SWOT Engineering Analysis

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SWOT ANALYSIS

SWOT analysis is a structured planning method used to evaluate


the Strengths, Weaknesses, Opportunities, and Threats involved
in a project or in a business.
S: STRENGTH
W: WEAKNESS
O: OPPORTUNITY
T: THREATS
Environmental factors internal to the firm usually can be
classified as strengths (S) or weaknesses (W), and those
external to the firm can be classified as opportunities (O) or
threats (T). Such an analysis of the strategic environment is
referred to as a SWOT analysis
The SWOT analysis provides information that is helpful in
matching the firm's resources and capabilities to the
competitive environment in which it operates.

Strengths :
A firm's strengths are its resources and capabilities that
can be used as a basis for developing a competitive
advantage. Examples of such
strengths include:
patents
strong brand names
good reputation among customers
cost advantages from proprietary knowhow
exclusive access to high grade natural resources
favorable access to distribution networks

Weaknesses :
The absence of certain strengths may be viewed as a
weakness.
For example, each of the following may be considered
weaknesses:
lack of patent protection
a weak brand name
poor reputation among customers
high cost structure
lack of access to the best natural resources
lack of access to key distribution channels

Opportunities
The external environmental analysis may reveal certain
new opportunities for profit and growth.
Some examples of such opportunities include:
an unfulfilled customer need
arrival of new technologies
loosening of regulations
removal of international trade barriers

Threats :
Changes in the external environmental also may present
threats to the firm.
Some examples of such threats include:
shifts in consumer tastes away from the firm's products
emergence of substitute products
new regulations
increased trade barriers

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