SWOT ANALYSIS

SWOT Analysis
A technique that enables a group of individual
to move from everyday problems and
traditional strategies to a fresh perspective
Allows you to combine the internal and
external view of the company and to generate
new strategies.
Allows you to take advantage of strength and
opportunities and minimize weaknesses and
eliminate some threats

Using SWOT Analysis to Evaluate

the Logic of Your Strategy
INTERNAL
FACTORS

Strengths (S)

Weaknesses (W)

EXTERNAL
FACTORS

Opportunities (O)

SO Strategic Issues
Do we have the assets to
exploit this opportunity?

ST Strategic Issues

Threats (T)

Do we have the
assets to overcome
this threat?

WO Strategic Issues
Can we overcome our
weaknesses to exploit
this opportunity?

WT Strategic Issues
Can we overcome
our weaknesses to
impede this threat?

Strength and Weakness

Strength Defined: A strength is a core
capability of your business where your
business have an advantage over your
competitor(s), which your customers value i.e.
you passed the better than your competitors
test
Weakness Defined: A weakness is a core
capability of your business where your
competitor(s) have an advantage over your
business, which your customers value i.e. you
failed the better than your competitors test

Sample Questions
Strength

Weakness

Which strengths are

unique to the team?
What are we good at
doing?
What are things that
have gone well?

What should be done

better in the future?
What knowledge do
we lack?
What skills do we
lack?
What systems do we
need to change?

The Lists: SW (Internal)

Strength e.g.

Weaknesses e.g.

Patents
Strong brand
Cost advantage
Reputation
Distribution
Technology
International experience
Capacity
Financial resources
..

Easy to imitate
No brand recognition
Poor reputation
No spare capacity
Low R&D
Limited distribution
Only local experience
Weak partners
Experience
..

Opportunity and Threat

Opportunity Defined: An opportunity is an
environmental condition in your macro or
industry environments that can improve
your organizations competitive position
relative to that of your competitors.
Threat Defined: A threat is a forecast
environmental condition that is out of your
control and has the potential to harm your
businesses profitability.

Sample Questions
Opportunities

Threats

What are the key success

enablers?
Which additional services
can we offer?
What new markets should
we investigate?
What might change in the
future?

Barriers to progress?
What are the possible
impact of what
competitors are doing?
Which regulator issues
might cause us concern?
What might change in the
future?

The Lists: OT (External)

Opportunities e.g.

Threats e.g.

Unfilled customer need

Free trade
Regulation
Economy
Market trends
New alliances
New segment

Shifts in customer taste

New substitute
Limits in trade
New competitor
New technology
Economy
Market trends

SWOT Example

Example: Winnebago Industries

producer of RVs

Opportunities
1 Demand for smaller RV
2 Development of internal market
3 Demand for low cost modular
housing

Threats
1 Gasoline shortage and higher prices
of gasoline
2 Slacking demand for RV
3 Trade up create secondary market
4 Increased competition
5 Impending safety regulation

Strengths

Weaknesses

1 Identifiable name with good name

2 Good service and warranty
3 Established dealer network
4 Extensive R&D capabilities
5 Automated economics plan
6 Manufacturing of most parts for
the RV

1 Vulnerability because of its one

product focus
2 Concentration on higher-priced units
3 Heavy investment in tool-making
4 One plant location
5 No preparation for transition from
family to corporate management

1 Emphasis smaller, more efficient

RV(O1, S1, S2, S3, S4, S5, S6)
2 Expand into foreign markets (O1,
S1, S4)
3 Diversify into modular housing
(O3, S1, S4, S6)
1 Diversify into farm equipment,
railroad cars (T1, T2, S1, S3, S4, S5)
2 Consider diesel engines for motor
homes (T1, S4)
3 Make RVs safer in anticipation of
safety regulation (T5, T4,S6)

1 Develop and produce smaller RVs

(O1, O2, W1,W2 )
2 Build smaller plants in different parts
of the country and aboard (O1, O2, W4)

1 Sell the company (T1, T2, T4, W1,

W3, W4, W5)

Example of SWOT
SWOT
ANALYSIS OF A
FAST FASHION
COMPANY

Strength

Weaknesses

-strength of brands and well

known (especially in the young
segment)
-targeted growth strategy
-financial strength
-quality and creativity of teams
-distribution
-updated clothes

-forward and backward

integration
-waste of time in the supply
chain

-increasing market share

-meet change in customers
demand (fulfil new customers
needs)
-strengthen its position
-better visibility
-open new stores
-further diversification projects

-lots of technological and

logistic competences required
-difficulties in identifying up-todate youths preferences

-defend its position in the

market
-defend trademarks and
property rights

-high level of competition

-expend too many resources in
the supply chains
improvements

Opportunities
-consumer trends
-current increase in wealth
-emerging market
-improvement of way of selling
the large product line
(distribution channels)
-expansion to other markets,
entering new sectors

Threats
-change in consumer taste
-economic recession
-presence of competitors

Using SWOT
Be realistic about the strengths and weaknesses
of your organization
Analysis should distinguish between where your
organization is today, and where it could be in
the future
Be specific. Avoid grey areas.
Always analyze in relation to your competition
i.e. better than or worse than your competition
Keep your SWOT short and simple. Avoid
complexity and over analysis
SWOT is subjective.

Limitations of SWOT
Be careful with only a single view use
multiple interviews / workshop (also use
different stakeholders if possible).
Often oversimplify the situation by forcing
issues into lists where they do not belong
The same issue can be an opportunity or a
threat depending on how you view it.
SWOT create awareness of the issues