Introduction

SWOT (Strengths, Weaknesses, Opportunities and Threats) summarises the key issues emerging from the business
environment that are most likely to impact on strategy development. SWOT Analysis provides a robust basis for building
resilience by identifying vulnerabilities, weaknesses and risks. Generally internal factors are considered under Strengths and
Weaknesses whereas external factors are considered within Opportunities and Threats.
A SWOT analysis explores the relationship between the environmental influences and the strategic capabilities of a company
compared to its competitors.
SWOT is a useful tool because it provides a basis against which to generate strategic options and assess future courses of
action. In manufacturing SMEs, if the strategic capability is to be understood, it must be remembered that SWOT analysis is
really only useful if it is comparative if it examines strengths, weaknesses, opportunities and threats in relation to
competitors.
A SWOT analysis should help SME managers focus discussion on future choices and the extent to which they are capable of
supporting these strategies.
How does it work in practice?
Identify the key environmental changes ,external opportunities and threats
Be realistic and identify company strengths and weaknesses
Be specific and avoid grey areas in SWOT analysis
Always apply SWOT in relation to competition
Avoid complexity and over analysis
Be aware that SWOT is subjective and aims to provide a basis to start discussions in the management team on long term
strategic issues
Introduction
SWOT (Strengths, Weaknesses, Opportunities and Threats) summarises the key issues emerging from the business
environment that are most likely to impact on strategy development. SWOT Analysis provides a robust basis for building
resilience by identifying vulnerabilities, weaknesses and risks. Generally internal factors are considered under Strengths and
Weaknesses whereas external factors are considered within Opportunities and Threats.
A SWOT analysis explores the relationship between the environmental influences and the strategic capabilities of a company
compared to its competitors.
SWOT is a useful tool because it provides a basis against which to generate strategic options and assess future courses of
action. In manufacturing SMEs, if the strategic capability is to be understood, it must be remembered that SWOT analysis is
really only useful if it is comparative if it examines strengths, weaknesses, opportunities and threats in relation to
competitors.
A SWOT analysis should help SME managers focus discussion on future choices and the extent to which they are capable of
supporting these strategies.
How does it work in practice?
Identify the key environmental changes ,external opportunities and threats
Be realistic and identify company strengths and weaknesses
Be specific and avoid grey areas in SWOT analysis
Always apply SWOT in relation to competition
Avoid complexity and over analysis
Be aware that SWOT is subjective and aims to provide a basis to start discussions in the management team on long term
strategic issues
Strengths Weaknesses
Opportunities Threats
criteria examples

Market developments?
Competitors' vulnerabilities?
Industry or lifestyle trends?
Technology development and
innovation?
Global influences?
New markets, vertical, horizontal?
Niche target markets?
Geographical, export, import?
New USP's?
Tactics: eg, surprise, major contracts?
Business and product development?
Information and research?
Partnerships, agencies, distribution?
Volumes, production, economies?
Seasonal, weather, fashion influences?
criteria examples

Advantages of proposition?
Capabilities?
Competitive advantages?
USP's (unique selling points)?
Resources, Assets, People?
Experience, knowledge, data?
Financial reserves, likely returns?
Marketing - reach, distribution,
awareness?
Innovative aspects?
Location and geographical?
Price, value, quality?
Accreditations, qualifications,
certifications?
Processes, systems, IT,
communications?
Cultural, attitudinal, behavioural?
Management cover, succession?
Philosophy and values?
SWOT Analysis Template

State what you are assessing here ___________________________________________________________________________________________

(This particular example is for a new business opportunity. Many criteria can apply to more than one quadrant. Identify crite

Alan Chapman 2005-08.
Weaknesses
Threats
criteria examples

Disadvantages of proposition?
Gaps in capabilities?
Lack of competitive strength?
Reputation, presence and reach?
Financials?
Own known vulnerabilities?
Timescales, deadlines and pressures?
Cashflow, start-up cash-drain?
Continuity, supply chain robustness?
Effects on core activities, distraction?
Reliability of data, plan predictability?
Morale, commitment, leadership?
Accreditations, etc?
Processes and systems, etc?
Management cover, succession?
criteria examples

Political effects?
Legislative effects?
Environmental effects?
IT developments?
Competitor intentions - various?
Market demand?
New technologies, services, ideas?
Vital contracts and partners?
Sustaining internal capabilities?
Obstacles faced?
Insurmountable weaknesses?
Loss of key staff?
Sustainable financial backing?
Economy - home, abroad?
Seasonality, weather effects?
State what you are assessing here ____________________________________________________________________________________________________________
(This particular example is for a new business opportunity. Many criteria can apply to more than one quadrant. Identify criteria appropriate to your own SWOT situation.)