Strengths (S) in SWOT refer to where the company does better than its competitors, or where it has some exclusive and effective resources. The advantages that usually have a more important impact on the company include the following aspects:
Cost
Market share
Customer relationship
Brand influence
Industry experience
Business model
Business philosophy
Management mechanism
Management level
Corporate culture
Response speed
Technical strength
Information intelligence
Professional talents
Government relations
Financial resources
Media resources
Origin advantage
Tangible assets and other monopoly resources
If in a certain industry, one of the above factors is very critical, and your company is weaker than its competitors in this key factor, then this aspect is your company’s disadvantage.
Opportunities that companies often encounter include:
Cost reduction brought about by new technologies
Quality upgrades caused by new technologies
Product revolution caused by new materials
Marketing progress brought about by new media
New markets
Fast-growing markets
New customer demands
Newly acquired monopoly resources
Strategic cooperation with other companies
New national policies
Changes in competitors
The threats that companies often encounter are external changes that may have a negative impact on their sales expansion and profit increase, and threaten their existing market position and profit acquisition. These changes include:
Economic downturn
Decrease in market demand
New competitors
Vicious competition from competitors
Increasing market position of customers or suppliers
Shortage of natural resources
Expiration of patent protection
Challenges from new technologies and new products
Drain of important talents
More stringent policies and regulations
Financial risks
War