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SWOT Analysis Matrix
SWOT Analysis Matrix
The above is a schema of how SWOT works. You start at the top level and go down to details. When this is filled with content, it gets the shape of a matrix, such as the example below:
Unique product Location of your business Patents, know-how, trade secrets Worker's unique skill set Corporate culture, company image Quality of your product Access to financing Operational efficiency
Location of your business Lack of quality and customer service Poor marketing and sales Access to resources Undifferentiated products or services
Opportunities and threats are external value creating (or destroying) factors a company cannot control but emerge from either the competitive dynamics of the industry or market or from demographic, economic, political, technical, social, legal, or cultural factors. An opportunity in the SWOT model could be for example:
y y y y y
A new emerging or developing market (niche product, place - new country, less competition) Merger, joint venture, or strategic alliance Market trends New technologies Social changes (for example demographics)
New competition in the market, possibly with new products or services Price wars Economic conditions Political changes Competitor oligopoly or monopoly Taxation Availability of resources
Factors related to each aspect of the SWOT model depend very much of the nature of your business. SWOT for a manufacturing company will be different from a SWOT for an internet start-up.
Simple: Keep your SWOT matrix short and simple. Avoid complexity and over analysis. If you want to include many points to each quadrant of the SWOT matrix, it is a good idea to weight them.
1. Purpose
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Completing a SWOT matrix is a key part of developing a successful marketing plan. A SWOT matrix enables business owners to see exactly where their companies are currently succeeding, where their competitors might have an edge, and how they can use current market conditions to their advantage.
To perform a SWOT analysis on a business, create a box divided into four equal parts. Label the upper-left quadrant "Strengths"; the upper-right quadrant "Weaknesses"; the lower-left quadrant "Opportunities"; and the lower-right quadrant "Threats." Fill in the quadrants with objective information on the business.
Strengths
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What does your company currently do well? What advantages does it have over the competition?
Weaknesses
Where does the company have room to improve? What is the competition doing better?
Opportunities
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Are there promising markets that your business is not currently pursuing? Are you making full use of your current resources?
Threats
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What current market conditions are damaging, or could potentially damage, your business? Are there certain businesses that are particularly difficult to compete against?