Question

In the SWAT analysis how is it involved ? And how is it done?

Answer 1

SWOT analysis identifies strengths, weaknesses, opportunities, and threats of a Company with relation to itself as well as to the outside world that influences the very survival of the business of a Company. While the first two elements of the SWOT helps in analyzing the internal aspects of the Company such as the Company’s own strengths and weaknesses while the next two elements look into the external aspect of the Company that is the outside stakeholders or circumstances that may have an influence over the business.

SWOT is important for strategic formulation in order to undertake the competitor analysis. Hence it provides strategic information to the Company in this regard. It helps in predicting the dynamics of competitor actions, responses and intentions. It further helps in analyzing the internal environment in terms of resources, capabilities and core competencies such that the strategies could be formulated based on these factors. The various strategic models such as Resource based model of AAR, the VRIO framework, the Value chain analysis, etc. could be all designed under the strategic formulation, based on the SWOT.

SWOT Analysis is undertaken by asking various questions to the Organization conducting the SWOT or to the underlying object on which the SWOT is to be conducted. These questions are carefully formed that can help an Organization gather important information regarding the Strengths, Weaknesses, Opportunities and Threats that the Organization is exposed to. For example, in order to identify the strengths, following questions could be possibly asked during a SWOT Analysis:

• What is the basic identity of the Organization?
• Any distinctiveness of the Organization in the manner it positions its sales in the market?
• What are the assets and resources of the Organization that the Organization can actually rely upon?
• In what way does the customers associate with the Organization’s Products and what do they appreciate the most about the Organization’s offerings in the market?
• How has the Organization been unique in a manner that makes the Organization stand out in the market?

In terms of Weaknesses, following questions are to be asked:

• What does stops the customers to associate themselves with the Organization’s Products and why do they not appreciate such offerings of the Organization that is made in the market?
• What is that the Organization cannot boast about and is termed to be inferior?
• Why can’t the Organization be at par with the competitors in the market?
• What kind of resources does the Organization not avail of but requires for survival and competition?
• Where shall the Organization focus the most, at least in the near-future?

In this way, by comprehending the answers for the above questions, an Organization can examine its inner competencies in detail.