SWOT Analysis

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A SWOT Analysis is a strategic planning tool used to evaluate the Strengths, Weaknesses, Opportunities, and Threats involved in a business project. Strengths and Weaknesses are internal to an organization and are attributes that measure your internal capability. Opportunities and Threats originate from outside the organization and refer to how the external environment affects your business. Strengths: Define areas you excel in, such as the company's core competency and resource analysis . What does your department/university do well? . How strong is your department/university in the market? . Does your department/university have a dear strategic direction? . Does your departments/universities culture produce a positive work environment? Weaknesses: Evaluate your liabilities . What could be improved at your department/university? . What does your department/university do poorly? . What should be avoided? . Is your department/university unable to finance needed technology?
Developed for: Executive and Development, Saint Marys University Developed by: P.W. Associates, Inc. Page 1

. Do you have poor debt or cash flow? Opportunities: Analyze your customers and market attractiveness . What favorable circumstances are you facing? . What are the interesting trends? Is your department/university positioned to take on these trends? . Is your department/university entering new markets? . Is your department/university advanced in technology? . Is your department/university moving into new market segments that offer improved profits? . Do you have a development market such as the Internet? Threats: Check out what your competitors are doing and access other potential challenges . What obstacles do you face? . What is your competition doing? . Are the required specifications for your products or services changing? . Is changing technology threatening your position? . What policies are local and federal lawmakers backing? Do they affect your industry? 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 (threats, opportunities, weaknesses and strengths) analysis is extremely similar. TOWS analysis simply looks at the negative factors first in order to turn them into positive factors. You can use the SWOT as a guide and not a prescription. Simple Rules for Successful SWOT Analysis . Be realistic about the strengths and weaknesses of your department/university when conducting a SWOT analysis. . SWOT analysis should distinguish where your department/university is today and where it could be in the future. . 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.

Developed for: Executive and Development, Saint Marys University Developed by: P.W. Associates, Inc. Page 2

Once key issues have been identified with your SWOT analysis, they feed into marketing objectives. Some of the problems that you may encounter with SWOT are as a result of one of its key benefits i.e. its flexibility. Since SWOT analysis can be used in a variety of scenarios, it has to be flexible. However, this can lead to a number of anomalies. Problems with basic SWOT analysis can be addressed using a more critical power SWOT. SWOT Analysis Examples Example 1 Wal-Mart SWOT Analysis Strengths Wal-Mart is a powerful retail brand. It has a reputation for value for money, convenience and a wide range of products all in one store. Weaknesses Wal-Mart is the Worlds largest grocery retailer and control of its empire, despite its advantages, could leave it weak in some areas due to the huge span of control. Opportunities To take over, merge with, or form strategic alliances with other global retailers, focusing on specific markets such as Europe or the Greater China Region. Threats Being number one means that you are the largest target of competition, locally and globally. Example 2 Starbucks SWOT Analysis Strengths Starbucks Corporation is a very profitable organization, earning in excess of $600 million in 2004. Weaknesses References for using a SWOT Analysis: http://www.marketingteacher.com/Lessons/lesson_swot.htm http://www.businessballs.com/swotanalysisfreetemplate.htm http://erc.msh.org/quality/ittools/itswot.cfm http://www.businessballs.com/swotanalysisfreetemplate.htm

Developed for: Executive and Development, Saint Marys University Developed by: P.W. Associates, Inc. Page 3