Swot Analysis
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SWOT has a long history as a tool of strategic and marketing analysis. No one knows who first invented SWOT analysis. It has features in strategy textbooks since at least 1972 and can now be found in textbooks on marketing and any other business disciplines. It advocates say that it can be used to gauge the degree of “fit” between the organisation’s strategies and its environment, and to suggest ways in which the organisation can profit from strengths and opportunities and shield itself against weaknesses and threats (Adams, 2005). However, SWOT has come under criticism recently. Because it is so simple, both students and managers have a tendency to use it without a great deal of thought, so that the results are often useless. Another problem is that SWOT, having been conceived in simpler times, does not cope very well with some of the subtler aspects of modern strategic theory, such as trade-offs (De Witt and Meyer, 1998).
Strengths
Determine an organisation’s strong points. This should be from both internal and external customers. A strength is a “resource advantage relative to competitors and the needs of the markets a firm serves or expects to serve”. It is a distinctive competence when it gives the firm a comparative advantage in the marketplace. Strengths arise from the resources and competencies available to the firm.
Weaknesses
Determine an organisation’s weaknesses, not only from its point of view, but also more importantly, from customers. Although it may be difficult for an organisation to acknowledge its weaknesses it is best to handle the bitter reality without procrastination. A weakness is a “limitation or deficiency in one or more resources or competencies relative to competitors that impedes a firm’s effective performance”.
Opportunities
Another major factor is to determine how organisations can continue to grow within the marketplace. After all, opportunities are everywhere, such as the changes in technology, government policy, social patterns, and so on. An opportunity is a major situation in a firm’s environment. Key trends