SWOTSWOT
14-1
SWOT ANALYSISSWOT ANALYSIS
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A tool for auditing ( help to focus on key issues ) an
organization and its environments
A strategic planning tool that separates influences
on a business’s future success into internal and
external factors.
Strengths
Opportunities
Weakness
Threats
Internal Factors
External Factors
SWOT AnalysisSWOT Analysis
SWOT AnalysisSWOT Analysis
S – StrengthsW – Weaknesses
O – Opportunities-T – Threats
SWOT Analysis allows businesses to…SWOT Analysis allows businesses to…
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- Define realistic goals
- Improve capability
- Overcome weaknesses with
strengths
- Identify threats than can be
turned into opportunities
Brainstorming QuestionsBrainstorming Questions
What opportunities exist in our external environment?
What threats to the institution exist in our external
environment?
What are the strengths of our institution?
What are the weaknesses of our institution?
Internal factors
Strengths and Weaknesses
Internal factors
Strengths and Weaknesses
Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall 14-7
SWOT: Internal FactorsSWOT: Internal Factors
Strengths
– Positive tangible and intangible
attributes, internal to an organization.
– They are within the organization’s
control.
StrengthsStrengths
What do you do particularly well?
What do you do that is unique in the
“marketplace?”
What do your customers/clients/patrons ask for
you to do over and over again?
What do you have the right tools/resources to
accomplish?
A strength can be competitive advantages :A strength can be competitive advantages :
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• Your specialist marketing
expertise.
• A new, innovative product or
service.
• Location of your business.
• Quality processes and
procedures.
• Any other aspect of your
business that adds value to your
product or service.
WeaknessesWeaknesses
Weaknesses
–Factors that are within an
organization’s control that
detract from its ability to
attain the core goal.
–Which areas might the
organization improve?
A weakness can be a disadvantage such as…A weakness can be a disadvantage such as…
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Lack of marketing
expertise.
Undifferentiated products
or services (i.e. in relation to
your competitors).
Inferior location of your
business.
Poor quality goods or
services.
Damaged reputation.
External factors
Opportunity and Threat
External factors
Opportunity and Threat
Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall 14-13
SWOT : External FactorsSWOT : External Factors
Opportunities
– External attractive factors that
represent the reason for an
organization to exist and develop.
– What opportunities exist in the
environment, which will propel the
organization?
– Identify them by their “time frames” .
OpportunitiesOpportunities
Are there new situations coming down the road
that you can take advantage of (new programs
being offered, new faculty joining the
department, new tools available to you)?
Are there gaps in the “market” that you can fill?
Are there partnerships that might be fruitful?
An Opportunity can be :An Opportunity can be :
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A developing market such as the
Internet.
Moving into new market segments
that offer improved profits.
A new international market.
A market vacated by an
ineffective competitor
SWOT: External FactorsSWOT: External Factors
Threats
– External factors, beyond an organization’s control,
which could place the organization mission or
operation at risk.
– The organization may benefit by having contingency
plans to address them if they should occur.
– Classify them by their “seriousness” and “probability
of occurrence”.
ThreatsThreats
Who is your competition and what do they offer that you can’t do as well
or at all?
Are there “environmental” changes or situations that could cause
problems for you and your programs?
What other roadblocks are being thrown in your path?
A threat can be :A threat can be :
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• A new competitor in your home market.
• Price wars with competitors.
• A competitor has a new, innovative
product or service.
• Competitors have superior access to
channels of distribution.
• Taxation is introduced on your product
or service (Unfavourable regulation
changes)
• Market shrinkage
Threat : Hotel industryThreat : Hotel industry
Guest houses replace the hotels.
Political turbulence in the area reduces tourist traffic and thus
the business of thehotels
Changing trends in the west demand similar changes in India
The economic conditions of a country have a direct impact on
the earnings in hotel industry.
Lack of training man power in the hotel industry.
Fluctuations in international tourist arrivals.
Increasing competition 14-20
Simple Rules SWOT Analysis Simple Rules SWOT Analysis
Be realistic about the strengths and weaknesses of your organization or group
Distinguish between where your organization is today, and where it could be in the future
Be specific: Avoid gray areas.
Simple Rules SWOT Analysis Simple Rules SWOT Analysis
Always analyze in relation to your core
values, mission, mandate, goals, vision.
Keep your SWOT short and simple.
Avoid complexity and over analysis
Empower SWOT with a logical
conceptual framework.
SWOT (OTSW) MATRIXSWOT (OTSW) MATRIX
Opportunities-external
1. 2. 3.4.5.
Threats-external
1. 2. 3.4.5.
Strengths-Internal 1. 2. 3.4.5.
Weaknesses-Internal1. 2. 3.4.5.