What is SWOT?





SWOT ANALYSIS is a powerful tool to plan a strategic process consisting of internal factors and external forces.


S. No. Heading(s)
1.Why to use it?
2.When to use it?
3.How to use it?

1. Why to use it?

Maximizes the potential of the strength and opportunities while minimizing the impact of weakness and threats.

2. When to use it?

While developing a strategic plan or planning a solution to a problem, after we have analyzed the external environment.

3. How to use it?

Using to analysis…

3.1 Internal analysis.

3.2 External analysis.

Internal Analysis

Examine the capabilities of your/own organization. This can be done by analyzing your organization’s strengths and weaknesses.

External Analysis

Look at the main points in the environmental analysis, and identify those points that pose opportunities for your/own organization, and those that pose threats or obstacles to perform.


4.1 Strengths

  • Internal positive factors.
  • What do you do well?
  • What unique resources you can draw upon?
  • What do others see as your strength?
  • What advantages does your organization have?
  • What you do better than any one else.
  • What advantages do you have that others don’t have, like your special skills, special connections, education etc.
  • Patents.
  • Strong brand name.
  • Good reputation among customers.
  • Cost advantage.
  • Better technology.

4.2 Weakness

  • Internal negative aspects that are under your control and tha you may plan to improve.
  • What areas yo have to improve?
  • Where do you have poorer resources than others?
  • What are the points you should avoid?
  • Lack of patent protection.
  • Weak brand name.
  • Poor reputation among customers.
  • High cost structure.

4.3 Opportunities

  • Positive external conditions that you do not control but of which you can plan to take advantage.
  • An unfulfilled customer need.
  • Arrival of new technology.
  • Loosing of regulations.
  • Removal of trade barriers.

4.4 Threats

  • Negative external conditions that you do not control but the effect of which you may be able to lessen.
  • What obstacles do you face?
  • If changing technology affecting your position.
  • What trends could harm you?
  • What are your competitors doing?
  • What are the threats coming out of your weakness?
  • Do you have cash flow or bad debts problem?
  • Shift in the co sumer taste away from the firm’s product.
  • New regulations.

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