SWOT Strengths

SWOT Strengths is one of the key Internal SWOT factors. It is one of the four quadrant in the SWOT Analysis template. It is quite easy to identify strengths within your organization, business or even operation. As this is the internal factors, you should focus on those you really in control. Below are some examples:-

1. Financial independent with no borrowing
2. Widely spread distribution network all over the world
3. Many product model range from high end to low cost product
4. Knowledgeable and experienced senior workforce
5. Almost zero employee turnover
6. Readily available stork for immediate delivery
7. Benchmark Starbucks Practices

All the above a good example of strengths within your organization or operations. Without them, you are likely run into product backlog, late delivery to customer etc.

In a SWOT Strength; A Strength itself is not a Strength

You may not agree with me but think deep enough with some of the SWOT strengths listed above. It is indeed a strength by itself, h

owever, it is not really a strength when you relate that with your competitor. Take for an example of a typical SWOT Strengths:

“Financially independent ( No borrowing )”

This statement indicate that the organization is strong in financial and perhaps uses it own funding to run the business ended with no borrowing. Let examine this “strength” with an another perspective for the sake of discussion.

Assume that you have lots of fund generated from your profit. As such, you use the extra fund to pay off your creditor fast, and at the same time use case to make purchase maybe to an extend your do not have creditors. There are two points of view with this approach:-

1)   It is likely you do not invest further for the future because you do not borrow money. therefore, your growth in business is somewhat restricted.

2)  Since you used up your cash to make purchases, your do not have enough reserve (assume) for emergencies, crisis, or opportunity to buy cheap investment .

What is this SWOT Strengths got to do with the competitor?

Sure it does, you assume it is a strength as opposed to your competitor who do have borrowings,  but your competitor’s cash management is well ahead of you in terms of using the cash for reinvestment into business expansion, buying modern machinery. If your competitor

really use the borrowing for these purpose, they are well prepared than you to capture extra business when economy turn around.

Therefore, to examine the SWOT Strengths further, I your can turn around as reclassified the statement as ” not using extra cash for reinvestment” or “poor cash management” .  Once you have reclassified it, then it becomes a “Weakness”  .  See more example of SWOT Weaknesses to recognize some of the SWOT Strengths

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