Categories
SWOT Analysis

SWOT MATRIX

Definition of SWOT MATRIX
A SWOT matrix is a popular tool used by businesses of all sizes to analyze their present market situations. SWOT is an acronym for Strengths, Weaknesses, Opportunities, and Threats—the four components of a SWOT matrix.

SWOT Matrix Tool
This tool provides a systematic approach to identifying strengths, weaknesses, opportunities and threats (SWOT) to assist the strategic planning process.
When you’re done formulating your SWOT list, don’t leave it on a flip chart or in some report never to be formally analyzed.  A lot of work goes into generating this list, and yet many organizations do not adequately address the findings. 
Information revealed in a SWOT analysis can be used to generate new/better strategies for your organization.  By using a SWOT Matrix, you are able to formally analyze and make your strengths, weaknesses, opportunities and threats, a key component of your strategy.
Instructions: Take your top three SWOT items and insert them in the appropriate box in this chart. Then, proceed to fill in the matrix. An example is provided to give you an indication of how valuable this tool can be.
For more information contact Jim Pealow at  (613) 839-0085 or jim@amces.com

STRATEGY / SWOT MATRIX EXAMPLE
Strengths
(S)
List strengths
Opportunities (O)
List opportunities
Weaknesses (W)
List weaknesses
Threats
(T)
List threats

Strengths – S

Weaknesses – W

SO   Strategies
Use strengths to take advantage of opportunities
1
2
3
Strong financial resources
1
2
3
Declining membership
WO Strategies
Overcome weaknesses by taking advantage of opportunities
ST Strategies
Use strengths to reduce threats
WT Strategies
Minimize weaknesses and redice threats

Opportunities – O

SO Strategies

WO Strategies
1
2
3
Pending legislation will increase activity for those in the associations market
1
2
3
Fund a Task Force to identify potential opportunities as a result of legislative changes.
1
2
3
Improve member products and services and invest in a marketing plan.

Threats – T

ST Strategies

WT Strategies
1
2
3
Former members are starting specialized associations.
1
2
3
Develop and deliver specialized services on a segmented basis as required.
1
2
3
Partner, compete or absorb the specialized associations.


STRATEGY / SWOT MATRIX WORKSHEET
Strengths
(S)
List strengths
Opportunities (O)
List opportunities
Weaknesses (W)
List weaknesses
Threats
(T)
List threats

Strengths – S

Weaknesses – W

SO   Strategies
Use strengths to take advantage of opportunities
1
2
3
1
2
3
WO Strategies
Overcome weaknesses by taking advantage of opportunities
ST Strategies
Use strengths to avoid threats
WT Strategies
Minimize weaknesses and avoid threats

Opportunities – O

SO Strategies

WO Strategies
1
2
3
1
2
3
1
2
3

Threats – T

ST Strategies

WT Strategies
1
2
3
1
2
3
1
2
3

Purpose
1. Completing a SWOT matrix is a key part of developing a successful marketing plan. A SWOT matrix enables business owners to see exactly where their companies are currently succeeding, where their competitors might have an edge, and how they can use current market conditions to their advantage.
Creating the Matrix
2. To perform a SWOT analysis on a business, create a box divided into four equal parts. Label the upper-left quadrant “Strengths”; the upper-right quadrant “Weaknesses”; the lower-left quadrant “Opportunities”; and the lower-right quadrant “Threats.” Fill in the quadrants with objective information on the business.
Strengths
3. What does your company currently do well? What advantages does it have over the competition?
Weaknesses
4. Where does the company have room to improve? What is the competition doing better?
Opportunities
5. Are there promising markets that your business is not currently pursuing? Are you making full use of your current resources?
Threats
6. What current market conditions are damaging, or could potentially damage, your business? Are there certain businesses that are particularly difficult to compete against?

SWOT MATRIX EXAMPLE

Here is an example of SWOT items mapped to an existing strategy. In this example you will see that of the eight SWOT items only four are not covered by the existing strategy. So, the strategy only needs to be altered to cover the remaining four items.

SWOT Element
Comment on Current Strategy
Gap or No Gap
Leveraging Strengths
Strong recognizable brands We always pursue territorial supply agreements with new suppliers
No
Innovative sales techniques Our sales training and data collection processes were improved last year
No
Successful relationship marketing Use of data to market is working well
No
Mitigating Weaknesses
Insufficient financial resource No strategy to resolve
Yes
Taking advantage of opportunities
Consider importing directly No strategy to do this yet
Yes
Increased customer life cycle Already catered for in relationship marketing program
No
Mitigating threats
Foreign exchange rate changes will impact imports No contingency plan in place
Yes
Rents increasing above CPI putting pressure on our margins No plan in place to change
Yes

The SWOT Matrix helps visualize the analysis. Also, when executing this analysis it is important to understand how these element work together. Your SWOT Matrix, ensure you get the most out of your SWOT analysis. Many people complete their strategic analysis by filling in their SWOT Matrix and move directly into action planning. You are about to discover the critical time saving step that they have missed.

Reference and Source:
whatmakesagoodleader.com/swot_matrix.html
ehow.com/facts_5514511_swot-matrix.html
amces.com/files/Strategy-SWOT%20Matrix%20Tool.doc