Swot Analysis: Opportunities Example, Lists of Opportunities and Treat


Swot Analysis Opportunities Example, List of Opportunities and Treat

Overview of SWOT Analysis SWOT entails the objective analysis of a business’s Strengths and Weaknesses and its Opportunities and Threats. In order to identify its strengths, weaknesses, opportunities and threats, an organization has to carry out internal and external evaluation and also opportunities/threats analysis and strengths/weaknesses analysis.


The Internal Evaluation starts  

The identification of the profit contribution of each area, followed by allocation of resource, determination of risks involved, variety reduction, realistic allocation of costs and the assessment of company resources. External evaluation starts with the determination of market stranding, determination of competitors’ strengths and weaknesses, assessment of the vulnerability of the business’ main products to substitutes, assessment of the effects of economic changes on the business, inter firm comparisons and Stock Market Valuation in terms of an assessment of the company’s vulnerability to takeover.

Strengths/Weaknesses Analysis

This involves scanning the internal environment of the business in order to identify its strengths and weaknesses. The entrepreneur needs to evaluate the strengths and weaknesses of the business periodically.

Also, the entrepreneur can assess the internal environment of the business by critically looking at the internal factors in terms of the 5s, namely:

- Skills

- Strategy

- Staff


- Systems

- Shared Values

To do this effectively the entrepreneur needs to ask him/herself and answer questions pertaining to the 5s (five ‘s’) in terms of their strengths and weaknesses by developing questionnaires to ask questions pertaining to major internal environmental factors such as:

Skills: What skills do the organizational members possess? What are the distinctive competencies of the organization?

Strategy: Does your business have a clear vision and mission? Are your business objectives/goals derived from its mission? Does your business have plans? Do you follow the laid down plans of the business as scheduled? Does your business have clear strategies to operationalize its policies? What skills do the organizational members possess? What are the distinctive competencies of the organization?

Staff: Does the business have qualified staff for the relevant positions? Are the staffs rightly placed? Does the business have adequate number of personnel to man the various positions?

Structure: Does the business have an organizational structure or organogram? What type of organization structure does your business adopt? Are there clear lines of reporting and communication?

Systems: Does your organization have a system? What kind of systems (e.g. MIS, Accounting, Quality Control, and Inventory) does your business have in place? (Business Plan, 2010).

If the answers to these questions are positive/or the factors are present, then you record them as strengths and if the answers are negative/ the factors are absent, then you record them as weaknesses. After this, each factor is rated as to whether it is a major strength, minor strength, neutral factor, minor weakness, or major weakness (Business-Plan, 2010).


Opportunities and Threats Analysis

This involves scanning the external environment of the business in order to identify the Opportunities and Threats. The entrepreneur can assess the external environment of the business by critically looking at the opportunities and threats emanating from changes in the major external environmental factors. For instance opportunities in the technological environment could be availability of advanced technology, developments in Information Technology like the advent of the GSM; opportunities in the Political/Legal environment could be favourable government policies, tax holidays; opportunity in the Demographic environment could be great market demand; opportunities in the Economic environment could be growing export market increased consumer spending and growing industry.

Positive seasonal influences are an opportunity in the natural environment; opportunities in the other environment could be change in consumers taste in favour of your product and Intermediaries’ cooperation. Examples of threats in some external environmental factors can come from direct competitors, indirect competitors, consumers, substitute products or services and suppliers, customers brand switching and innovations by competitors.

The entrepreneur can classify the overall attractiveness of a business once he/she has conducted a thorough opportunities and threats analysis.

To this effect, threats could be classified according to their seriousness and probability of occurrence.

To evaluate its opportunities, the business needs to operate a reliable Management Information System (MIS). The information obtained will enable the entrepreneur know if the business is ideal (i.e. it is high in major opportunities and low in major threats); is speculative (i.e. it is high in both major opportunities and threats); mature business (i.e. it is low in major opportunities and threats) and troubled (i.e. it is low in opportunities and high in threats).

An effective opportunity and threat analysis is advantageous to the entrepreneur; it will enable the entrepreneur make decisions on whether the business should limit itself to those opportunities where it now possesses the required strengths or should consider better opportunities where it might have to acquire or develop certain strengths.

We looked at how the entrepreneur can analyze and scan the environment for entrepreneurial opportunities.

In doing this, the reductionist approach has been adopted. To this effect, an overview of the concept of business, environment, business environment, business environmental factors was discussed. The study session also discusses the SWOT (Strengths, Weaknesses, Opportunities and Threats) analysis and sees how this could assist the entrepreneur evaluate the attractiveness of a business. Apart from this the SWOT framework is beneficial for entrepreneurial decision making because it enables the entrepreneur respond to the dynamic business environment by enabling him consolidate on the strengths, overcome or turn weaknesses around, grab opportunities and avoid threats or even convert threats to opportunities.



In planning your business, apply the SWOT analysis. Look at your strength. This is what will keep you in the business so you must always look for ways to protect it. Do not neglect your weakness. This could kick you out of business. So you must identify ways of improving the identified weakness. Identify the external opportunities to strengthen your business and neglect treat. This is external. Although, there are so many other models that can be used in planning a business the SWOT is simple to use.


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