SWOT analysis Flashcards
What does SWOT analysis stand for?
Strengths; Internal factors within a business that can help it achieve its objectives
Weaknesses; Internal factors that could prevent a business from achieving its objectives
Opportunities; External business circumstances that can help it achieve its objectives
Threats; External problems that may prevent a business from achieving its objectives
Explain the ‘strengths’ part of SWOT analysis.
Advantages of the business
What unique or low-cost resources does the business have?
What do people in your market see as your strengths?
What factors mean that you “get the sale”?
What is your organisation’s Unique Selling Proposition (USP)?
Explain the ‘weaknesses’ part of SWOT analysis.
What could you improve?
What should you avoid?
What are people in your market likely to see as weaknesses?
What factors lose you sales?
Explain the ‘opportunities’ part of SWOT analysis.
What good opportunities can you spot?
What interesting trends are you aware of?
Useful opportunities can come from such things as:
- Changes in technology and markets
- Changes in social patterns, population, lifestyle changes etc.
Explain the ‘threats’ part of SWOT analysis.
What obstacles do you face?
What are your competitors doing?
Are quality standards or specifications for your job, products or services changing?
Is changing technology threatening your position?
Do you have bad debt or cash-flow problems?
Could any of your weaknesses seriously threaten your business?
Explain SWOT and strategic decisions.
SWOT can be used as a tool to formulate a strategy of growth and attack to use the business’s strengths to maximise opportunities in the market
SWOT can be used as a tool to compete and defend, using the strengths to minimise the market threats
SWOT can be used as a tool to improve and attack new markets or produce new products
SWOT can be used as a tool to identify when to change and retreat
