SWOT

ANALYSIS
SIR. ENZO
 Learning objectives
 What is SWOT analysis?
 Aim of SWOT analysis.
 Who need SWOT analysis?
 How to conduct SWOT analysis?
 Pitfalls of SWOT analysis.
 Tips for SWOT analysis.
 What is SWOT analysis

 A technique that enables a group or

individual to move from everyday
problems and traditional strategies to a
fresh prospective.

 SWOT analysis looks at your strengths

and weaknesses, and the opportunities
and threats your business faces.
 The SWOT Analysis framework is a
very important and useful tool to use in
marketing Management and other
business applications

 As a basic tool its mastery is a

fundamental requirement for the
marketer, entrepreneur or business
person.

 A clear understanding of SWOT is

required for business majors.
What is SWOT Analysis?

 Technique is credited
Strengths to Albert
Humphrey who led
a research project at
Stanford University
in the 1960s and
 Planning
1970s.
tool
used to

Oppurtunity
SWOT Weakness
understand
Strengths,
Analysis Weaknesses,
Opportunities, &
Threats involved
in a project
 Used /
as framework
business.
for organizing and
using data and
Threats
information gained
from situation
analysis of internal
and external
SWOT is an acronym for:
What is SWOT Analysis?

STRENGTHS

Characteristics of the business or a

team that give it an advantage over
others in the industry.
Positive tangible and intangible
attributes, internal to an
organization.
Beneficial aspects of the
organization or the capabilities of
an organization, process
capabilities, financial resources,
products and services, customer
goodwill and brand loyalty.
Examples - Abundant financial
resources, Well-known brand name,
Economies of scale, Lower costs [raw
materials or processes], Superior
management talent, Better marketing
skills, Good distribution skills,
Committed employees.
What is SWOT Analysis?

WEAKNESSES

Characteristics that place the firm at

a disadvantage relative to others.

Detract the organization from its

ability to attain the core goal and
influence its growth.
Weaknesses are the factors which
do not meet the standards we
feel they should meet. However,
weaknesses are controllable.
They must be minimized and
eliminated.
Examples - Limited financial
resources, Weak spending on R & D,
Very narrow product line, Limited
distribution, Higher costs, Out-of-
date products / technology, Weak
market image, Poor marketing skills,
Limited management skills, Under-
trained employees.
What is SWOT Analysis?

OPPORTUNITIES

Chances to make greater profits in

the environment - External attractive
factors that represent the reason for
an organization to exist & develop.

Arise when an organization can

take benefit of conditions in its
environment to plan and execute
strategies that enable it to
become more profitable.
Organization should be careful and
recognize the opportunities and
grasp them whenever they arise..

Examples - Rapid market growth,

Rival firms are complacent, Changing
customer needs/tastes, New uses for
product discovered, Economic boom,
Government deregulation, Sales
decline for a substitute product .
What is SWOT Analysis?

THREATS

External elements in the

environment that could cause trouble
for the business - External factors,
beyond an organization’s control.
!
Arise when conditions in external
environment jeopardize the
reliability and profitability of the
organization’s business.
Compound the vulnerability when
they relate to the weaknesses.

!
Threats are uncontrollable. When a
threat comes, the stability and
survival can be at stake.
Examples - Entry of foreign
competitors, Introduction of new
substitute products, Product life cycle
in decline, Changing customer
needs/tastes, Rival firms adopt new
strategies, Increased government
regulation, Economic downturn.
Aim of Swot analysis
 HARMFUL
HELPFUL To help decision
makers share and
compare ideas.
To bring a clearer

W
common purpose
S and
understanding of
factors for
success .
To organize the
important factors
linked to success
and failure in the

T
business world.

O To provide
linearity to the
decision making
process allowing
complex ideas to
be presented
systematically.
Who needs SWOT Analysis?

• When the team has not met its

targets
2 • Customer service can be better
• Launching a new business unit to
pursue a new business
• New team leader is appointed

Business Unit

Job Holder Company

• When supervisor has issues with
work output • When revenue, cost & expense
targets are not being achieved
1 • Assigned to a new job
• New financial year – fresh targets 3 • Market share is declining
• Job holder seeks to improve • Industry conditions are unfavorable
performance on the job • Launching a new business venture
Who needs SWOT Analysis?
SWOT Analysis is
also required for /
during... Changing Jobs

Product Launch

Decision Making

Personal Development Planning

Competitor Evaluation

Product Evaluation
Strategic Planning
Brainstorming Meetings
Workshop Sessions
How to conduct SWOT Analysis?

1. Analyse Internal & 2. Perform SWOT Analysis 3. Prepare Action Plans

External Environment & Document
How to conduct SWOT Analysis?

1. Analyse Internal & External Environment

.
How to conduct SWOT Analysis?

1. Analyse Internal & 2. Perform SWOT Analysis 3. Prepare Action Plans

External Environment & Document
 How to conduct SWOT
Analysis?

7
2. Perform SWOT Analysis & Document
Carry your findings forward - Make

6
sure that the SWOT analysis is used in
subsequent planning. Revisit your
findings at suitable time intervals.
Evaluate listed ideas
against Objectives - With
5
4
the lists compiled, sort and
group facts and ideas in List Strengths,
relation to the objectives. Weaknesses,

3
Create a workshop Opportunities, &
environment - threats
Encourage an atmosphere

2
conducive to the free flow
Allocate research & information
of information.
gathering tasks - Background
Select contributors - preparation can be carried out in

1
Expert opinion may be two stages – Exploratory and
required for SWOT Detailed. Information on Strengths
& Weaknesses should focus on the
Establish the objectives - Purpose
internal of .
factors
conducting a SWOT may be wide /
narrow, general / specific.
How to conduct SWOT Analysis?

1. Analyse Internal & 2. Perform SWOT Analysis 3. Prepare Action Plans

External Environment & Document
How to conduct SWOT Analysis?

3. Prepare Action Plan

Once the SWOT analysis has been completed, mark each point
with:

Things that MUST be addressed immediately

Things that can be handled now

Things that should be researched further

Things that should be planned for the future

Pitfalls of SWOT Analysis

Can be very subjective. Two people rarely come up with the same final
version of a SWOT. Use it as a guide and not as a prescription.

May cause organizations to view circumstances as very simple due to

which certain key strategic contact may be overlooked.

Categorizing aspects as strengths, weaknesses, opportunities & threats

might be very subjective as there is great degree of uncertainty in market.

To be effective, SWOT needs to be conducted regularly. The pace of

change makes it difficult to anticipate developments.

The data used in the analysis may be based on assumptions that

subsequently prove to be unfounded [good and bad].

It lacks detailed structure, so key elements may get missed.

.
 Tips & Exercise

TIPS

Do’s Don’ts
 Be analytical and specific. х Try to disguise weaknesses.
 Record all thoughts and ideas. х Merely list errors and mistakes.
 Be selective in the final х Lose sight of external influences
evaluation. and trends.
 Choose the right people for the х Allow the SWOT to become a
exercise. blame-laying
 Choose a suitable SWOT leader exercise.
or facilitator. х Ignore the outcomes at later
 Think out of the box stages of the planning process.
 Be open to change