Completing the strategic review: SWOT analysis
Identifying and examining the factors that underpin your competitive performance
are traditionally done by undertaking a SWOT analysis (strengths, weaknesses,
opportunities and threats). SWOT has been around for many years and it remains
a favourite technique for exploring the dimensions of strategy, whatever the size
or complexity of the business. An effective strategy uses SWOT in the following
way:
• Match internal strengths (especially distinctive and core competences) to
external opportunities.
• Remedy internal weaknesses.
• Counter external threats.
The analysis proceeds along the following lines:
• Strengths: Where are you strong (vs competition)? What works well?
• Weaknesses: Where are you weak (vs competition)? What is not working well?
Where are the bottlenecks?
Strengths and weaknesses are internal factors. Use the checklist in Box 2.11 to
conduct a strengths and weaknesses analysis, looking ahead over the next one to
three years. You may need to adjust the headings to allow for the idiosyncrasies of
your own business, e.g. a manufacturer should expand the ‘production’ heading, a
retailer should add shop-related headings, etc.
Looking outside the business to opportunities and threats, the analysis should
focus on specific customers and markets, and also on wider environmental
(PEST) factors
Identifying and examining the factors that underpin your competitive performance
are traditionally done by undertaking a SWOT analysis (strengths, weaknesses,
opportunities and threats). SWOT has been around for many years and it remains
a favourite technique for exploring the dimensions of strategy, whatever the size
or complexity of the business. An effective strategy uses SWOT in the following
way:
• Match internal strengths (especially distinctive and core competences) to
external opportunities.
• Remedy internal weaknesses.
• Counter external threats.
The analysis proceeds along the following lines:
• Strengths: Where are you strong (vs competition)? What works well?
• Weaknesses: Where are you weak (vs competition)? What is not working well?
Where are the bottlenecks?
Strengths and weaknesses are internal factors. Use the checklist in Box 2.11 to
conduct a strengths and weaknesses analysis, looking ahead over the next one to
three years. You may need to adjust the headings to allow for the idiosyncrasies of
your own business, e.g. a manufacturer should expand the ‘production’ heading, a
retailer should add shop-related headings, etc.
Looking outside the business to opportunities and threats, the analysis should
focus on specific customers and markets, and also on wider environmental
(PEST) factors
