SWOT (& TOWS) Analysis explained with examples

The SWOT (Strength, Weakness, Opportunity and Threat) analysis is a tool using which the ‘Internal’ and ‘External’ dimensions of an organization are analysed.

SWOT Explained

The four areas considered are:

• Strengths: Positive and Internal Factors

  Attributes of the organization helpful to achieving the objective and describing how they can be leveraged.

  • What advantages does the organization have?
  • What does the organization do better than its competitors?
  • What unique or lowest-cost resources can you draw upon that others can’t?
  • What do people in your market see as your strengths?

• Weaknesses: Negative and Internal Factors

  Attributes of the organization harmful to achieving the objective and how they can be minimized or neutralized.

  • What could the organization improve?
  • What should the organization avoid?
  • What are people in your market likely to see as weaknesses?
  • What factors lose you sales?

• Opportunities: Positive and External Factors

  External conditions helpful to achieving the objective.

  • What good opportunities can you spot?
  • What interesting trends are you aware of?

• Threats: Negative and External Factors

  External conditions harmful to achieving the objective.

  • What obstacles do you face?
  • What are your competitors doing?
  • Are quality standards or specifications for your job, products or services changing?
  • Is changing technology threatening your position?

SWOT Analysis templates

Here are some SWOT Analysis templates that you can use in your word document or powerpoint presentation.

SWOT Analysis: Examples

SWOT Analysis of Starbucks

Starbucks is an international coffeehouse business, and are considered as the best coffee makers.

Strengths:

• Culture of warmth and belonging
• Strong Market Position (operates in over 60 countries)
• Global Brand Recognition

Weaknesses:

• Products are expensive
• Difficult to maintain the growth rate
• Major dependency onUS market

Opportunities:

• Grow in emerging and other markets (outside the US)
• Expand Product Mix and Offerings
• Leverage technology such as mobile applications

Threats:

• Increase in competition
• Coffee beans cost could rise
• Economy downturn
• Change of customer preferences

SWOT Analysis of Apple

Strengths:

• Strong brand name
• Loyal customers
• Seen as a status symbol in some markets

Weaknesses:

• Expensive products
• Difficult to match expectations with new launches

Opportunities:

• Introduce new products (extension, diversification)

Threats:

• Increased competition – better and cheaper products available.
• Security concerns

SWOT Analysis of Amazon

Strengths:

• Strong brand name
• Strong customer focus
• Huge number of third-party sellers

Weaknesses:

• Uses low margin business model to gain market share in newer markets which dents its profitability.
• Business model can be imitated

Opportunities:

• Expand in other Geographical locations
• Introduce in-house brands such as Amazon basics

Threats:

• Government regulations
• Competition from other big retail players (such as Walmart)

SWOT Analysis of Amul

Strengths:

• Strong brand image
• Loyal customer base
• Strong Supply chain and Distribution Network

Weaknesses:

• Increasing cost of operations
• Other products (chocolates, milk powder, etc) not as popular as butter, cheese, paneer and milk.

Opportunities:

• Expand in other geographical locations.
• Introduce new products (product line extension).

Threats:

• Increased competition from local and global players in different product categories.

SWOT Analysis for Decathlon India

SWOT Analysis for Decathlon India

• Strengths: The company sells a large number of fitness and sports products covering various sports and disciplines. The company sells its products through large warehouse like stores provide unique experience. The company produces high quality products, people have low cost and high value perception about its products
• Weaknesses: High operational costs as it uses big stores. The company also does not use celebrities to endorse its products
• Opportunities: Markets such as India are growing, opportunities to expand in more cities. The company leverage e-commerce, social media to attract more people.
• Threats: There is increased competition from other sports equipment companies and retailers. High rentals for the stores, owning all parts of the supply chain can increase costs.

Academic Questions on this topic

Academic questions, assignments, case studies on this topic.

Conduct a SWOT Analysis of a particular company.

Here’s an example of a swot analysis for a sports management company that wants to organize an annual competition.

• Strengths: First mover advantage (assuming this is the first of its kind), team with experience and relevant skills
• Weaknesses: Challenge to get adequate funding in the initial years, no star players to pull the audience
• Opportunities: Can become a major sports competition in the country
• Threats: Similar competitions may come up in the future (and those people may have bigger pockets)

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