Safe Trading Tips
SWOT and situation analysis
03/04/2008

Combining the external and internal analysis, results in the so-called SWOT analysis (strengths, weaknesses, opportunities, threats). In the SWOT, the most important strong and weak points of your company are put down next to important opportunities and threats in the market. List these points in order of importance.

Brief Strengths, Weaknesses, Opportunities and Threats analysis of a medium-sized Vietnamese manufacturer of vases who wants to export to France
Strengths: low production costs resulting in low prices, middle-sized company with relatively good financial background
Weaknesses: turnover too small compared to French manufacturers, lower quality materials used in production, absence of modern technologies in production Opportunities: popularity of non-branded vases, big market in France
Threats: unknown market, unknown legislation, strong price competition, exchange rate risk

The purpose of this analysis is, to clearly show the position of the company in the market. The essence of the SWOT analysis is to find a market segment where there is an opportunity that matches the strengths and where the threats have a minimal impact on the vulnerable side, the weaknesses of the company. In fact, by matching external opportunities and internal capabilities, the exporter should be able to identify suitable target countries, market segments and target product(s) within these countries. When you find out that your company has weaknesses, which prevent it making use of the opportunities found in the market, it is important to assess the extent of the weaknesses found and in turn look at the possibility of overcoming these weaknesses or even turning them into strengths. You should however take into account whether it is financially viable to make the required changes and the time span in which it is possible.

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