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A SWOT analysis offers an overview of a company´s state of affairs at a
given time.
Having evaluated and recognised your company´s state of affairs, you are in
a better position to work out a strategy for your future business operations.
Structure of SWOT analysis
The SWOT analysis is structured as shown below:
- The company´s internal capabilities (Strengths, Weaknesses)
- External parameters affecting the company (Opportunities, Threats)
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STRENGTHS – internal |
WEAKNESSES- internal |
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Strength is what your company is good at.
Such as:
Personal competencies, Core area knowledge, Family, Good
reputation, Well-situated premises, Sound economy, Good relationship with
the banker, Special organisation, Cooperation partners, Business concept,
Proceeds, High turnover, Alternative products/services, Novel products,
Advanced technology, Unique marketing.... |
Weakness is something your company does not has or is less good at.
Such as:
Personal qualities, Lack of core area knowledge, Family, Bad
reputation, Adverse location, Bad economy, Sceptical banker, Special
organisation, Cooperation partners, Business concept, Proceeds, Turnover,
Alternative products/services, Outdated products, Obsolete technology, No
marketing.. |
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OPPORTUNITIES – external |
THREATS – external |
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Opportunities in the market can be seized or missed.
Such as:
New customer groups, Increased purchasing power, High birth rates,
Expansion of public institutions, New trends, Advanced technology, Dying
competition, Capital infusion, Timing, Network, Grants/subsidies,
Supplier´s credit, Swift market penetration, New legislation, Asian
progress |
Threats are external parameters threatening your company´s business
opportunities.
Such as:
Customers moving or go bankrupt, Weakened purchasing power,
Low birth rates, Building freeze, New trends, New technologies, New
competition, Timing, Networks disintegrate, Grants/subsidies stop, Supplier
restrictions, Short time to penetrate market, New legislation, Planes
crashing into the World Trade Centre.. |
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Metro Map:
How to start a business
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How to use SWOT analysis
The SWOT analysis is a tool allowing you to evaluate your company and may give
you the possibility to draw conclusions on your company´s future.
The most important questions that the SWOT analysis sheds light on:
- Does the company have core areas to base a strategy on?
- Does the company have weaknesses that make it vulnerable and are there
means to cure this?
- What market opportunities does your company have with its present
knowledge and resources? (Opportunities not backed by resources are mere
illusions)
- What external threats must the company be aware of?
Strategy
Opportunities and Threats affect your company´s rate of activity.
Thus, a strategy must include the below features:
- Focused on market opportunities using your company´s strength
- Be a defence against external threats
Core business
The secret of all strategic planning is the ability to boil down your
company´s strengths of management, services/products, marketing, development,
etc. to your company´s core business.
The core business is the specific variation of your product or service that
makes it unique compared to other similar products.
The core business of www.dynamicbusinessplan.com is to "Deliver basic
core knowledge about starting and running a small business"
Core Competence
Core competence is the features that make your company differ from your
competitors.
Often, the core competence is to be found in a person possessing, great trade
skills or specialised manufacturing know how within an area.
Only rarely does core competence derive from a physical object.
There are many features of core competence:
- Professional and competent manufacturing process / performance of service
- Friendly and competent staff
- Confidence-inspiring sales attitude
- Profound expertise
- Growth oriented
- Concise sales letter formulating capacity
- Gift of seizing business opportunities
- Effective salesmanship
- Very persevering
- One of three with expert knowledge within a field
- Well-situated premises
- Large network within the product line
- Free download of SWOT analysis
- Go to next
business issue: Terms of Sale and Delivery
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| Kingsley Pierre Gwaza, malawi |
16-11-2010 |
10 years experience
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