abundant financial
resources, well-known brand name,
economic of scale, lower coasts,
superior management talent, better
marketing skills, Good distribution
skills, committed employees.
Weakness
 Characteristics that place the firm at
a disadvantage relative to others.
 Examples: Limited financial
resources, weak spending on
research & development, very narrow
product line, limited distribution,
higher costs, out-of-date products/
technology, weak market image, poor
marketing skills, limited management
skills, under-trained employees.
Opportunities
Chance to make grater profits in
the environment- external
attractive factors that represent
the reason for an organization to
exist & develop.
Examples: Rapid market growth,
rival firms are complacent,
changing customer needs/tastes,
new uses for product discovered,
sales decline for a substitute
product.
Threats
External elements in the
environment that could cause
trouble for the business-
external factors, beyond an
organization’s control
Examples: entry of foreign
competitors, introduction of
new strategies, increased
government regulation,
economic downturn.
ADVANTAGES OF SWOT ANALYSIS
Simplicity
Cost Effective
Promotes Discussion
Wide range of application
Drawbacks of SWOT Analysis
Only as Good as the Ideas Given
Results generated were not accurate if not
done in a group setting
What makes a SWOT analysis work?
• Trust
• Ability and willingness to implement change.
• Diversity
• Time
Aim of SWOT Analysis
• Reveal your competitive advantages
• Analyze your prospects for sales, profitability
and product development
• Prepare your company for problems
• Allow for the development of contingency
plans
OUTCOMES
Strength cause +ve outcome: It leads to
Opportunity.
Weakness cause –ve outcome: It leads to
Threats.
Opportunity
Strength
Threats
Weakness
Who needs SWOT Analysis
Application of SWOT Analysis
A SWOT analysis can be used for:
 Workshop sessions
 Brainstorm meetings
 Problem solving
 Planning
 Product evaluation
 Competitor evaluation
 Personal Development Planning
 Decision Making (with force field analysis)
How to conduct SWOT Analysis
1. Analyze internal & external Environment
Situation
Analysis
Internal
Analysis
Strength Weakness
External
Analysis
Opportunity Threats
2.Perform SWOT Analysis & Document
Select Contributors
Establish the objectives
Create a work shop environment
Allocate research & information gathering tasks
Evaluate listed ideas against Objectives
List Strength, weakness, Opportunity & Threats
Carry your finding forward
3.Prepare Actions Plans
Things must be addressed immediately
Things that can be handle now
Things that should be research further
Things that should be planned for the future
SWOT Analysis Worksheet for RSMPvt. Ltd.
 Strengths
• Right products, quality and reliability.
• Superior product performance vs. competitors.
• Better product life and durability.
• Have customer lists.
• Direct delivery capability.
 Weaknesses
• Customer lists not tested.
• No direct marketing experience.
• Need more sales people.
• Limited budget.
• Delivery-staff need training.
Opportunities
• Could develop new products.
• Could extend to overseas.
• Could seek better supplier deals.
• Can surprise competitors.
Threats
• Legislation could impact.
• Environmental effects would favor larger
competitors.
• Market demand very seasonal.
• Retention of key staff critical.
How to make an effective SWOT
analysis
• Set objectives
• Generate alternative strategies
• Evaluate alternative strategies
• Monitor results
• Gain commitment among the stakeholders
during each step of this process.
Swot analysis

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Swot analysis

  • 2. content  Meaning of swot analysis.  Factor of swot analysis.  strength.  Weakness.  Opportunities  Threats  advantage  Disadvantage  What make a swot analysis work  Aim  outcome  Who need swot analysis  Application  How to conduct  Example  How to make an effective SWOT analysis
  • 3. SWOT Analysis  A SWOT analysis is a planning tool used to understand the Strengths, Weaknesses, Opportunities, and Threats involved in a project or in a business.
  • 6. Strength  Characteristics of the business or a team that give it an advantage over others in the industry.  Examples: Abundant financial resources, well-known brand name, economic of scale, lower coasts, superior management talent, better marketing skills, Good distribution skills, committed employees.
  • 7. Weakness  Characteristics that place the firm at a disadvantage relative to others.  Examples: Limited financial resources, weak spending on research & development, very narrow product line, limited distribution, higher costs, out-of-date products/ technology, weak market image, poor marketing skills, limited management skills, under-trained employees.
  • 8. Opportunities Chance to make grater profits in the environment- external attractive factors that represent the reason for an organization to exist & develop. Examples: Rapid market growth, rival firms are complacent, changing customer needs/tastes, new uses for product discovered, sales decline for a substitute product.
  • 9. Threats External elements in the environment that could cause trouble for the business- external factors, beyond an organization’s control Examples: entry of foreign competitors, introduction of new strategies, increased government regulation, economic downturn.
  • 10. ADVANTAGES OF SWOT ANALYSIS Simplicity Cost Effective Promotes Discussion Wide range of application
  • 11. Drawbacks of SWOT Analysis Only as Good as the Ideas Given Results generated were not accurate if not done in a group setting
  • 12. What makes a SWOT analysis work? • Trust • Ability and willingness to implement change. • Diversity • Time
  • 13. Aim of SWOT Analysis • Reveal your competitive advantages • Analyze your prospects for sales, profitability and product development • Prepare your company for problems • Allow for the development of contingency plans
  • 14. OUTCOMES Strength cause +ve outcome: It leads to Opportunity. Weakness cause –ve outcome: It leads to Threats. Opportunity Strength Threats Weakness
  • 15. Who needs SWOT Analysis
  • 16. Application of SWOT Analysis A SWOT analysis can be used for:  Workshop sessions  Brainstorm meetings  Problem solving  Planning  Product evaluation  Competitor evaluation  Personal Development Planning  Decision Making (with force field analysis)
  • 17. How to conduct SWOT Analysis
  • 18. 1. Analyze internal & external Environment Situation Analysis Internal Analysis Strength Weakness External Analysis Opportunity Threats
  • 19. 2.Perform SWOT Analysis & Document Select Contributors Establish the objectives Create a work shop environment Allocate research & information gathering tasks Evaluate listed ideas against Objectives List Strength, weakness, Opportunity & Threats Carry your finding forward
  • 20. 3.Prepare Actions Plans Things must be addressed immediately Things that can be handle now Things that should be research further Things that should be planned for the future
  • 21. SWOT Analysis Worksheet for RSMPvt. Ltd.  Strengths • Right products, quality and reliability. • Superior product performance vs. competitors. • Better product life and durability. • Have customer lists. • Direct delivery capability.  Weaknesses • Customer lists not tested. • No direct marketing experience. • Need more sales people. • Limited budget. • Delivery-staff need training.
  • 22. Opportunities • Could develop new products. • Could extend to overseas. • Could seek better supplier deals. • Can surprise competitors. Threats • Legislation could impact. • Environmental effects would favor larger competitors. • Market demand very seasonal. • Retention of key staff critical.
  • 23. How to make an effective SWOT analysis • Set objectives • Generate alternative strategies • Evaluate alternative strategies • Monitor results • Gain commitment among the stakeholders during each step of this process.