SWOT Analysis

4. Opportunities

External changes provide opportunities that well-managed businesses can turn to their advantage.

4.1 Changes involving organisations and individuals which directly affect your business may open up completely new possibilities. For example:

• Deterioration in a competitor's performance, or the insolvency of a competitor.
• Improved access to potential new customers and markets (eg overseas).
• Increased sales to existing customers, or new leads gained through them.
• The development of new distribution channels (eg the Internet).
• Improved supply arrangements, such as just-in-time supply or outsourcing non-core activities.
• The opportunity to recruit a key employee from a competitor.
• The introduction of financial backers who are keen to fund expansion.

4.2 The broader business environment may shift in your favour. This may be caused by:

• Political, legislative or regulatory change.For example, a change in legislation that requires customers to purchase a product.
• Economic trends.For example, falling interest rates reducing the cost of capital.
• Social developments.For example, demographic changes or changing consumer requirements leading to an increase in demand for your products.
• New technology.For example, new materials, processes and information technology.