SWOT analysis:

It is a form of strategic analysis that

identifies and analyses the main

internal strengths and weaknesses
and external opportunities and
threats
 Strengths Weaknesses

Opportunities Threats
Strengths (Internal)
 Experienced management

 Product patents,
 Loyal workforce

 Good product range

 A new, innovative product or service
 Location of business

 Quality products and processes

 Any other aspect of business that adds value to product or
service
Weaknesses (Internal)
Poorly trained workforce

Limited production capacity

Ageing equipment

Lack of marketing expertise

Undifferentiated products or services

Location of business

Poor-quality goods or services

Damaged reputation
Opportunities (External)
 New technologies

 Export markets expanding faster than domestic markets

 Lower rates of interest

 Increasing consumer demand

 Mergers, joint ventures or strategic alliances

 Moving into new market segments that offer improved

profits

 A market vacated by an ineffective competitor

Threats (External)
 Changes in the law regarding the sale of the firm’s products

 Changes in government economic policy.

 A new competitor

 Globalisation driving down prices,

 Price wars with competitors

 A competitor has a new, innovative product or service

 Competitors have superior access to channels of

distribution