Use this SWOT Analysis slide to analyze the strategic position of a company or business initiative. SWOT Analysis enables you to determine the positive and negative factors, inside and outside your organization, that affect the success of your initiative.
SWOT is an acronym for Strengths, Weaknesses, Opportunities and Threats. An overview of these four factors include:
Strengths. characteristics or traits and qualities of the business and/or project team that give it an advantage over others. These strengths can either be tangible or intangible. Some examples could include industry expertise, human competencies, process capabilities, financial resources, products and services, customer goodwill or brand loyalty.
Weaknesses. attributes that prevent the organization from achieving the objective. Examples of weakness could include depreciating machinery, insufficient research and development facilities, poor internal decision-making, pricing, debt, high employee turnover, complex decision making process or narrow product range.
Opportunities. external chances to improve performance (i.e. make greater profits) in the environment. Organizations can gain competitive advantages by making use of opportunities that arise from innovation, marketplace, competition, production efficiencies and technology.
Threats. external elements in the environment that could cause trouble for the business or project. Threats can not be controlled and when a threat presents itself, the stability and survival can be at stake. Some example of threats could include emerging market trends, government regulations, changing technology, economic conditions, price wars and eroding industry profits.
SWOT Analysis is a powerful tool if used correctly and can be instrumental in forming and selecting the strategy for your initiative. It is best used as a guide and not a definitive direction. Use caution when analyzing your SWOT since conclusions can be very subjective. As a rule of thumb, successful businesses build on their strengths, correct their weaknesses, leverage emerging opportunities, and protect against external threats.
Using the SWOT analysis can help in strategic planning by:
In markets where there is a great deal of uncertainty, extra care should be taken to account for volatile factors such as:
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