SWOT analysis is a business analysis process that ensures that
objectives for a project are clearly defined and that all factors
related to the project are properly identified. The SWOT analysis
process involves four areas: Strengths, Weaknesses, Opportunities and
Threats. Both internal and external components are considered when doing
SWOT Analysis, as they both have the potential to impact the success of
a project or venture. The following is a brief summary of SWOT Analysis
components:
- Strengths
Strengths in SWOT analysis are the
attributes within an organization that are considered to be necessary
for the ultimate success of a project. Strengths are resources and
capabilities that can be used for competitive advantage. Examples of strengths that are often cited include:
- Strong brand names
- Good reputation
- Cost advantages of proprietary know-how
- Weaknesses
The factors within the SWOT analysis
formula that could prevent successful results within a project are
Weaknesses. Weaknesses include factors such as an abundance of rivalry
between departments, a weak internal communication system, lack of
funding and an inadequate amount of materials. Weaknesses can derail a
project before it even begins. Other Weaknesses include:
- Weak brand name
- Poor reputation
- Ineffective and high cost structure
- Opportunities
Opportunities are classified as
external elements that might be helpful in achieving the goals set for
the project. These factors could involve vendors who wish to work with
the company to help achieve success, the positive perception of the
company by the general public, and market conditions that could make the
project desirable to the a segment of the market. Additional
Opportunities include:
- Arrival of new technology
- Unfulfilled customer needs
- Taking business courses (training)
- Threats
These external factors could gravely
affect the success of the project or business venture. The possible
threats that are critical to any SWOT analysis include a negative public
image, no ready-made market for the final product and the lack of
vendors who are able to supply raw materials for the project. Some other
threats include:
- Trend changes
- New regulations
- New substitute products
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