1、SWOT AnalysisVincent LiSWOT AnalysisnA widely used framework for organizing and using data and information gained from situation analysisnEncompasses both internal and external environmentsnOne of the most effective tools in the analysis of environmental data and informationnIt is an instrument with
2、in strategic planningWhat is SWOT analysis?nDeveloped as a tool for marketing in which internal and external environment are scanned as an important part of the strategic planning process.nInternal factors can be classified as strengths(S)or weaknesses(W).nExternal factors can be classified as oppor
3、tunities(O)or threats(T).nStrengths and Weaknesses of the internal environment e.g.staff(or internal customers),office technology,wages and finance,etc.nOpportunities or Threats from the external micro-environment e.g.clients,agents and distributors,suppliers,our competitors,etc.and macro-environmen
4、t e.g.trends in Political,Economic,Social,Technological,Legal and Environmental factors(PESTLE).Why use SWOT tools?nSWOT is a structured analytical framework.nSWOT can be used in conjunction with other tools for audit and analysis e.g.PEST(LE)analysis,Porters Five-Forces analysis.nSWOT helps to focu
5、s on areas of strength,recognise limitations and develop opportunities in the most promising directions.nSWOT is used widely because it is quick and easy to learn.SWOT FactorsnFactors affecting an organization can usually be classified as:nInternal factorsnStrengths(S)nWeaknesses(W)nExternal factors
6、nOpportunities(O)nThreats(T)StrengthsOpportunitiesWeaknessesThreatsnStrengths and weaknessesnScale and cost economiesnSize and financial resourcesnIntellectual,legal,and value of reputationnOpportunities and threatsnTrends in the competitive environmentnTrends in the technological environmentnTrends
7、 in the socio-cultural environmentStrengths(Internal)nResources and capabilities that can be used as a basis for developing a competitive advantage.nCharacteristics that can be controlled.nPositive tangible and intangible attributes,internal to an organization.nConsider this from the technologists p
8、oint of view and from the point of view of the people who will use the data.nDont be modest.Be realistic.If you are having any difficulty with this,try writing down a list of the characteristics of Earth observation missions and data products.Some of these will hopefully be strengths!nRemember that
9、not all strengths offer an advantage over competing techniques.For example,if all techniques generate global products then although a strength it is not an advantage.TIPSWeaknesses(Internal)nIn some cases,a weakness may be the flip side of a strength.nFactors that are within an organizations control
10、 that detract from its ability to attain the core goal.In which areas might the organization be improved.OpportunitiesnDevelopments in science and technology.nChanges in markets on both a national and international scale.nChanges in government policy e.g.removal of international trade barriers,signi
11、ng Kyoto agreement,homeland security and the fight against terrorism.nChanges in social patterns,population profiles,lifestyle changes,etc.nMergers,joint ventures or strategic alliances based on geopolitical and public-private partnerships.nNon-investment or other reason leading to a market being va
12、cated by a competitor technology.nAn unfulfilled customer need e.g.a specific data requirements or data required for a particular geographical area.nOpportunities to add value and increase profit margin e.g.new business models for the knowledge economy and information society.nA later stage in SWOT
13、analysis is to look at the strengths and ask whether these open up any opportunities.Alternatively,look at weaknesses and ask whether you could open up opportunities by eliminating them.n Analysing the external environment may reveal certain new opportunities and emerging applications.n External att
14、ractive factors that represent the reason for an organization to exist and develop.TIPSThreatsSome examples of such threats include:nChanging demand.nEmergence of new technologies or innovative products and services.nNew regulations or increased trade barriers e.g.environmental lobby seeks a ban on
15、launching spacecraft.nGovernment subsidies for competing technologies or disadvantageous taxation e.g.gaseous emissions.nCompeting technologies that blend better with societal and technological trends.nChanging specifications for products and services.nEconomic sustainability.nCould a non-technical
16、weaknesses seriously undermine the technology?n External factors,beyond an organizations control,which could place the organizations mission or operation at risk.The organization may benefit by having contingency plans to address them should they occur.n Classify them by their“seriousness”and“probab
17、ility of occurrence”TIPSFor the external factors(OT)Must plan forMinimum resources if anyMaintain flexibility in planForget itHighLowHighLowProbability of occurrenceSeriousness of ImpactThe SWOT matrixWeaknesses can be converted into strengths with strategic investment.Threats can be converted into
