SWOT Analysis

2. Strengths

Your strengths are usually easy to identify, through your continuing dialogue with customers and suppliers. Your records (eg sales) will also help to indicate areas where you are particularly strong (eg rising sales for a particular product).

For most businesses, strengths will fall into four distinct categories.

2.1 Sound finances may give you advantages over your competitors.

Important factors might include:

• Positive cashflow.
• Growing turnover and profitability.
• Skilled financial management, good credit control and few bad debts.
• A strong balance sheet.
• Access to extensive credit, a strong credit rating, and a good relationship with the bank and other sources of finance.

2.2 Marketing may be the key to your success.

For example, your business may enjoy:

• Market leadership in a profitable niche.
• A good reputation and a strong brand name.
• An established customer base.
• A strong product range.
• Effective research and development, use of design and innovation.
• A skilled salesforce.
• Thorough after-sales service.
• Protected intellectual property (eg registered designs, patented products).

2.3 Management and personnel skills and systems may provide equally important underpinnings for success.

These may include factors such as:

• Management strength in depth.
• The ability to make quick decisions.
• Skilled employees, successful recruitment, and effective training and development.
• Good motivation and morale.
• Efficient administration.

2.4 Strengths in production may include the right premises and plant, and good sources of materials or sub-assemblies.

You may benefit from:

• Modern, low-cost production facilities.
• Spare production capacity.
• A good location.
• Effective purchasing and good relationships with suppliers.