Senior Business

SWOT ANALYSIS

This is about the up close and personal stuff.

It helps to identify areas of improvement and formulate strategies that can leverage strengths, address weaknesses, capitalise on opportunities, and mitigate potential threats.

STRENGTHS

What do you do well?
What unique resources can you draw on?
What do others see as your strengths?

WEAKNESSES

What could you improve?
What resources could be adapted?
What are others likely to see as weaknesses?

OPPORTUNITIES

What opportunities are open to you?
What trends could you take advantage of?

THREATS

What threats could harm you?
What is your competition doing?

Internal Factors

Internal factors refer to the strengths and weaknesses of an organisation that are within its control. These factors can include the organisation’s resources, capabilities, culture, leadership, and structure, among others.

For example, a company may have a strong brand, a talented workforce, efficient production processes, or a unique technology that sets it apart from competitors. Conversely, the company may have weaknesses in areas such as financial management, outdated technology, or lack of innovation.

External Factors

External factors refer to opportunities and threats that exist outside of the organisation, and over which the organisation may have little or no control. These factors can include changes in the market, political or regulatory environment, economic conditions, technology trends, competition, or social and cultural factors.

For example, an organisation may face opportunities such as a growing market, a shift in consumer preferences towards their products, or favourable government policies. Conversely, they may face threats such as new entrants to the market, changing customer preferences, economic downturns, or disruptive technological changes.

SWOT makes Netflix so successful anyway?

(3.16 mins)

COMMON ERRORS WHEN CREATING A SWOT

  1. Confusing internal and external factors
  2. Focusing only on the internal
  3. Failing to prioritise relevant data
  4. Being too generic in the analysis
  5. Not considering all functional areas