SWOT Analysis:

Strengths, Weaknesses,
Opportunities, and
Threats
 Prof.V.S.Shinde
Assistant Professor CSE Dept
What is a SWOT analysis and why
should you use one?
A SWOT analysis guides you to identify the
positives and negatives inside your organization
(Strength & Weakness) and outside of it, in the
external environment (Opportunity & Threat).
Developing a full awareness of your situation
can help with both strategic planning and
decision -making.
 What Is a SWOT Analysis?
•SWOT stands for Strengths, Weaknesses,
Opportunities, and Threats, and so a SWOT Analysis
is a technique for assessing these four aspects of
your business.
•You can use SWOT Analysis to make the most of

what you've got, to your organization's best

advantage. And you can reduce the chances of
failure, by understanding what you're lacking, and
eliminating hazards that would otherwise catch you
unawares.
•Better still, you can start to craft a strategy that

distinguishes you from your competitors, and so

compete successfully in your market.
When do you use SWOT?
You might use it to:
• Explore possibilities to problems.
• Make decisions for your initiative.
• Determine where change is possible.
• Adjust and refine plans mid-course.
Aim of SWOT Analysis?

HARMFUL
HELPFUL
To help decision
makers share and
compare ideas.
To bring a clearer
common purpose
and understanding

S W of factors for
success.
To organize the
important factors
linked to success
and failure in the
business world.
To analyze issues
that have led to
failure in the past.

O T To provide linearity
to the decision
making process
allowing complex
ideas to be
presented
systematically.
Whatare the elements of
a SWOT analysis?
A SWOT analysis focuses on Strengths,
Weaknesses, Opportunities, and Threats.
Ask participants to answer these simple
questions: what are the strengths and
weaknesses of your group, community, or
effort, and what are the opportunities and
threats facing it?
If a looser structure helps you brainstorm, you can
group positives and negatives to think broadly about
your organization and its external environment.
Strengths
 Strengths are things that your organization
does particularly well, or in a way that
distinguishes you from your competitors.
Think about the advantages your
organization has over other organizations.
These might be the motivation of your staff,
access to certain materials, or a strong set of
manufacturing processes.
Weakness
 Now it's time to consider your organization's weaknesses. Be
honest! A SWOT Analysis will only be valuable if you gather all
the information you need. So, it's best to be realistic now, and
face any unpleasant truths as soon as possible.
 Weaknesses, like strengths, are inherent features of your

organization, so focus on your people, resources, systems,

and procedures. Think about what you could improve, and
the sorts of practices you should avoid.
 Examples - Limited financial resources, Weak spending on

R & D, Very narrow product line, Limited distribution,

Higher costs, Out-of-date products / technology, Weak
market image, Poor marketing skills, Limited management
skills, Under-trained employees.
Opportunities
 Opportunities are openings or chances for something positive to
happen, but you'll need to claim them for yourself!
 They usually arise from situations outside your organization, and
require an eye to what might happen in the future. They might arise
as developments in the market you serve, or in the technology you
use. Being able to spot and exploit opportunities can make a huge
difference to your organization's ability to compete and take the lead
in your market.
 Think about good opportunities you can spot immediately. These
don't need to be game-changers: even small advantages can increase
your organization's competitiveness. What interesting market trends
are you aware of, large or small, which could have an impact?
 You should also watch out for changes in government policy related
to your field. And changes in social patterns, population profiles, and
lifestyles can all throw up interesting opportunities.
Threats
 Threats include anything that can negatively affect your business
from the outside, such as supply chain problems, shifts in market
requirements, or a shortage of recruits. It's vital to anticipate
threats and to take action against them before you become a victim
of them and your growth stalls.
 Think about the obstacles you face in getting your product to
market and selling. You may notice that quality standards or
specifications for your products are changing, and that you'll need
to change those products if you're to stay in the lead. Evolving
technology is an ever-present threat, as well as an opportunity!
 Always consider what your competitors are doing, and whether you
should be changing your organization's emphasis to meet the
challenge. But remember that what they're doing might not be the
right thing for you to do, and avoid copying them without knowing
how it will improve your position.
Threats
 Examples - Entry of foreign competitors,
Introduction of new substitute products,
Product life cycle in decline, Changing
customer needs/tastes, Rival firms adopt
new strategies, Increased government
regulation, Economic downturn.
Who needs SWOT Analysis?

