THE CONCEPT OF SWOT ANALYSIS .

SWOT analysis is a technique used for environmental scanning, which involves assessing an
organization's internal strengths and weaknesses, as well as external opportunities and threats. It
provides valuable insights into the organization's current state and the external factors that can impact
its success.

Also Environmental scanning is a concept from business management by which businesses

gather information from the environment, to better achieve a sustainable competitive advantage.To
sustain competitive advantage the company must also respond to the information gathered from
environmental scanning by altering its strategies andplanswhen the need arises.In sum up SWOT dealing
with evaluating strengths,weakness,opportunity as well as Threats in the organization.[Ref:Abbas, M.,
& Rana, N. (2016). SWOT Analysis and Organizational Transformation of Higher Education
Institutes in Khyber Pakhtunkhwa. Pakistan Journal of Commerce and Social Sciences, 10(3), 858-
871.]

Let's use TANESCO (Tanzania Electric Supply Company Limited) as an example to illustrate how SWOT
analysis is applied for environmental scanning:

1. Strengths:

I. Extensive infrastructure: TANESCO possesses a robust infrastructure of power generation plants,

transmission lines, and distribution networks, allowing them to provide electricity to a large portion of
Tanzania. This infrastructure has been built over time and has established the company as a key player
in the energy sector (Reference: TANESCO Annual Report).

II;Strong government support: As a government-owned entity, TANESCO benefits from strong

government support and policies that prioritize the expansion and development of the energy sector.
This support ensures stability and regulatory backing for TANESCO's operations (Reference: Ministry of
Energy).

III;Diverse energy sources: TANESCO utilizes a mix of energy sources, including hydroelectric, natural
gas, and thermal power plants. This diversification enables TANESCO to mitigate risks associated with
dependence on a single energy source and adapt to varying market conditions (Reference: TANESCO
Corporate Strategy).

1
2. Weaknesses:

I; High distribution losses: TANESCO faces challenges related to distribution losses, primarily due to
technical and non-technical losses such as theft and inefficiencies in the distribution process. These
losses impact the company's revenue and overall financial performance (Reference: Tanzania Electric
Supply Company Limited).

II;Aging infrastructure: Some of TANESCO's infrastructure, such as power plants and transmission lines,
may be aging and require upgrades or maintenance. This can affect reliability, efficiency, and increase
operational costs (Ref: TANESCO Development Plan).

III;Limited electrification in rural areas: Though TANESCO has made significant strides in expanding
electricity access, there are still remote rural areas in Tanzania that lack access to reliable electricity.
Limited electrification hinders the company's ability to serve a wider customer base and impacts social
and economic development (Reference: Tanzania Rural Energy Agency).

3. Opportunities:

TANESCO can leverage various opportunities to further improve its operations:

I; Renewable energy development: Tanzania has vast potential for renewable energy, including solar and
wind. TANESCO can invest in renewable energy projects to diversify its energy sources and contribute to
sustainable development goals (Ref.Tanzania Renewable Energy Association Report).

II; Rural electrification focus: The Tanzanian government has prioritized rural electrification efforts.
TANESCO can participate in these initiatives to expand its customer base and extend electricity access to
underserved communities (Ref.Rural Energy Agency report ).

4. Threats:

TANESCO faces threats that it must address to maintain its competitive position:

I; Increasing competition: With the privatization of the energy sector, TANESCO faces competition from
independent power producers and potential foreign entrants, impacting its market share (Ref.The
Guardian, 2020 news paper ).

II;Changing regulatory environment: Changes in government regulations, policies, and tariff structures
can affect TANESCO's operations and profitability (Ref.The East African, 2021).

2
III;Climate change impacts: Climatert)(Ref.Tanesco report)

Therefore,SWOT analysis techinique for environment scanning has the following advantages , Simplified
assessment,Strategic planning, Insight into competitive advantage,Risk mitigation,Opportunities for
innovation,Resource optimization,Organizational alignment, Improved market understanding,
Continuous improvement.[Ahmed, B. M., Mostafa, M., & Abou-Shouk, M. (2018). SWOT Analysis ]