Strength, Weakness, Opportunities, Threat [SWOT] Analysis

A SWOT Analysis describes a business’s criteria in the long run. The four basic aspects analyzed are the business’s Internal Strengths and Weaknesses in the field of choice, compared to the market; External Opportunities and Threats from competitors or market; that undermine or advantage the business.

Considering a business XYZ, trading in a free market, governed by legislative rules of its National Trade Commission. A SWOT analysis table is as follows:

	Strengths	Weaknesses
Internal	Strategic Capabilities: Competent Employees; Technological Skills; Distribution mediums; Customer loyalty; Affordable quality products; Wide distribution mechanisms; Popular demands ( consumer trends); More than sufficient resources. Innovations: unprecedented marketing techniques; Innovative approach; Dynamic/ fresh management Latest technology Leadership: Aesthetic knowledge; Expert guidance; Advantage of experience. Goals: Market saturation; Long term profits; Expansion of business; Extension of products; Establishment of a brand name; Gaining consumer interest; Earning loyal customers.	Strategic Capabilities: Incompetent employees; Outdated technological skills; Limitation in distribution; Few customers ( new company); Low customer retention; Unreliable product or service; Unrealistic prices; Abundant availability of commodity (by other businesses); Limited resources. Innovations: Monotonous marketing tactics; Minimum risk- Minimum innovation; Incompetent management; Poor technology. Leadership: Zero market experience; No guidance; No knowledge; No idea as to what the customer response might be. Goals: Immediate profits; No long term plan; No ambition for expansion; No ambition of gaining customers or establishing a brand name.
	Opportunities	Threats
External	Legal and Regulatory: Changes in Government policies; An opportunity to establish a registered right over a commodity. Economic: Opportunity for international trade; Mergers with semi-private industries; private and public benefits; Shares in government companies; Chances of specialization under government banner; Liberalization of international market; Forming a monopoly; Lower personal taxes; Change in population demographics; Change in customer wants. Technological: Technological advances; New distribution mediums.	Legal and Regulatory: Change in government policies; Tax increase; Laws related to use of resources for production; Copyright issues; Specific legal restrictions on international sale; Regulations imposed due to modern environmental or social issues. Economic: Change in population demographic; A threat of take-over by bigger competitors; Monopolistic competition; Changes in customer wants; Newer distribution mediums; Distribution restrictions; Bankruptcy. Technological: Advancement in technology; Inability to afford newer technology.

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