Internal SWOT analysis - Cotton Africa

SWOT, TOWS and PEST
analysis
Henning Høy Nygaard
Business Development Manager
Danish Federation of SMEs
1

The SWOT-analysis
The SWOT tool
A systematic and structured analysis with the purpose of:
• Identifying and analysing the strong and weak sides of
your company (internal analysis)
• Identifying and analysing the opportunities and threats
that surround your company (external analysis)
S The Strong sides of your company
W The Weak sides of your company
O The Opportunities outside the company
T The Threats outside the company

The SWOT-analysis The SWOT tool
THE INTERNAL ANALYSIS
STRENGTHS
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WEAKNESSES
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THE EXTERNAL ANALYSIS
OPPORTUNITIES
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WEAKNESSES
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The SWOT-analysis The SWOT tool
Strengths
Weaknesses
Opportunities
Threats
These are all those things you feel you do better than the competition.
They may be innovative product features, ways you deal with customers,
patents in place, or a particularly skilled staff.
These are the things the competition does better than you. They may
be processes you feel are inefficient, areas in which you feel exposed,
skills you don’t have, or product features that are falling behind.
These are the trends, changes, and characteristics of your market that
may offer opportunities for your business now or in the future. This may
include new legislation that allows you to move into a new market, or
makes your product even more attractive to customers.
These are all the changes, and trends associated with your market that
may present your business with problems either now or in the future.
This may include new legislation that forces you to make expensive
product changes, or even makes your product illegal.

SWOT: Strengths and The Weaknesses SWOT tool
Strengths and weaknesses are all about the
inside of your business, i.e. the internal
analysis. Internal analysis means thinking
about your strengths and weaknesses. They
must be relative to your competition. What
do you do better than them, where are you
weaker?

SWOT: Some areasThe with potential SWOT tool
Strengths or Weaknesses:
Company
Organization
System
Product
Production
Knowledge
Image/position, economy
Skills, training, attitudes, flexibility,
motivation, language
Communication (manual/computer, tele),
systematic/analytic
Quality, durability, price, service, costs, features,
research and development
Capacity, technical skills, automation, control
Technical, market, competitors

SWOT: Potential external The Opportunities SWOT tool
or Threats:
Opportunities and threats are about what
happens outside it, and make up your
external analysis. External analysis means
looking at changes in the market as a whole.
These changes present the opportunities and
threats to the future of your business

SWOT: Some areasThe with potential
SWOT tool
external Opportunities or Threats:
Market
Economy
Society
Competition
Competitors
Distribution
Legislation
Total growth, segment growth, niches,
criterias (price, quality, durability etc.)
Currency fluctuations
Attitudes
Leaving opportunities for newcomer?
Strong/weak, dominance, economy,
reaction patters, ambitions, objectives, 7 P´s
Coverage, number, service demands
Protection of environment/consumers, standards

The marketing mix
The SWOT tool
Use the marketing mix – have the 7P’s of the marketing
mix in the back of your mind when you are doing your
analysis.
People
your staff, customers and competitors
Product
what it is and why customers buy it
Place
how and where you sell
Price
how much you charge
Packaging how you present your products
Promotion how you promote your business
Physical evidence atmosphere/image of your business
and product

The PEST tool
The PEST tool
A SWOT analysis measures a business unit or proposition, whereas a
PEST analysis measures the market potential and situation, particularly
indicating growth or decline, and thereby market attractiveness, business
potential, and suitability of access.
The PEST subject should be a clear definition of the market being
addressed, which might be from any of the following standpoints:
• a company looking at its market
• a product looking at its market
• a brand in relation to its market
• a strategic option, such as entering a new market or launching a new
product
• a potential acquisition
• a potential partnership
• an investment opportunity

The PEST tool table
POLITICAL
•Ecological/environmental issues
•Current legislation home market
•Future legislation
•European/international legislation
•Regulatory bodies and processes
•Government policies
•Trading policies
•Funding, grants and initiatives
•Home market lobbying/pressure groups
The PEST tool
ECONOMIC
•Home economy situation
•Overseas economies and trends
•General taxation issues
•Taxation specific to product/services
•Seasonality/weather issues
•Market and trade cycles
•Specific industry factors
•Customer/end-user drivers
•International trade/monetary issues
SOCIAL
•Lifestyle trends
•Demographics
•Consumer attitudes and opinions
•Media views
•Law changes affecting social factors
•Brand, company, technology image
•Consumer buying patterns
•Major events and influences
•Advertising and publicity
TECHNOLOGICAL
•Competing technology development
•Associated/dependent technologies
•Replacement technology/solutions
•Maturity of technology
•Information and communications
•Technology legislation
•Innovation potential
•Technology access, licencing, patents
•Intellectual property issues

TOWS
TOWS TOOL
Internal relations
Strong areas (S)
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2.
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4.
Weak areas (W)
1.
2.
3.
4.
Opportunities (O)
1.
2.
3.
4.
(SO) Strategic Action
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2.
3.
(WO) Strategic Action
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3.
External relations
Treaths (T)
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2.
3.
4.
(ST) Strategic Action
1.
2.
3.
(WT) Strategic Action
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2.
3.