SWOT Analysis

A tool for situational analysis

Environmental factors internal to the organization are classified as Strengths (S) and Weakness (W).

External factors are referred to

Opportunities (O) and Threats (T)

A scan of the internal and the external environment is an important part of

strategic planning process.

An analysis of the strategic environment is referred to as

SWOT/SCOT

Analysis

RESOURCES

CAPABILITIES

COMPETITIVE ENVIRONMENT

ENVIRONMENTAL SCAN

INTERNAL ANALYSIS EXTERNAL ANALYSIS

STRENGTHS WEAKNESSES

OPPORTUNITIES THREATS

STRENGTHS

They are resources and capabilities that can be used as a basis to develop a competitive advantage.

Eg : An access to proprietary know-how Patents

WEAKNESS

Absence of certain strengths or the flip side of the strength

Eg : A poor reputation High Cost structure

OPPORTUNITIES

The external environment may reveal certain opportunities for growth and development.

Eg : Loosening of regulations. Removal of international trade

barriers

THREATS

Changes in external environment may present certain threats

Eg. Shift in consumer taste Emergence of substitute product New regulations Increased trade barries

SWOT - AnalysisSTRENGTHSSTRENGTHS WEAKNESSWEAKNESS

OPPORTUNITIESOPPORTUNITIES THREATSTHREATS

SWOT to TOWS Matrix

Strengths-Strengths-MaximizeMaximize

Weakness-Weakness-MinimizeMinimize

Strengths-Strengths-MaximizeMaximize

Opportunities-Opportunities-MaximizeMaximize

Strengths-Strengths-MaximizeMaximize

Threats-Threats-MinimizeMinimize

Weakness-Weakness-MinimizeMinimize

Opportunities-Opportunities-MaximizeMaximize

Weakness-Weakness-MinimizeMinimize

Threats-Threats-MinimizeMinimize

Opportunities-Opportunities-MaximizeMaximize

Threats-Threats-MinimizeMinimize

S-W Strategies

Identify ways that firm can use its strengths to reduce the impact of its weaknesses.

S-T Strategies

Identify ways that firm can use its strengths to reduce its vulnerability to external threats

S-O Strategies :

To pursue opportunities that are a good fit for the company’s strength.

W-O Strategies

Overcome weakness to pursue opportunities

W-T Strategies

Establish a defense plan to prevent the firm’s weaknesses from making it highly susceptible to external strengths

O-T Strategies :

To pursue opportunities that can overcome threats to the company’s.

Decision

• Micro level, Macro level.

• Structural, Process

• Immediate, Short term, Long term

• Individual, Group, Organizational

Impact

Impact

Impact

Impact

Impact

Impact