SWOT ANALYSIS

SWOT ANALYSIS - WHAT TO LOOK FOR IN SIZING UP A COMPANY’S STRENGTHS, WEAKNESSES, OPPORTUNITIES, AND THREATS

Potential Internal Strengths

_   Core competencies in key areas

_   Adequate financial resources

_   Well-thought-of by buyers

_   An acknowledged market leader

_   Well-conceived functional area strategies

_   Access to economies of scale

_   Insulated (at least somewhat) from strong competitive pressures

_   Proprietary technology

_   Cost advantages

_   Better advertising campaigns

_   Product innovation skills

_   Proven management

_   Ahead on experience curve

_   Better manufacturing capability

_   Superior technological skills

_   Other?

Potential Internal Weaknesses

_   No clear strategic direction

_   Obsolete facilities

_   Subpar profitability because . . .

_   Lack of managerial depth and talent

_   Missing some key skills or competencies

_   Poor track record in implementing strategy

_   Plagued with internal operating problems

_   Falling behind in R&D

_   Too narrow a product line

_   Weak market image

_   Weak distribution network

_   Below-average marketing skills

_   Unable to finance needed changes in strategy

_   Higher overall unit costs relative to key competitors

_   Other?

Potential External Opportunities

_   Ability to serve additional customer groups or expand into new markets or segments

_   Ways to expand product line to meet broader range of customer needs

_   Ability to transfer skills or technological know-how to new products or businesses

_   Integrating forward or backward

_   Falling trade barriers in attractive foreign markets

_   Complacency among rival firms

_   Ability to grow rapidly because of strong increases in market demand

_   Emerging new technologies

Potential External Threats

_   Entry of lower-cost foreign competitors

_   Rising sales of substitute products

_   Slower market growth

_   Adverse shifts in foreign exchange rates and trade policies of foreign governments

_   Costly regulatory requirements

_   Vulnerability to recession and business cycles

_   Growing bargaining power of customers and suppliers

_   Changing buyer needs and tastes

_   Adverse demographic changes

_   Other?