In SWOT, strengths and weaknesses are internal factors. For example:A strength could be: your specialist marketing expertise.
a new, innovative product or service
location of your business
quality processes and procedures
any other aspect of your business that adds value to your product or service.
A weakness could be:
lack of marketing expertise
undifferentiated products or services (i.e. in relation to your competitors) location of your business
poor quality goods or services
In SWOT, opportunities and threats are external factors. For example: An opportunity could be: a developing market such as the Internet.
mergers, joint ventures or strategic alliances
moving into new market segments that offer improved profits
a new international market
a market vacated by an ineffective competitor
A threat could be:
a new competitor in your home market
price wars with competitors
a competitor has a new, innovative product or service
competitors have superior access to channels of distribution taxation is introduced on your product or service
A word of caution, SWOT analysis can be very subjective. Do not rely on SWOT too much. Two people rarely come-up with the same final version of SWOT. TOWS analysis is extremely similar. It simply looks at the negative factors first in order to turn them into positive factors. So use SWOT as guide and not a prescription.Simple rules for successful SWOT analysis be realistic about the strengths and weaknesses of your organization when conducting SWOT analysis. SWOT analysis should distinguish between where your organization is today, and where it could be in the future SWOT should always be specific. Avoid grey areas.
always apply SWOT in relation to your competition i.e. better than or worse than your competition keep your SWOT short and simple. Avoid complexity and over analysis SWOT is subjective.
Once key issues have been identified with your SWOT analysis, they feed into...
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