• When the team has not met its

targets
2 • Customer service can be better
• Launching a new business unit to
pursue a new business
• New team leader is appointed

Business Unit

Management Company
• When supervisor has issues with
work output • When revenue, cost & expense
• Assigned to a new job targets are not being achieved
1 • New financial year – fresh targets 3 • Market share is declining
• Job holder seeks to improve • Industry conditions are unfavorable
performance on the job • Launching a new business venture
How to conduct SWOT Analysis?

1. Analyze Internal & 2. Perform SWOT Analysis 3. Prepare Action Plans

External Environment & Document
How to conduct SWOT Analysis?

1. Analyse Internal & External Environment

How to conduct SWOT Analysis?
 Benefits & Pitfalls of SWOT Analysis

Benefits of SWOT Analysis

Benefits of
SWOT
Analysis

Knowing the Competion Forecasting

Reviews a company's Provides a variety of
competitors & benchmarks information critical to
against them to configure forecasted variables. Threats,
strategies that will put the Decision Making Tool for e.g., can impact a
company in a competitive business's forecast. By
Provides well-rounded
advantage. understanding the company's
information that prompt
advantages & disadvantages,
well-informed forecasts will be more
decisions. accurate.
Benefits & Pitfalls of SWOT Analysis

Benefits of SWOT Analysis

Besides the broad benefits, here are few more benefits of conducting
SWOT Analysis:

Helps in setting of objectives for strategic planning

Provides a framework for identifying & analyzing strengths,

weaknesses, opportunities & threats

Provides an impetus to analyze a situation & develop suitable

strategies and tactics

Basis for assessing core capabilities & competencies

Evidence for, and cultural key to, change

Provides a stimulus to participation in a group experience

Benefits & Pitfalls of SWOT Analysis

Pitfalls of SWOT Analysis

Can be very subjective. Two people rarely come up with the

same final version of a SWOT. Use it as a guide and not as a
prescription.
May cause organizations to view circumstances as very simple
due to which certain key strategic contact may be overlooked.

Categorizing aspects as strengths, weaknesses, opportunities

& threats might be very subjective as there is great degree of
uncertainty in market.
To be effective, SWOT needs to be conducted regularly. The
pace of change makes it difficult to anticipate developments.

The data used in the analysis may be based on assumptions

that subsequently prove to be unfounded [good and bad].

It lacks detailed structure, so key elements may get missed.

Brainstorming & Prioritization in SWOT Analysis

Brainstorming Prioritization

Output from Brainstorming exercise is Prioritized

Begin brainstorming by asking the At the end of the Brainstorming exercise:

following questions: • Reduce the list of strengths & weaknesses
• What opportunities exist in our to no
external environment? more than five distinctive competencies
• What threats to the institution and
exist in debilitating weaknesses
our external environment? • Strengths that are distinctive
• What are the strengths of our competencies
institution? • Weaknesses that are debilitating
• What are the weaknesses of our • Reduce threats and opportunities to the
institution? five most
critically important of each.
Mr. Sherpinsky's Honors Marketing
Class. 2015 All rights reserved.
 Tips & Exercise

TIPS

Do’s Don’ts
 Be analytical and specific. х Try to disguise weaknesses.
 Record all thoughts and ideas. х Merely list errors and mistakes.
 Be selective in the final evaluation. х Lose sight of external influences and
 Choose the right people for the trends.
exercise. х Allow the SWOT to become a blame-
 Choose a suitable SWOT leader or laying
facilitator. exercise.
 Think out of the box х Ignore the outcomes at later stages of
 Be open to change the
planning process.
Thank You