SWOT is a method (plan) that is used to measure the strengths, weaknesses, opportunities and threats of any organization or business. We look at different factors and what categories they fall under in a matrix. The SWOT matrix is grouped by primarily two factors: Internal or External (There is another minor grouping of Negative and Positive)
Internal factors: These are factors that the organization can control. These include the strength and weaknesses. The organization can look at their strengths and weaknesses and manipulate them as to benefit the company. Some examples of these are:
- Physical resources: buildings and equipments, people (staff, target population etc)
- Finances: (funding and sources of income)
- Processes that happens within the company: Systems and employments
- Manufacturing powers
- Marketing decisions
External Factors: These are factors that the organization cannot control. These include the threats and opportunities. The organization can look at threats and prepare them to avoid hurdles or mitigate problems. They can also find opportunities in order to benefit from them. Some examples of these are:
- Trends and shifting culture in the community
- The economy
- Funding resources
- Government and laws
- Events in the community and the world that may affect the organization
- Environment (location, weather etc)
- Demographic
Where can SWOT be used?
- New solutions to problems
- Way to communicate with members
- To summarize systems and processes as an evaluation
- What to change the direction of companies
- Identify threats and barriers
- Focus and enhance strengthens and opportunities
TOWS
TOWS analysis originates from the SWOT analysis with the same acronyms of Threats, Opportunities, Weaknesses and Strengths. However, unlike SWOT analysis, TOWS shows us the interrelation between these different factors and helps us generate solutions and other paths to take for the organization. TOWS matches internal and external factors and forms strategies for the organization to use. It can help the organization take advantage of opportunities, minimize threats, tame weaknesses and exploit strengths.
Strength/Opportunity (SO) - This is where we have the greatest potential where we can use out strengths to exploit opportunities. Ex: Using great brand recognition as opportunity to launch a new product
Weakness/Opportunity (WO)- Taking advantage of opportunities in order to minimize weaknesses Ex: Outsourcing jobs to increase staffing
Strength/Threat (ST) - Using strengths to reduce threats Ex: Investing vast amounts of resources in an emerging(soon to be successful) market
Weakness/Threat (WT)- This is the most detrimental case to the organization, Here we use our planning to reduce risks and threats by minimizing weaknesses and preparing for problems before hand. Here we mitigate any weakness to avoid potential threats. Ex: Withdrawing from a failing product from a competitive market to avoid loss
