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Business Analysis - SWOT Framework

28 September 2015 |

A SWOT analysis can be used to conduct an internal review of how a business is performing and a review of external factors to assess how well positioned it is to take advantage of present/future opportunities and tackle any present/future challenges. It involves assessing the Strengths and Weaknesses of a business, alongside the Opportunities and Threats that have arisen/may arise by virtue of the market(s) in which it operates.

You could structure a presentation (where relevant) based upon the "SWOT analysis" model:

Strengths

  • Which positive attributes does the company possess?
  • Does it have unique resources that contribute towards its success? Unique / popular products? Unrivalled research capabilities? Particular employees?? Customer loyalty? Strong branding?
  • Does it have a competitive advantage?

Weaknesses

  • Which negative attributes does the company exhibit?
  • Is it struggling financially? Are its products outdated? Does it lack strong brand recognition?
  • Has the company tried to deal with its weaknesses?

Opportunities

  • Which opportunities are currently available for the company to exploit?
  • Is its market growing? Is consumer behavior changing in a way that could benefit the company?
  • Are other opportunities likely to arise in the future?

Threats

  • Which external factors could negatively impact upon the company?
  • Is the market shrinking? Is the market becoming saturated? Is the government regulating the market more heavily? Are consumers spending less (e.g. is there a recession)?
  • Are these factors affecting all firms in the industry, or the company in particular?