Ø SWOT analysis is a technique for assessing the performance, competition, risk, and potential of a business, as well as part of a business.
Ø SWOT represented in: strengths, weaknesses, opportunities, and threats.
Ø SWOT analysis is a framework used to evaluate a company's competitive position and to develop strategic planning.
Ø SWOT include internal factors and external factors.
Ø SWOT analysis is a strategic planning technique that provides assessment tools to Identifying strengths, weaknesses, opportunities, and threats lead to fact-based analysis, fresh perspectives and new ideas.
Ø A Visual Overview:
Strength
|
Weakness
|
Opportunities
|
Threats
|
SWOT analysis applied like that square by that four points on opposite side to monitor to opposite points.
Ø Components of SWOT analysis:
v Strength
Strengths are internal, positive attributes of your company. Mainly apply your competitive advantages and your strength points that help you in your business.
· What business processes are successful?
· What assets do you have in your team, such as knowledge, education, network, skills, and reputation?
· What physical assets do you have, such as customers, equipment, technology, cash, and patents?
· What competitive advantages do you have over your competition?
· Why the customers deal with you in compare with other customers?
· What you have in your company others not ?
v Weaknesses
Weaknesses are internal negative factors that detract from your strengths. These are things that you might need to improve on to be competitive.
· Are there things that your business needs to be competitive?
· What business processes need improvement?
· Are there tangible assets that your company needs, such as money or equipment?
· Are there gaps on your team?
· What points you need to work on it to make it as a strength?
· Why customers deal with customer and you do not have like in some times payment terms you give customers 60 days competitors give 90 days that is a weakness point as it is an internal rules you need to change.
v Opportunities
Opportunities are external factors in your business environment that are likely to contribute to your success.
· Is your market growing and are there trends that will encourage people to buy more of what you are selling?
· Are there upcoming events that your company may be able to take advantage of to grow the business?
· Are there upcoming changes to regulations that might impact your company positively?
· A new market, new products all that are opportunities.
· A new an agreement terms will be a new opportunity to increase customer data base.
v Threats
Threats are external factors that you have no control over. You may want to consider putting in place contingency plans for dealing them if they occur.
· New competitors who may enter your market?
· future developments in technology change how you do business?
· Ex. Governmental roles that affect your business.
· Any things happen affect your business without any pervious parameters like sudden revolution like Egypt in 2011.
· Is consumer behavior changing in a way that could negatively impact your business?
· Are there market trends that could become a threat?
v Advantages of SWOT Analysis
Ø A SWOT analysis is a great way to guide business-strategy meetings. It's powerful to have everyone to discuss the company's core strengths and weaknesses and then move from there to define the opportunities and threats.
Ø A company can use a SWOT for overall business strategy sessions or for a specific segment such as marketing, production or sales. This way, you can see how the overall strategy developed from the SWOT analysis will filter down to the segments below before committing to it. You can also work in reverse with a segment-specific SWOT analysis that feeds into an overall SWOT analysis.
v DISADVANTAGES AND LIMITATIONS OF SWOT ANALYSIS
Ø SWOT Analysis has a general perspective as an approach and present general solutions.
Ø SWOT Analysis was developed in the periods when the environmental conditions were still, so it is not a good technique now a days as the continuous changes.
Ø There are various studies showing that SWOT Analysis is poorly formulated. It requires
experience and training for a systematic construction and use. According to Mintzberg (1990) one gets the image of executives sitting around a table discussing the strengths, weaknesses, and distinctive competences of an organization, much as do students in a case study class.
Ø SWOT Analysis has high cost, but fewer benefits.
Ø SWOT Analysis begins with current strengths, weaknesses, opportunities and threats. However, to generate suitable strategies for a certain period, SWOT needs to revise its inventory to arrive at one that would reflect accurately the anticipated organization strengths, weaknesses, opportunities and threats for that period.
v What to do next
Strength
|
Weakness
|
Opportunities
|
Threats
|
Ø With your SWOT analysis complete, you’re ready to convert it into real strategy. You need to work on your weaknesses to change it to strengths and on your threats to change it to opportunities, how?
The first step is to look at your strengths and figure out how you can use those strengths to take advantage of your opportunities. Then, look at how your strengths can combat the threats that are in the market. Use this analysis to produce a list of actions that you can take.
With your action list in hand, look at your company calendar and start placing goals on it. What do you want to accomplish in each calendar quarter moving forward?
You’ll also want to do this by analyzing how external opportunities might help you combat your own, internal weaknesses. Can you also minimize those weaknesses so you can avoid the threats that you identified?
ليست هناك تعليقات:
إرسال تعليق