swot analysis. analysing a company’s: swot analysis strengths weaknesses opportunities threats
TRANSCRIPT
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SWOT Analysis
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Analysing a company’s:
SWOT Analysis
• Strengths
• Weaknesses
• Opportunities
• Threats
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History of SWOT Analysis
• Developed at Stanford• Funded by Fortune 500
companies• Took 9 years to develop• Involved 5000 interviews
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SWOT Analysis is…
… A strategic planning tool that separates
influences on a business’s future success into
internal and external factors.
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• Define realistic goals
• Improve capability
• Overcome weaknesses with strengths
• Identify threats than can be turned into opportunities
SWOT Analysis allows businesses to…
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A SWOT Matrix…
…separates and compares internal and external influencers:
Internalstrengths, weaknesses
Externalopportunities, threats
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A strength
• Superior product quality
• Lowest price
• Best expertise
• Location
Can be a competitive advantage like…
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A weakness
• A tired brand
• Inferior location
• High overheads
• A lack of R&D
Can be a disadvantage such as…
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An opportunity can be…
• A regulatory or tax change
• A high-profile event (marketing opportunity)
• An untapped market
• A gap left by a failed competitor
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A threat can be…
• Unfavourable regulation changes
• A new entrant into the market
• Problems with the economy
• Market shrinkage
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Strategies that can come from SWOT Analysis…
S-O W-OS-T W-T
Strategies
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Matching strengths to opportunities
Otherwise known as: S-O or Maxi-Maxi strategy
Using a strength to
maximise an opportunity
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Matching weaknesses to opportunities
W-O or Mini-Maxi strategy
Improving capability to
maximise an opportunity
Otherwise known as:
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Matching strengths to threats
S-T or Maxi-Mini strategy
Minimising a threat with a
strength
Otherwise known as:
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Matching weaknesses to threats
W-T or Mini-Mini strategy
Minimising weaknesses and
threats at same time
(often last choice)
Otherwise known as:
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