SWOT ANALYSIS: USED OR ABUSED? Key Words Strength, Weakness, Opportunity, Threats, Strategic Analysis, Strategy, Dell, GE, TI Abstract This paper attempts to discuss the theoretical SWOT analysis including its functions and purposes. Moreover, the study try to find out the advantages and disadvantages of the SWOT analysis by taking past studies and actual examples in the real business world, then evaluates and examines the practicability of the SWOT analysis Introduction The SWOT analysis has been developed since 1960s and been commonly used in business for strategic analysis. However, with the commercial environment being changing dramatically, the practicability of the SWOT analysis has been a controversial issue in both academic and business areas. Therefore, this paper is going to discuss the advantages and disadvantages of the SWOT analysis and aims to examine its practicability.
What is SWOT analysis? As William R. Osgood had defined that SWOT analysis is the process of carefully inspecting the business and its environment through the various dimensions of Strengths, Weaknesses, Opportunities, and Threats.
ÃÂ¡ÃÂ§It is a way to analyse a companyÃÂ¡ÃÂ¦s or a departmentÃÂ¡ÃÂ¦s position in the market in relation to its competitorsÃÂ¡ÃÂ¨ (Stacy Collett, 1999) Strengths are skills and resources that the firm has more abundantly than other firms. They can be classified according to their value to the business and firmÃÂ¡ÃÂ¦s ability to exploit. On the contrary, weaknesses represent a lack of important skills or competencies relative to the presence of those resources in competing firms. They should be classified according to their risk to the business and firmÃÂ¡ÃÂ¦s ability to address.
Opportunities are outside conditions or circumstances that the company could turn to its advantage, and could include a specialty niche skill or technology that suddenly realizes a growth in broad market interest. Opportunities can be classified according to their success probability...