3.1.3 - swot analysis

strengths

internal factors that can help a business achieve their objectives

weaknesses

internal factors that can hinder a business from achieving its objectives

opportunities

external business circumstances that can help a business ahcieve its objectives

threats

external problems that can prevent a business from achieving its objectives

strength examples

• advantages

• unique/low cost resources

• what customers think business' strengths are

• what factors mean you can sell the product

• what is the usp

weakness examples

• what could the business improve

• what ideas should the business avoid

• what are people in the market likely to see as weaknesses

• what factors could lose the business sales

opportunity examples

• what opportunities can the business spot

• what trends are the business aware of

• changes in technology/markets

• changes in social patterns

threat examples

• what obstacles might the business face

• competitor actions

• changing quality standards/specifications

• changing technology

• bad debt/cash flow problems

• could weaknesses seriously threaten the business

uses of a SWOT analysis:

• can direct business to next steps

• identifies strategic gaps

• quick + cheap

• encourages strategic thinking

• highlights hidden risks

• can show how the business needs to improve

• can aid decision making

limitations of a SWOT analysis

• may not present opportunity cost

• oversimplifies factors

• needs to be used w/ PESTLE for deep analysis

• subject to bias

• doesn't measure impact

• time sensitive

• limited guidance on action