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.