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SWOT - Coggle Diagram
SWOT
SWOT Analysis
Strengths
These are Internal factors that the business is good at/provide a competitive advantage
Examples:
Strong brand loyalty
Cheapest in the market
Good reputation
Weaknesses
These are internal factors that cause the business to struggle/ where its weak in
Examples:
“Stuck in the middle” - Porters generic strategies
No/weak unique selling point
Low profit margins (high revenue but high costs)
Threats
These are external factors that could pose a problem to the business
Examples:
Rough market conditions
Economy is struggling
Government could introduce new legislation that leads to increase in your costs
Opportunities
These are external factors that can be used to help the business
Examples:
Competitor goes bust/bankrupt/leaves the market
Market is growing
Changes in consumer trends that help the business (eg: environmental awareness helps ethically sourced businesses)
Pros and cons
Pros/advantages of doing one
Helps to identify things the business is good at (to promote in things like marketing) as well as things to improve on (to help improve the competitiveness of the business).
Helps add evidence to back up and make strong decisions
Cons/drawbacks on doing one
Only from a snapshot in time so things can change/flutrate
Just because there are external factors you can put into opposites does not automatically mean you can help the business grow by using it. Inverse is true for threats.
How a business can use SWOT
Identify internal (strengths and weaknesses) and external factors (Opportunities and Threats
See which quadrant may impact the business the most and make decisions partly based off it
If a positive quadrant is the strongest (Strengths or oppuntites) then the business can use this to help grow the business.
The business can use other models such as Kays distivie capabilities or Ansoff's matrix to make better and more informed decisions if it needs/wants to
If a negative quadrant is the strongest (weaknesses or Threats) then the business can take steps to minimise the disruption either of these could cause
What happens next?
A business can use the SWOT model alongside another model to make better decisons
For example:
If a strength is "highest quality on the market" then you could also use Porter's generic strategy and use Porter's differentiation Foucs strategy to create a unique selling point for your products