18、opportunities with the right resourcesWeaknesses that cannot be converted become limitations which must be minimized if obvious or meaningful to customers or stakeholdersThe assessment of strengths and weaknesses should look beyond products,services and resources to examine processes that meet custo
19、mers or stakeholders needs Achieving goals and objectives depends on transforming strengths into capabilities by matching them with opportunitiesCreate a plan of actionnWhat steps can you take to:nCapitalize on or maximize your strengthsnOvercome or minimize your weaknessesnTake advantage of some ne
20、w opportunitiesnRespond to the threatsnSet goals and objectives,like with any other planWhat is a productive SWOT analysisnStay focused.Be specific and avoid grey areas.Keep your swot short and simple.Avoid complexity and over analysisnIt can be a mistake to complete just one generic SWOT analysis f
21、or the entire organizationnWhen we say SWOT analysis,we mean SWOT analysesnCollaborate with other functional areasnInformation generated from the SWOT analysis can be shared across functional areasnSWOT analysis can generate communication between managers that ordinarily would not communicatenCreate
22、s and environment for creativity and innovationnExamine issues from the customers/stakeholders perspectivenWhat do stakeholders(and non-stakeholders)believe about us as an organization?nWhat do stakeholders(and non-stakeholders)think of our product quality,service quality,customer service,price,over
23、all value,convenience,and promotional messages in comparison to our competitors?nWhat is the relative importance of these issues as stakeholders see them?nTaking the stakeholders perspective is the cornerstone of a well done SWOT analysisnLook for causes,not characteristicsnCauses for each issue in
24、a SWOT analysis can often be found in the organizations and competitors resourcesnMajor types of resources:Financial,Organizational,Intellectual,Informational,Legal,Relational,Human,ReputationnSeparate internal issues from external issuesnFailure to understand the difference between internal and ext
25、ernal issues is one of the major reasons for a poorly conducted SWOT analysis.nKnow Yourself,Customer/Stakeholder,Competitors,EnvironmentSuccessful SWOT analysisnBe realistic about the strengths and weaknesses.nAnalysis of case studies should distinguish between state of the art of technology and po
26、tential or unproven technologies.nBe specific.Avoid grey areas.nHighlight distinctive characteristics that differentiate between techniques.nKeep your SWOT analysis short and simple.Avoid complexity and over analysis.nRemember.SWOT is subjective.A word of caution,SWOT analysis can be very subjective
27、.Do not rely on it too much.Two people or two applications rarely come-up with the same final version of SWOT.ExampleA start-up small consultancy business might carry out the following SWOT analysis:nStrengths:nWe are able to respond very quickly as we have no red tape,no need for higher management
28、approval,etc.nWe are able to give really good customer care,as the current small amount of work means we have plenty of time to devote to customersnOur lead consultant has strong reputation within the marketnWe can change direction quickly if we find that our marketing is not workingnWe have little
29、overhead,so can offer good value to customersExamples of strengths include:npatentsnstrong brand namesngood reputation among customersncost advantages from proprietary know-hownexclusive access to high grade natural resourcesnfavorable access to distribution networksnyour specialist marketing expert
30、ise.na new,innovative product or servicenlocation of your businessnquality processes and procedures nany other aspects that add value to the product or service e.g.digital workflow and data distribution.ExamplenWeaknesses:nOur company has no market presence or reputationnWe have a small staff with a
31、 shallow skills base in many areasnWe are vulnerable to vital staff being sick,leaving,etc.nOur cash flow will be unreliable in the early stagesFor example,each of the following may be considered weaknesses:nlack of patent protectionna weak brand namenpoor reputation among customersnhigh cost struct
32、urenlack of access to the best natural resourcesnlack of access to key distribution channelsnlack of marketing expertisenundifferentiated products and service(i.e.in relation to your competitors)nlocation of your businessnpoor quality goods or servicesndamaged reputationExamplenOpportunities:nOur bu
33、siness sector is expanding,with many future opportunities for successnOur local council wants to encourage local businesses with work where possiblenOur competitors may be slow to adopt new technologiesnThreats:nWill developments in technology change this market beyond our ability to adapt?nA small
34、change in focus of a large competitor might wipe out any market position we achievenThe consultancy might therefore decide to specialize in rapid response,good value services to local businesses.Marketing would be in selected local publications,to get the greatest possible market presence for a set advertising budget.The consultancy should keep up-to-date with changes in technology where possible.
