SWOT / TWOS

SWOT / TWOS

1. Strengths

   • A firms strengths are its resources and capabilities that can be used as a basis for developing a competitive advantage
     • Examples: strong brand name, good rep among customers, cost advantages from proprietary know how, exclusive access to high grade natural resources and favourable

2. Weaknesses

   • the absence of certain strengths may be viewed as a weakness
     • Example: weak brand name, poor reputation among customers, high cost structure, lack of access to the best natural resources and lack of access to key distribution channels.
     • In some cases, a weakness may be the flip side of a strength.

3. Threats

   • The come from any part of: the market analysis, macro level environment analysis and the competitor analysis

4. Opportunities

5. A SWOT analysis is the summary of the external and internal situation analysis.

   • Each factor examined in the external analysis can result in a potential or actual threat or opportunity

6. Each factor examined in the internal analysis can result in a potential or actual relative weakness or strength

   • Strengths and weaknesses are internal factors which will have an impact on a business's ability to achieve its objectives
     • They can come from any part of the business's operations, and can be grouped as following: management capabilities, HR, financial factors, production factors, marketing capabilities, systems and processes, suppliers, distributors

7. Threats an opportunities will help or hinder the business in the pursuit of its objectives

   • Macro environment threats and opportunities
     • Demographic, economic, political/legal, technology, social/cultural, natural
   • Micro environment threats and opportunities
     • Competitors, suppliers, distributors, agents & intermediaries, customers

8. Factors must be relevant to the specific objectives