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Strategic Analysis and Planning

Swot Matrix or Swot Analysis


SWOT MATRIX (SWOT ANALYSIS) WITH EXAMPLES -

  •  It is tool for strategic analysis of an organization. Which considers both internal as well as external environment
  •  It is also known as swot matrix.
  •  It is a theoretical oriented concept, which helps to determine what are the strengths, weaknesses, opportunities and threats of any organization.

STRENGTHS IN SWOT ANALYSIS –

(i) Strengths are the factors in which organization holds expertise and helps in success of an organization.

(ii) It is caused by internal factors.

(iii) Exampales of corporate strengths of an organization are :-

  • Things your company does well.
  • Qualities that separate your company from competitors.
  • Internal resources e.g. Skills of employees etc.
  • Tangible assets e.g. Goodwill, technologies etc.
  • Financially very sound
  • Good products and product-mix with high demand including future prospects
  • Full capacity utilisation, locational advantages
  • Good infrastructures
  • Good industrial relations
  • No political interference

WEAKNESSES IN SWOT ANALYSIS -

(i) Weaknesses are internal limitations of an organization that may interfere with company’s ability to achieve its objectives .

(ii) It is caused by internal factors.

(iii) Examples of corporate weaknesses of an organization are :-

  • Things your company lacks
  • Things your competitors do better than you.
  • Resources limitations, e.g. bad quality employees.
  • Under-utilisation of capacity
  • High debt burden in the capital structure
  • Poor product-mix
  • Lack of managerial strengths
  • Industrial unrest
  • Technology gap
  • Demand gap
  • Poor infrastructures
  • Raw materials source at a distance
  • Lack of latest information technology
  • Competition war
  • Global threats

OPPORTUNITIES IN SWOT ANALYSIS –

(i) An environment with in which an organization operates offers opportunities to it and organization should identify such opportunities by proper planning.

(ii) It is depend upon external factors.

(iii) Generally opportunities of an organization are :-

  • Few competitors in your area.
  • Emerging needs for your products or services.
  • Press or media coverage to your company.
  • Seasonal/climatical demand of products
  • Global markets for the company’s products/services (Export opportunities)
  • Rural markets to explore and to penetrate
  • To explore the markets 
  • To avail of the incentives/concessions declared by Central and State Governments
  • Diversifications opportunities
  • Mergers/acquisition opportunities
  • Good home market available due to boost in the economy

THREATS IN SWOT ANALYSIS –

(i) Threats are factors existing in external environment, which is uncontrollable and not good for stability and survival of an organization.

(ii) It is caused by external factors.

(iii) Generally threats of an organization are :-

  • Emerging competitors.
  • Changing legal environment, e.g. GST
  • Negative press or media coverage.
  • Changing customers attributes towards your company.
  • Globalisation
  • Price cutting war
  • Free imports
  • Industrial unrest
  • Political instability
  • Quality thrusts
  • High and adverse debt equity ratio
  • Increase in financing cost
  • Economic slow down due to international recession impact

SWOT ANALYSIS EXAMPLES 

1. SWOT MATRIX FOR APPLE INC:

Strengths of Apple Inc. -
  • Market leader in an array of products and services 
  • Highly strong brand image 
  • Financial strength 
  • Innovative and highly sophisticated supply chain 
  • High profit margins
  • Large and loyal customer base 

Weaknesses of Apple Inc. - 

  • Products not priced competitively 
  • Thin product range in comparison to the competitors 
  • Products incompatible with the other brands 
Opportunities of Apple Inc. - 
  • Rising demand for the electronic gadgets 
  • Product diversifi cation 
Threats of Apple Inc. - 
  • Elevated competition 
  • Rise in cost of inputs
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