Skill Module 7.4

Skill Module 7.4

Skill Module 7.4
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The Mechanics of a SWOT Analysis
Take the responses from the sources and put them into a SWOT table like the one shown in Figure 7.2. To analyze the ideas listed in the SWOT table, start with opportunities. Identify the opportunities that seem strongest. Compare these to your strengths, looking for matches. For example, if there is an opportunity for "more postsale support" in a computer store and one of your strengths is "great at explaining computers," you would be well-positioned to move on the opportunity. Similarly, you compare threats to your weaknesses. A typical threat is "insufficient capital" for a startup. Then if you see "lack of capital" as one of your firm's weaknesses, you know where you need to put in extra effort. It also makes sense to do a cross-comparison, such as strengths to threats and weaknesses to opportunities. This can point the way to solving problems. For example, in the lack of capital problem, having a strength such as "a large support network" might offer a way to look for the missing start-up capital. Along the same lines, strong opportunities can offset weaknesses. For example, a lack of experience with a product is less of a weakness when the product is new and demand for it is very high.

	STRENGTHS Customers ready to buy Contracts for products or service Adequate financial backing Specialized knowledge Strong support network Trade secrets, secret recipes Patents, trademarks, copyrights Brand or personal recognition Location or facility advantages Superior product/service or processes Superior staff Prior self-employment experience Prior managerial experience Prior sales experience Prior experience in the industry Prior experience in the locality Prior experience in the market	WEAKNESSES Contracts for products or service Inadequate financial backing Easy-to-copy business Weak or no support network Undistinctive product, service, or brand Location or facility disadvantages Inadequate staff Lack of self-employment experience Lack of managerial experience Lack of sales experience Lack of experience in the industry Lack of experience in the locality Lack of experience in the market
	OPPORTUNITIES (FROM ENTRY WEDGES) Supply shortages Unutilized resources Customer contracting Second sourcing Market relinquishment Favored purchasing Rule changes by government Technology creating new products/services New markets opening up	THREATS Economic downturn Oversupply Competitive pressures Supplier/customer pressures Major supplier/customer loss Missed window of opportunity Negative government regulations or actions Obsolescence from market or technology change

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Home > Chapter 7 > Skill Module 7.4

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