The SWOT analysis used to outline goals for yourself or your business, for business planning, strategic planning, competitor evaluation, marketing, business and product development and research reports. SWOT analysis uses SWOT matrix (2 into 2 matrix) to assess both internal and external aspects, especially in business and marketing planning.
SWOT is an acronym for Strengths, Weaknesses, Opportunities, and Threats.
Strengths allow capitalizing on Opportunities in achieving objective. On the other hand, Weaknesses expose to Threats that hinder from achievement of objective.
2x2 matrix grid is consisted of a two-column with two rows. Strengths and Weaknesses are internal factors and listed in the top two boxes. Opportunities and Threats are external factors.
Opportunities include all factors that make up the reason for business’s existence and set the path for the future.
Threats include all factors beyond control that could place business at risk by causing declining revenues or profits.
Some Strengths, Weaknesses, Opportunities, and Threats for a company is given as :
Strengths of a company | Weaknesses of a company |
· Advantages of proposition? · Capabilities? · Competitive advantages? · USP's (unique selling points)? · Resources, Assets, People? · Experience, knowledge, data? · Financial reserves, likely returns? · Marketing - reach, distribution, awareness? · Innovative aspects? · Location and geographical? · Price, value, quality? · Accreditations, qualifications, certifications? · Processes, systems, IT, communications? · Cultural, attitudinal, behavioural? · Management cover, succession | · Disadvantages of proposition? · Gaps in capabilities? · Lack of competitive strength? · Reputation, presence and reach? · Financials? · Own known vulnerabilities? · Timescales, deadlines and pressures? · Cashflow, start-up cash-drain? · Continuity, supply chain robustness? · Effects on core activities, distraction? · Reliability of data, plan predictability? · Morale, commitment, leadership? · Accreditations, etc? · Processes and systems, etc? · Management cover, succession? |
Opportunities for a company | Threats for a company |
· Competitors' vulnerabilities? · Industry or lifestyle trends? · Technology development and innovation? · Global influences? · New markets, vertical, horizontal? · Niche target markets? · Geographical, export, import? · Market need for new USP's? · Market response to tactics, e.g., surprise? · Major contracts, tenders? · Business and product development? · Information and research? · Partnerships, agencies, distribution? · Market volume demand trends? · Seasonal, weather, fashion influences? | · Political effects? · Legislative effects? · Environmental effects? · IT developments? · Competitor intentions - various? · Market demand? · New technologies, services, ideas? · Vital contracts and partners? · Obstacles faced? · Insurmountable weaknesses? · Employment market? · Financial and credit pressures? · Economy - home, abroad? · Seasonality, weather effects? |
Very useful and informative stuff about TOWS Matrix. It is a opposite of SWOT Analysis.