S.W.O.T.

Analysis

SWOT: Description
A SWOT analysis generates information that
is helpful in matching an organization or
groups goals, programs, and capacities to
the social environment in which it operates.
Factors internal to the firm usually can be
classified as strengths (S) or weaknesses
(W), and those external to the firm can be
classified as opportunities (O) or threats (T).
It is an instrument within strategic planning.

The purpose of SWOT Analysis

It is an easy-to-use tool for developing an
overview of a companys strategic situation
It forms a basis for matching your companys
strategy to its situation

S.W.O.T. Analysis

Factors Internal
to Organization

Factors External
to Organization

Strengths

Weakness

Opportunities

Threats

SWOT: Internal Factors

Strengths
Positive tangible and intangible attributes, internal
to an organization. They are within the
organizations control.

Weakness
Factors that are within an organizations control
that detract from its ability to attain the core goal.
Which areas might the organization improve?

SWOT-Strength
A strength could be:
Your specialist marketing expertise.
A new, innovative product or service.
Location of your business.
Quality processes and procedures.
Any other aspect of your business that adds
value to your product or service.

SWOT-Weakness
A weakness could be:
Lack of marketing expertise.
Undifferentiated products or services (i.e. in
relation to your competitors).
Location of your business.
Poor quality goods or services.
Damaged reputation.

SWOT: External Factors

Opportunities
External attractive factors that represent the reason for an
organization to exist and develop. What opportunities exist
in the environment, which will propel the organization?
Identify them by their time frames

Threats
External factors, beyond an organizations control, which
could place the organization mission or operation at risk.
The organization may benefit by having contingency plans
to address them if they should occur.
Classify them by their seriousness and probability of
occurrence.

SWOT-Opportunities
An opportunity could be:
A developing market such as the Internet.
Mergers, joint ventures or strategic alliances.
Moving into new market segments that offer
improved profits.
A new international market.
A market vacated by an effective competitor.

SWOT-Threat
A threat could be:
A new competitor in your home market.
Price wars with competitors.
A competitor has a new, innovative product or
service.
Competitors have superior access to channels
of distribution.
Taxation is introduced on your product or
service.

Simple Rules for SWOT Analysis

Be realistic about the strengths and weaknesses
of your organization or group.
Distinguish between where your organization is
today, and where it could be in the future
Be specific: Avoid gray areas.
Always analyze in relation to your core mission.
Keep your SWOT short and simple. Avoid
complexity and over analysis
Empower SWOT with a logical conceptual
framework.

SWOT Analysis Examples

Example 1
Wal-Mart SWOT Analysis. Strengths - Wal-Mart is a powerful
retail brand. It has a reputation for value for money,
convenience and a wide range of products all in one store.
Weaknesses - Wal-Mart is the World's largest grocery retailer
and control of its empire, despite its IT advantages, could
leave it weak in some areas due to the huge span of control.
Opportunities - To take over, merge with, or form strategic
alliances with other global retailers, focusing on specific
markets such as Europe or the Greater China Region. Threats Being number one means that you are the target of
competition, locally and globally.

SWOT Analysis: Coca Cola

SWOT Analysis: Nokia

Example 3
About the company

Nokia Corporation (NYSE: NOK) is one of the world's largest

telecommunications equipment manufacturers.

It has since established a leading brand presence in many local markets,

and business has expanded considerably in all areas to support customer
needs and the growth of the telecommunications industry.

Nokia
also
produces
mobile
phone
infrastructure
and
other telecommunications equipment for applications such as traditional
voice telephony, ISDN, broadband access, professional mobile radio, voice
over IP, wireless LAN and a line of satellite receivers.
Nokia provides mobile communication equipment for every major market
and protocol, including GSM, CDMA, and WCDMA

SWOT Analysis: Nokia

Strengths:
Nokia world's Largest producer and manufacturer of cell phones as
well as has the largest distribution network around the world.
It is also known for the Creativity, Innovativeness, durability and
reliability.
It has very good financial position , higher return on equity(ROE),
return on assets(ROA) and net profit margins(NPM).
Nokia leads the global cell phone industry.
Nokia dominates the world cellular industry because it has the strong
R&D facilities.
It has diverse work force and advanced technology.

SWOT Analysis: Nokia

Weakness:

It has declared its profits had dropped by 40% in 2010.

Nokia mobile phone prices are higher as compare to
china mobile phones.
Nokia presence in the US cellular industry is very low and
in japan it has very weak handsets.
In india nokia has few service centers and very appalling
after sales service.
In Japan Nokia closed the mobile handsets distribution
and also canceled the distribution of E71 handset due to
low market presence.

SWOT Analysis: Nokia

Opportunities:
In 2011, the global cell phone industry expected to grow
by double digits.
Today, Asia-Pacific mobile phone industry is one of the
fastest-growing industry in the world.
Developing countries like China , Bangladesh , India and
Pakistan has enormous demand potential.
Nokia had a 50-50 joint venture with Siemens of Germany.

Youth wants the stylish aesthetics , fashionable

handsets, It drive the new market for players.

SWOT Analysis: Nokia

Threats:
Consumers are becoming more complicated in the choice

of handset due to new styles by china mobiles.

Difficult for sellers to differentiate their products and
retain loyalty.
Nokia is facing very strong price pressure from china and
other mobile producers.
Nokia is losing global market share after the arrival of
several Chinese producers.
In the Asia/Pacific emerged competitive forces.
Apple , RIM and the other sellers have created strong
pressure on Nokia.