SWOT
Analysis is the management tool, which is
used for strategic analysis of current and future
position of the company, as well as assistance in
decision making. SWOT is an acronym and it stands for
Strength, Weakness, Opportunity, and Threats. SWOT
Analysis tool
is used in a framework as it is shown below:
In the SWOT Analysis Strength and Weakness are
reflecting the situation within the company.
Opportunity and Threats within the SWOT Analysis are depicting the
surrounding of the company. The SWOT Analysis is mostly
used for group work and brainstorming during
workshops. During the process of analysis it is
advisable to use questions:
SWOT
Analysis - Strength:
Erica
Olsen: SWOT Analysis
What
are our capabilities?
What is our competitive advantage?
What are our resources?
What is our experience?
What are our Financials?
What are our processes?
SWOT
Analysis - Weakness:
What are our gaps in capabilities?
What is our competitive weakness?
Do we have problems with finance, cash flow?
What are our internal obstacles?
SWOT
Analysis - Opportunity:
What are market opportunities?
What are competitor’s weaknesses?
What are favorite industry and technology trends?
What are consumer preference opportunities?
SWOT
Analysis - Threats:
Are
there any negative legislative effects?
Are there any environmental negative influences?
Are there any macro economical trends that have
negative impact?
Is there any shift of consumer preference from our
segment?
The SWOT
Analysis is very usable in the business, during
Business Planning Process, the design of Projects
or new Products, evaluating the business idea,
assessing the business process, analysis of the
market, competition, etc. SWOT Analysis as a tool for
scanning the organization is usually used in conjunction
with the Porter’s Five Forces
analysis, witch is used for analysis of external
factors.
