Strenght Weakness Opportunities and Treats analysis

SWOT Analysis, is a strategic planning tool used to evaluate the Strengths, Weaknesses, Opportunities, and Threats involved in a project or in a business venture. It involves specifying the objective of the business venture or project and identifying the internal and external factors that are favorable and unfavorable to achieving that objective. the awot anylysis provides information that is helpful in matching the firm's resources and capabilities to the competitive enironment in which it operates. As such, it is instrumental in strategy formulation and selection. The following diagram shows how a SWOT analysis fits an enironmental scan. STRENGHTS: A firm's strenghts are its resource and capabilities that can be used as a basis of developing a competitie advantage. example of such strenghts include: patients, strong brand names, good reputation among customers, cost adantages from propriety know -how, exclusive access to hig grade natural resources, favorable to distribution networks. WEAKNESS: the absence of certain strenghts may be viewed as a weakness .For example lack of patient protection, a weak brandname, poor reputation among customers, high cost structure. I n some cases weakness may be the flip side of a strenght. for example a firm has a large amount of manufacturing capacity . while this capacity may be considered a strenght that competitors do not share, it alos may be a considered a weakness if the large investment in manufacturing capacity prevent the firm from reacting quickly to changes in the strategic environment. OPPORTUNITIES The external environmental analysis may reveal certain new opportunities for profit and growth. fro example an unfulfilled customer need, arrival of new technologies, loosening of regulations, removal of international trade barriers, TREATS Changes in the external environmental also may present treats to the firm. For example shifts in customers tastes away from the firm's products, emergence of substitute products, new regulations, increased trade barriers. SWOT Matrix: The SWOT Matrix helps visualize the analysis. Also, when executing this analysis it is important to understand how these element work together. When an organization matched internal strengths to external opportunities, it creates core competencies in meeting the needs of its customers. In addition, an organization should act to convert internal weaknesses into strengths and external threats into opportunities. http://www.quickmba.com/strategy/swot/ postes bu 20700735 entry number 3