A SWOTT Analysis is used to identify the strengths, weaknesses, opportunities, threats and trends present within a company’s environment. Identifying these things gives a list the company has going in its favor as well as areas they may need to improve. Without taking the time to analyze these areas, the company may be offering services/products they are not equipped or knowledgeable enough to handle, or they may not be using their stronger areas to their full potential.
Strengths
Strengths are identified as “a successful application of a competency or exploitation of a critical factor to develop company competitiveness” (Kearney, 2007). These are areas benefiting the company. In order to identify these particular strengths, the company must sit down and analyze what things they have available to them and what areas of products/service they do well. Some questions to consider could be: What do you do well? What are your assets? Where are you making money? What experience do you have? What unique aspects to you have to offer your company?
Weaknesses
Weaknesses are a huge consideration when embarking into a business; it identifies the areas a company needs to consider working on and improving. “A company weakness is an unsuccessful application of a competency or the non-exploitation of a critical factor that diminishes company competitiveness” (Kearney, 2007). Some of the questions and considerations for a business idea: What do you need? Where are you loosing money?
Opportunities
Opportunities give a company an advantage over the competition and are identified as “an external condition that could positively impact the company’s critical performance parameters and improve competitive advantage provided positive action is taken in time” (Kearney, 2007). Some important opportunities currently considered and available to our company: What new needs of customers could you meet? What are the economic trends that benefit you? What are the technological breakthroughs? Where niches have your competitors missed?
Threats and Trends are another very important detail when reviewing your company. “A threat is an external condition that could negatively impact the company’s critical performance parameters and diminish competitive advantage provided positive action is not taken in time” (Kearney, 2007). Trends can also be identified as the things currently popular, whether to our business in specific, to our customers, or to the customers that our clients will serve. Some things to consider: Where are competitors about to bite you? Where are you vulnerable?
After completing the SWOTT Analysis, a company can adequately determine if they have more strengths than weaknesses or threats and what areas a company needs to improve to continue to compete with their competition. A SWOTT Analysis can be tedious, however, can be highly beneficial in the end and can even identify potential problem areas before they actually become a problem and threaten the welfare of the corporation.
References
Kearney, Denis, (2007). AMT Ireland, a PROMISE Partnership Member. Information retrieved on April 19, 2008
from website address: http://www.promise.org.uk/swot.htm
