The strengths and weaknesses of a SWOT analysis focus on the current market position of a business in relation to its:
• Customers – is the business meeting the needs of its target markets
• Competitors- is the business offering a better way of meeting customer needs compared with its competitors
• Internal resources- is the business making effective use of its internal resources to meet customer needs and deal with competition
The opportunities and threats of a SWOT analysis focus on the future market position of a business.
• Use the strengths and limit the weaknesses to help plan for future development, marketing strategies and activities.
• Opportunities and threats should grow out of an objective consideration of the real strengths and weaknesses of the business.
• Specific information must be collated before the process begins and personnel need to adopt a truly objective position if the process is to be successful and worthwhile.
The main purpose of a SWOT analysis:
• Identify market opportunities
• To avoid complacency about market position – a self evaluating organization
• As a safety check before embarking on major new project
• As a response to change – change of director might initiate a SWOT analysis to gauge the strength of the team.
• There is no set procedure for carrying out a SWOT analysis but care must be taken to identify weaknesses if the process is to serve its purpose. A weakness may purely be lack of information, or lack of suitably qualified staff.
SWOT analysis of Marks and Spencer
|Strengths |Weaknesses | |Sales of clothes have stabilised, and food sales have increased |Resignation of three key members of staff: George Davies, finance| |Total group sales up 3.3% with food sales up 2.7% |director; Andrea...