SWOT Analysing by eljorrello

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									SWOT   analysis
Learning Objective
   the components
 of a SWOT Analysis.



            Identifying
              internal
 strengths (S) and weaknesses (W)


       and also examining
            external
 opportunities (O) and threats (T)
      S    Things the company does well.

Internal

      W    Things the company does not do well.



       O   Conditions in the external environment
           that favor strengths.
External
           Conditions in the external environment
       T   that do not relate to existing strengths
           or favor areas of current weakness.
                ©South-Western College Publishing
   Production Costs

   Marketing Skills

   Employee Capabilities

   Financial Resources

   Available Technology

   Company/Brand Image
Environmental Scanning & Monitoring- Techniques
Strategic and Creative Use of S.W.O.T Analysis :


Orienting to An Objective


If SWOT analysis does not start with defining a desired end state or
    objective, it runs the risk of being useless. A SWOT analysis may be
    incorporated into the strategical planning model.

An example of a strategic planning technique that incorporates an objective-
   driven SWOT analysis is SCAN analysis.
           Examples of SWOTs
Strengths and Weaknesses

       Resources: financial, intellectual, location

       Cost advantages from proprietary know-how

       Creativity / ability to develop new products

       Valuable intangible assets: intellectual capital

       Competitive capabilities

       Big campus selection
            Examples of SWOTs
Opportunities and Threats
       –   Takeovers
       –   Market Trends
       –   Economic condition
       –   Mergers
       –   Joint ventures
       –   Strategic alliances
       –   Expectations of stakeholders
       –   Technology
       –   Public expectations
       –   Competitors and competitive actions
       –   Poor Public Relations Development
       –   Criticism (Editorial)
       –   Global Markets
       –   Environmental conditions
                Uses of SWOT Analysis
• Corporate planning

• Set objectives – defining what the organisation is intending to do

• Environmental scanning
    – Internal appraisals of the organisations SWOT, this needs to include an
      assessment of the present situation as well as a portfolio of products/services
      and an analysis of the product/service life cycle

• Analysis of existing strategies, this should determine relevance from the
  results of an internal/external appraisal. This may include gap analysis
  (compare its actual performance with its potential performance which will
  look at environmental factors)

• Strategic Issues defined – key factors in the development of a corporate plan
  which needs to be addressed by the organisation
• Develop new/revised strategies – revised analysis of strategic issues may
  mean the objectives need to change

• Establish                        – the achievement of objectives and
  strategy implementation

• Preparation of operational, resource, projects plans for strategy
  implementation

• Monitoring results – mapping against plans, taking corrective action which
  may mean amending objectives/strategies.
                        Handling SWOTs

• Strengths

   – (maintain, build and leverage)


• Opportunities

   – (prioritise and optimise)


• Weaknesses

   – (remedy or exit)


• Threats

   – (counter)
For a company a strength could be:
•   marketing expertise
•   location of your business
•   innovative product
•   company image
•   any other aspect that adds value to your product or service


For a company a weakness could be:
•   lack of marketing expertise
•   undifferentiated products and service (i.e. in relation to your competitors)
•   location of your business
•   damaged reputation
For a company an opportunity could be:
•   a developing market such as the Internet.
•   mergers, joint ventures or strategic alliances
•   a new international market
•   a market vacated by an ineffective competitor
•   any external factor that may create demand or the possibility for
    increased profitability


For a company a threat could be:
•   a new competitor in your market
•   price wars with competitors
•   a competitor has a new, innovative product or service
•   competitors have superior access to channels of distribution
Suggestions for conducting SWOT Analysis:
• Be realistic;
       no need to inflate strengths or be in denial about shortcomings.

• Distinguish between where your technology is today, and where it could
  be in the future.

• Be specific. Avoid grey areas.

• Always analyze in the context of your competitive environment.

• Keep your SWOT short and simple.
Expanding Your SWOT Analysis

• Delve deeper into the details of the technology.

• Include more detailed competitor information in the analysis.

• Take a closer look at the business environment.

• Expand the reach of a SWOT analysis through surveys.
Reformulate every +/- 2 years

    Use your update SWOT
      as a basis perspective
     to analyse & regenerate
     your Business Model

								
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