SWOT Elements

S = Strengths (internal to the organization)
W = Weaknesses (internal to the organization)
O = Opportunities (external to the organization)
T = Threats (external to the organization)

Strengths and Weaknesses

Strengths and Weaknesses, as their names imply, are internal characteristics of an organization - things that your company does well or poorly. Think of your workplace or another organization. Can you name things that the firm does well? These are factors over which managers have complete control, so they are considered Internal Strengths.

Examples of Strengths:

Strong brand name or company reputation

Cost advantages over rivals

Product innovation capabilities

Good customer service capabilities
An internal strength can be considered a distinctive competence when the organization and only a few of their competitors possess that internal strength. When the strength is difficult to imitate by the organization's competitors then that distinctive competence creates a sustainable competitive advantage for the organization that possesses the distinctive competence. Therefore, distinctive competencies are of great value to an organization and one that organizations strive to possess and protect.

On the other hand, weaknesses are things that you don't do well. It is tough to conduct an honest account of weaknesses from inside an organization. Realistic assessment will probably be damaging to one department or another.

Examples of Weaknesses:

The organization has outdated product feature

Poor supplier relationships, an understaffed marketing department

High employee turnover

Low R&D expenditures compared to industry averages
Opportunities and Threats

Opportunities and Threats are external environmental forces that have an effect on an organization. They stem from the dimensions in the General