SWOT Analysis

SWOT Analysis is  consisted in a business strength, weakness, opportunity and threats that a it has to face in market. SWOT Analysis is a tool for auditing an organization and its environment. The role of SWOT analysis is to take the information from the environmental analysis and separate it into internal issues (Strength and Weakness) and external issues (Opportunities and Threats). Once this is completed, SWOT analysis determines if the information indicates something that will assist the firm in accomplishing its objectives and obstacles that must be overcome or minimized to achieve desired results.


A well-developed listing of strength should be able to answer a couple of questions. What are the firm’s advantages? What does the firm do well?

A strength could be;

  • You specialist marketing expertise
  • A new innovative product or service
  • Location of your business
  • Any other aspect of your business that adds value to your product or service


A customer-focused SWOT may also uncover a firm’s potential weakness. Although some weakness may be harmless, those that relate to specific customer needs should be minimized if at all possible.

A weakness could be;

  • Lack of marketing expertise
  • Location of your business
  • Poor quality goods and services
  • Damaged reputation.

The role of the internal portion of SWOT is to determine whether resources are available or lacking so that strengths and weaknesses can be identified from this.


Opportunities and Threats.

Managers who are caught up in developing strengths and capabilities may ignore the external environment. A mistake of this magnitude could lead to an efficient organization that is no longer effective when changes in the external environment prohibits the firm’s ability to deliver value to its targeted customer segments. These changes can occur in the rate of overall market growth hand in the competitive economic, political, legal / technological or social-cultural environments.

Opportunities could be;

  • A developing market such as the internet
  • Merges, joint ventures or strategic alliance
  • Anew international market
  • A market vacated by an ineffective competition
  • Moving into new market segments that offer improved profits


A threat could be;

  • A new competitor in your home market
  • Price wars with competitors
  • A competitor has new innovative product or service
  • Taxation is introduced on your product or service
  • Competitors have superior access to channels of distribution



Post Author: Sam Muya