- Internal strengths
- Internal weaknesses
- Opportunities in the external environment
- Threats in the external environment
SWOT can help management in a business discover:
- What the business does better than the competition
- What competitors do better than the business
- Whether the business is making the most of the opportunities available
- How a business should respond to changes in its external environment
The result of the analysis is a matrix of positive and negative factors for management to address:
Positive factors
|
Negative factors
| |
Internal factors
|
Strengths
|
Weaknesses
|
External factors
|
Opportunities
|
Threats
|
Strategy should be devised around strengths and opportunities
A key challenge for any business is to convert weaknesses into strengths. For example:
| Weakness | Possible Response |
| Outdated technology | Acquire competitor with leading technology |
| Skills gap | Invest in training & more effective recruitment |
| Overdependence on a single product | Diversify the product portfolio by entering new markets |
| Poor quality | Invest in quality assurance |
| High fixed costs | Examine potential for outsourcing or offshoring |
No comments:
Post a Comment