SWOT Analysis Overview

• SWOT Analysis: A strategic analysis tool used to identify and analyze the main internal and external factors that impact business success.

  • Internal Factors: Strengths and Weaknesses.

  • External Factors: Opportunities and Threats.

Components of SWOT Analysis

• Strengths: Positive internal attributes of the business.

• Weaknesses: Negative internal attributes that can impede success.

• Opportunities: Positive external conditions that can be leveraged for growth.

• Threats: Negative external conditions that could harm the business.

Identifying Strengths

• Factors to Consider:

  1. Manufacturing efficiency.

  2. Skilled workforce.

  3. Good market share.

  4. Strong financing.

  5. Good reputation.

Recognizing Weaknesses

• Factors to Consider:

  1. Outdated facilities.

  2. Inadequate research and development (R&D).

  3. Obsolete technologies.

  4. Weak management.

  5. Past planning failures.

Exploring Opportunities

• Factors to Consider:

  1. Possible new markets.

  2. Strengthening economy.

  3. Weak market rivals.

  4. Emerging technologies.

  5. Growth potential in existing markets.

Assessing Threats

• Factors to Consider:

  1. New competitors entering the market.

  2. Shortages of resources.

  3. Changing market tastes.

  4. New regulatory challenges.

  5. Availability of new substitute products.

SWOT Analysis and Market Position

• **Strategies Based on SWOT: **

  • Growth Strategies (S-O): Leverage strengths to capitalize on opportunities.

  • Defensive Strategies (S-T): Protect the business from threats using strengths.

  • Reorientation Strategies (W-O): Address weaknesses to take advantage of opportunities.

  • Defusing Strategies (W-T): Mitigate threats by addressing weaknesses.

Offensive/Growth Strategies

• Objective: Combine strengths with market opportunities to create effective short-term strategies.

Defensive/Survival Strategies

• Usage: Implemented when vulnerabilities are high; combines threats and weaknesses.

• Approach: Requires quick action with potentially negative short-term strategies.

Reorientation Strategies

• Goal: Focus on overcoming weaknesses to harness available market opportunities.

Defusing Strategies

• Purpose: Eliminate market threats by applying the business's strengths.

• Nature: Neutral and medium-to-short-term strategy.