This document provides information and examples for conducting a SWOT analysis to evaluate internal strengths and weaknesses and external opportunities and threats for a business. Strengths include expertise, technology skills, brands, distribution channels, and customer loyalty. Weaknesses involve lack of expertise, poor quality, and limited resources. Opportunities consist of market expansion, policy changes, and new technologies. Threats comprise competition, taxes, negative publicity, and political instability. The examples demonstrate applying SWOT to analyze insurance and spa resort businesses considering factors like reputation, costs, staff, facilities, activities, and government influence.

2. Strengths
Internal factors, the qualities that you have at the
moment that place you ahead of the competition.
1. What do you do better than anyone else?
2. What is it that makes you competitive in the market?
Is it:
• Your brands?
• Your staff?
• Customer support?
• Flexibility?
• Payment options?

3. Strengths - Examples
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High level of expertise (staff).
Advanced technological skills.
Leading/strong brands.
Good distribution channels.
Customer loyalty.
Reliable products.
High-quality customer support and availability
(24/7).

4. Weaknesses
Internal factors that you have to work on, your
existing shortcomings.
1. What might hinder your success? Is it:
- Lack of professional staff/expertise?
- Poor quality of goods/service?
- Lack of technological skills?
- Reluctance to try online options?
- Lack of resources/investment?

5. Weaknesses - Examples
- Limited expertise.
- Difficulties with financial or material resources.
- Limited access to skills or technology (due to
financial crisis or political changes).
- Poor/unprofessional customer service.
- Unreliable product/service (not available 24/7).
- Weak brands or variety of different brands.
- Inaccessible or hard-to-access points-of sale.

6. Opportunities
External factors that may help your business to
soar.
Useful opportunities can come from things such as:
• Changes in technology and market growth.
• Changes in government policy related to your
field (more foreign investment).
• Changes in social interactions, population
profiles, or lifestyle.
• Favourable tax policy.

7. Opportunities - Examples
- Market development – expanding to foreign markets.
- Decrease of taxes and fees.
- Using social networks and other digital media for
promotion.
- Investing in R&D department.
- Political changes –more foreign cash flow.
- Lifestyle changes (wealthier population, moving to the
suburbs).
- Presence of foreign investors.
- The EU competitions offering investments for selfsustainable projects.

8. Threats
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External factors that might pose problems for your
business:
What is your competition doing that you should be worried
about?
Are there any changes in supply and demand that might
threaten your business?
Is increased use of digital advertising and selling
threatening your position?
Does the government plan to impose tax-increasing policy?
Are there any political changes that might cause closing of
the markets (non- existent or limited exchange of goods)?
World economic crisis.

9. Threats - Examples
- Competition (a lot of it!).
- Increased taxes.
- Negative press coverage (due to potentially negative
business moves).
- High level of corruption and bribery.
- Political changes (conservative government, war conflict,
increased government control).
- Popularity of new distribution channels (the Internet and
social networks).
- Change in population age (older population is not exactly a
target group for online games or sports gear) .

10. Practice – Task 1
• GRAWE INSURANCE has specialized in life
insurance. However, they are trying to place
more focus on Home/Property Insurance.
Their agent is telling you they are an excellent
opportunity for your home. Can you SWOTanalyse their offer?

11. GRAWE INSURANCE SWOT ANALYSIS
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Strengths:
1. Reputable insurance office, considered a very reliable partner.
2. Excellent life insurance conditions.
Weaknesses:
1. Very pricey insurance policies, have to be paid in advance on the annual basis.
2. Their local insurance agents are unreliable (negligence).
3. Their home insurance policy does not cover every damage in the house.
4. Local cases claim they pay damages depending on individual cases, not the contract.
5. Small print says they do not compensate for the furniture damaged during the flood.
Opportunities:
1. You may get a health insurance policy for a negligible amount as the reward for loyalty.
2. They may hire more experienced people in the future as more people realize the
importance of home insurance.
Threats:
1. The HQ may decide to close the local office due to poor performance of local agents.

12. Final decision
• Opt for a domestic trustworthy home
insurance house and invest in life insurance
with GRAWE.

13. Practice – Task 2
• Your wellness & spa company is interested in
Vranjska Banja resort as it has a lot of
patients. However, first you have to consider
all options. SWOT-analyse the potential
purchase or leasing of the resort.

14. VRANJSKA BANJA SWOT ANALYSIS
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Strengths:
1. The hottest thermal waters in Europe.
2. Pleasant nature.
3. Peaceful and quiet place.
Weaknesses:
1. The resort building has not been redecorated or modernised for a long time.
2. Lack of entertainment and attractive leisure activities.
3. Lack of staff.
Opportunities:
1. Foreign or government investment could make a huge difference.
2. Hiring more professional staff for a good benefit package.
3. Modernising the rooms and designing a set of entertaining activities.
Threats:
1. There are a lot of spa centers in Serbia that have a more varied and attractive offer.
2. Political changes – the local government changed and they haven’t presented their agenda
yet.

15. Final decision
• Your company is still interested but due to the
change in the local government you will focus
on establishing cooperation with them first
and then discussing the terms.

16. Thank you!
• The Power Point presentation and the
examples were used for the lessons on SWOT
analysis in Secondary School of Economics and
Trade in Vranje, Serbia (Grade 4).