What Consist In Swot
Posted on March 23, 2008 - Filed Under Business
This article writes about some basic understanding of S.W.O.T. Analysis. Once you get a feel of it, you may move on to a detail S.W.O.T. Analysis articles.
S.W.O.T. is an abbreviation for Strengths, Weaknesses, Opportunities and Threats. So, what constitute these factors in our real life applications? As a general guideline, S.W.O.T. may be categorized into two factors. They are commonly known external and internal factors.
The external factors refers to elements that are normally outside your own control and most of the time deal with external environmental factors. Example are factors that are political, economic, societal and technological in short commonly known as P.E.S.T. Within the S.W.O.T., the Opportunities and Threats belongs to this category.
On the other hand, Internal factor refers to factors that are internal in nature and normally within your own control. Examples of such factors are capabilities related elements such as production capability, market knowledge, management of distributors etc.
Within the S.W.O.T., Strengths and Weaknesses are internal factors. In real life application, how do you differential between all the four factors. To explain, let me illustration it with a situation as below:
Situation:
Company A is loosing market share over the last 1 year. Using S.W.O.T., you need to identify as many contributing factors pertaining to loosing market share in accordance to the four factors. If you form a team to perform the S.W.O.T., a brainstorming tool is used.
Say, you are able to establish these factors, then you need to categorized them into the four S.W.O.T. listed below:-
Strengths-
- High product quality
- wide marketing network
- sound financial support
Weaknesses
- slow in delivery
- pricing is not competitive
- product range is limited
Opportunities
- strong market demand
- increasing quality conscious end-user
- Consolidation of small players
Threats
- Rising raw material cost
- Free import of goods from China
- Price war among local supplier
In summary, with some basic understanding of S.W.O.T. Analysis, the chances is for you to develop a strategy or solution to this above situation will be value add to your organization.
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About the Author: Dr. LM Foong, PhD
He writes and publishes TQM articles, case studies and ebooks and it is available online at Resource Center in Total Quality Management
Tags: opportunities, strengths, swot analysis, swot article, threats, tqm, weaknesses
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