Implementation of SWOT Analysis

SWOT ANALYSIS
S SWOT is an acronym of Strength, Weaknesses, Opportunities and Threats. It is a tool for
the assessment of the above four aspect faced by the business. Using this tool can help in
achieving a very good knowledge of the competitors present in the market (Sammut‐Bonnici and
Galea, 2015). The chances of failure for the organization reduces using this assessment tool and
a better crafting of the strategies takes place (Shinno, et al., 2006).
Implementation of SWOT analysis
STRENGTHS WEAKNESSES
OPPORTUNITIES THREATS
SWOT
ANALYSIS

Step 1: The process of screening of the external and the internal environment.
It is very important to have a firm knowledge about the internal and external factors that
are prevailing in the environment. Using SWOT analysis will help us getting a current scenario
of the situation that may influence the performance of the business in the long-run.
Step 2: Analysis of the internal and external environment.
This analysis is done to understand the internal environment that is any strength or
weakness present in the organization and the external environment that is any threat and
opportunity present in the environment that may influence the performance of the organization.
Step 3: Construction of the matrix.
All the internal and external factors are now listed down using a matrix from the analysis
done above.step 1:
screening of the
internal as well
as the external
environment.
step 1:
screening of the
internal as well
as the external
environment.step 2: analysis
of the internal
and external
environment
step 2: analysis
of the internal
and external
environmentstep 3:
construction of
the SWOT
matrix
step 3:
construction of
the SWOT
matrixstep 4: defining
the SWOT
matrix
step 4: defining
the SWOT
matrixstep 5:
implementation
of the decision
taken
step 5:
implementation
of the decision
taken

Step 4: Defining the matrix.
After the construction comes the defining part which helps in understanding what future
directions will be expected out of these actions. We need to define the matrix by taking
combinations of strength-opportunity and weakness-threat.
Step 5: Decision-making
After all the steps and after analyzing come the decision making which will be
implemented in the organization and a final result will be obtained.
PORTER’S FIVE FORCES
This is a strategic tool used by organizations to have an analysis of the competitive
advantage of the organization in the market. This strategic tool helps the organization to
understand its weaknesses and strength within the organization (Grundy, 2006). It can be called
as a framework that is helpful for analyzing the competitive environment of the organization and
can also be used as a business strategy for increasing the competitive advantage of the
organization.

Implementation of Porter’s Five Forces
Step 1: understanding the threat of the new entrants
The organisation must look at this factor very seriously because most of the compaies are
effected more by the new players in the market. An industr having a very strong barrier to this
kind of entries will be ideal as the company that is existing can charge for more prices and
negotiate in a better way.
Step 2: Supplier’s power
This factor or step helps in determining the eae with which a supplier can drive or riise
up his input costs. This step must be carefully anaysed because a lot of suppliers may be present
for the same industry making the analysation complex.
Step 3: Customer’s power
Competiti
ve rivalry
bargaini
ng
power of
the
custome
rs
threat of
substitut
es
bargaini
ng
power of
the
suppliers
threat of
new
entrants