SWOT Analysis of Strategic Management

     What makes SWOT particularly powerful is that, with a little thought, it can help you uncover opportunities that you are well-placed to exploit. And by understanding the weaknesses of your business, you can manage and eliminate threats that would otherwise catch you unawares.

    Swot can be done by one person or a group of members that are directly responsible for the situation assessment in the company.

Basic swot analysis is done fairly easily and comprises of  only few steps: Step1. Listing the firm’s key strengths and weaknesses Step2. Identifying opportunities and threats

          Strengths and weaknesses are the factors of the firm’s internal environment. When looking for strengths, ask what do you do better or have more valuable than your competitors have? In case of the weaknesses, ask what could you improve and at least catch up with your competitors?

        

             Strengths :

           A firm's strengths are its resources and capabilities that can be used as a basis for developing a competitive advantage. Examples of such strengths include:

• patents
• strong brand names
• productive capacity
• technological capabilities
• good reputation among customers
• strong financial structure of the organization
• cost advantages from proprietary know-how
• exclusive access to high grade natural resources
• favorable access to distribution Networks

       Weaknesses :

           The absence of certain strengths may be viewed as a weakness. For example, each of the following may be considered weaknesses:

• lack of patent protection
• a weak brand name
• poor reputation among customers
• high cost structure
• untrusting service or product
• lack of access to the best natural resources
• lack of access to key distribution channels

          Opportunities and threats are the external uncontrollable factors that usually appear or arise due to the changes in the macro environment, industry or competitors’ actions. Opportunities represent the external situations that bring a competitive advantage if seized upon. Threats may damage your company so you would better avoid or defend against them.

      

     Opportunities :

           The external environmental analysis may reveal certain new opportunities for profit and growth. Some examples of such opportunities include:

• an unfulfilled customer need
• arrival of new technologies
• changing consumer tastes
• low taxes
• loosening of regulations
• new chain of distribution
• removal of international trade barriers

        Threats :

           Changes in the external environmental also may present threats to the firm. Some examples of such threats include:

• shifts in consumer tastes away from the firm's products
• emergence of substitute products
• new regulations
• increase of taxation
• changing of goverment policies
• increased trade barriers