SWOT Analysis (C) Krystle Attard 2013. A situation analysis where internal strengths and weaknesses...
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Entrepreneurship SWOT Analysis (C) Krystle Attard 2013
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Transcript of SWOT Analysis (C) Krystle Attard 2013. A situation analysis where internal strengths and weaknesses...
(C) Krystle Attard 2013
EntrepreneurshipSWOT Analysis
(C) Krystle Attard 2013
A situation analysis where internal strengths and weaknesses of an organization are examined in line with potential opportunities and threats to chart a strategy
Definition
Strengths
Weaknesses
Opportunities
Threats
(C) Krystle Attard 2013
A firm’s strengths are its resources and capabilities that can be used as a basis for developing a competitive advantage
Examples: patents, brand names, reputation, cost
advantages, access to resources, distribution networks
Strengths
(C) Krystle Attard 2013
Absence of strengths or threats to profitability Deals with product features from production to
sales and marketing stages
Examples: patent protection, established competition, price
vs. quality balance, limited access to resources
Weaknesses
(C) Krystle Attard 2013
The external environmental analysis may reveal certain new opportunities for profit and growth
Examples: An unfulfilled customer need New technologies Loosening of regulations Less international trade barriers
Opportunities
(C) Krystle Attard 2013
Changes in the external environmental also may present threats to the firm
Examples: Shifting consumer tastes Substitute products New regulations Increased trade barriers Increased overheads
Threats
(C) Krystle Attard 2013
A firm should not necessarily pursue the more money-spinning opportunities
There may be a better chance at developing a competitive advantage by identifying a balance between the firm’s strengths and upcoming opportunities
SWOT Matrix
(C) Krystle Attard 2013
Strengths Weaknesses
Opportunities S-O W-O
Threats S-T W-T
The SWOT Matrix
(C) Krystle Attard 2013
S-O Strategies: pursue business opportunities which fit in with
the company’s established strengths
W-O Strategies: overcome weaknesses to pursue opportunities
SWOT Matrix: Opportunities
(C) Krystle Attard 2013
S-T Strategies: identify ways how to use the firm’s strengths to
reduce its vulnerability to external threats
W-T Strategies: establish a defensive plan to prevent the firm’s
weaknesses from making it highly susceptible to external threats
SWOT Matrix: Threats
