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SWOT Analysis

SWOT Analysis. History of SWOT Analysis. Developed at Stanford Funded by Fortune 500 companies Took 9 years to develop Involved 5000 interviews. SWOT Analysis. Analysing a company’s: STRENGTHS WEAKNESSES OPPORTUNITIES THREATS. SWOT Analysis is….

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SWOT Analysis

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  1. SWOT Analysis

  2. History of SWOT Analysis • Developed at Stanford • Funded by Fortune 500 companies • Took 9 years to develop • Involved 5000 interviews

  3. SWOT Analysis Analysing a company’s: • STRENGTHS • WEAKNESSES • OPPORTUNITIES • THREATS

  4. SWOT Analysis is… … A strategic planning tool that separates influences on a business’s future success into internal and external factors

  5. SWOT Analysis allows businesses to… • Define realistic goals • Improve capability • Overcome weaknesses with strengths • Identify threats than can be turned into opportunities

  6. Who Needs SWOT Analysis? : • A Department/Business Unit: • When the team has not met its targets; • Improve customer service; • A new business unit to pursue a new business; • A new team leader is appointed; etc

  7. Brainstorming – key ingredient for SWOT : • Brainstorming – will be useful if: • You are thinking outside the box • Availability of varied perspectives • Group discussion • Liberty to say your mind • Willingness to break away from traditional methods • Appetite for change

  8. Benefits of SWOT Analysis : • Solving problems • Implementing change • Developing strategies for achieving the organization's objectives and mission

  9. A SWOT Matrix… …separates and compares internal and external influencers: INTERNAL: strengths, weaknesses External: opportunities, threats

  10. A strength can be a competitive advantage like… • Superior product quality • Lowest price • Best expertise • Location

  11. A weakness can be a disadvantage such as… • A tired brand • Inferior location • High overheads • A lack of R&D

  12. An opportunity can be… • A regulatory or tax change • A high-profile event (marketing opportunity) • An untapped market • A gap left by a failed competitor

  13. A threat can be… • Unfavourable regulation changes • A new entrant into the market • Problems with the economy • Market shrinkage

  14. Strategies that can come from SWOT Analysis… S-O W-O S-T W-T

  15. TOWS Matrix

  16. Matching strengths to opportunities Otherwise known as: S-O or Maxi-Maxi strategy Using a strength to maximise an opportunity

  17. Matching weaknesses to opportunities Otherwise known as: W-O or Mini-Maxi strategy Improving capability to maximise an opportunity

  18. Matching strengths to threats Otherwise known as: S-T or Maxi-Mini strategy Minimising a threat with a strength

  19. Matching weaknesses to threats Otherwise known as: W-T or Mini-Mini strategy Minimising weaknesses and threats at same time (often last choice)

  20. Conclusion

  21. Conclusion

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