What is SWOT Analysis?

SWOT: Key to business strategies
SWOT stands for strengths, weaknesses, opportunities and threats and after building the picture of the company’s past aims and the achievements – SWOT analysis can start its operation in the framing of the business strategy.

1. Strengths
a. Are internal to the organization.
b. Relate to the resources, programs and the organization in the key areas.
c. R and D almost complete.
d. Basis for the strong management team.
e. Key first major customer acquired.
f. Initial product can evolve into range of the offerings.
g. Located near a major centre of the excellence.
h. Well – rounded and managed business.

2. Weaknesses
a. Are internal to the organization.
b. Over – dependent on the borrowings, insufficient cash resources.
c. Board of the directors is too narrow.
d. Lack of the awareness amongst prospective customers.
e. Also relate to the resources, programs and the organization in the key areas.
f. Need to relocate to the larger premises.
g. Absence of the strong sales/marketing expertise.
h. Over – dependence on few key staff.
i. Emerging new technologies may move market in the various new directions.

3. Opportunities
a. Are external to the organization.
b. Market segment is poised for the rapid growth.
c. Export markets offer a great potential.
d. The distribution channels seeking new products.
e. Scope to diversify into the related market segments.

4. Threats
a. Are mostly external to the organization.
b. Major Players may enter the targeted market segment.
c. New technology may make products obsolescent.
d. Economic slow – down could reduce demand.
e. Euro/Yen may move against $.
f. Market may become price sensitive.
g. Market segments growth could attract major competition.