SWOT L2

• SWOT Analysis

  An effective strategy that helps business sectors to understand the strengths, limitations, opportunities, and risks that a company or project faces
• SWOT stands for Strengths, Weaknesses, Opportunities, and Threats
• SWOT Analysis can be performed on a commodity, place, industry, or person
• SWOT Analysis

  1. Defining the goal of the business ventures or projects

  2. Determining the internal and external factors that are beneficial and unfavourable to achieving that goal
• SWOT is attributed to Albert Humphrey (2005), who organized a convention using the data from Fortune 500 companies at the Stanford Research Institute in the 1960s and 1970s
• Strengths

  Characteristics of a company or initiative that give an edge over competitors
• Weaknesses

  Qualities that put a company or project at a disadvantage in comparison to others
• Opportunities

  Aspects that the company or project might use to its benefits
• Threats

  Environmental factors that may wreak havoc on the company or project
• Internal influences examine strengths and weaknesses depending on the effect on the organizational goals
• External influences include macroeconomic issues, technological change, regulation, socio-cultural shifts, and changes in the market place or competitive position
• SWOT analysis is used for pre-crisis preparation and crisis prevention
• SWOT analysis is used in a feasibility study to make an effective recommendation
• Tips for using the SWOT Template


  • Strengths: Is the business in demand in your community? Is the product new in your community? Is it accessible to all? Will your community patronize it?
  • Weaknesses: What could you improve? What should you avoid? What factors would cause the loss of your sales?
  • Opportunities: Where are the good opportunities facing you? What are the interesting trends you are aware of? What are the external factors that can increase profits?
  • Threats: What obstacles do you face? What is your competitor doing that you should be worried about? Could any of your weaknesses threaten your business?