Swot_Analysis

Define SWOT analysis with appropriate examples using external Resources. SWOT is a tool used by firms for internal scanning of its internal and external environment as a part of its strategic planning. It is an acronym of four words: Strength, Weakness, Opportunities and Threat which describes factors affecting the organization. Strength and weakness describes internal factors within the organization while opportunities and threats stand for factors in the external environment that affect the performance of that organization. These factors could be classified as positive: Strength and opportunists that can help the firm achieving its objectives and negative factors: weakness and threat which may hinder the firm achieving these goals. This framework provides the firm with valuable information for matching its resources and capabilities to the competitive environment where it works. Examples for SWOT elements organized on SWOT grid matrix are shown below: | Positive | Negative | Internal factors | 1. Strength: * What the unique products the company has. * Strong Quality brand name. * Unique access to natural recourses * Unique access to marketing channels * What the company has better than competitors. * History of brilliant reputation * Low cost products and firm structure | 2. Weakness * Poor reputation * Lack of quality procedures * High cost products and structure * Lack access to market channels * Skills gap | External factors | 2. Opportunities * Exempt from taxes as new regulations. * Increased market share as result of competitors vacant. * New market channel. * New international trade agreement. * Developing of new technologies. | 3. Threats * Changes in costumer taste * New competitor * Increased trade barriers | References: 1. QuickMPA(unknown) SWOT Analysis, http://www.quickmba.com/strategy/swot/ [accessed 11 December 2011] 2. Rapidbi(2007) SWOT Analysis Made Simple – History, Definition, Tools, Templates & Worksheets ,http://rapidbi.com/created/swotanalysis/ [accessed 11 December 2011] 3. Swinton, Lyndsay. (2005)"How To Do A SWOT Analysis: Strategic Planning Made Easy."http://www.mftrou.com/how-to-do-a-SWOT-analysis.html,[accessed 11 December 2011]