Sunday, January 13, 2008


In corporate language, SWOT analysis is defined as the rational and overall evaluation of a company’s strengths, weaknesses, opportunities and threats which are likely to affect the strategic choices significantly. Albert S Humphrey was the father of SWOT analysis.

Every organization, or an individual or a country can go for this analysis periodically so as to meet its objectives and goals. Corporate planner or a strategist is involved in organization to conduct this analysis more effectively and efficiently. The person must be highly competent, motivated with a positive bent of mind without any prejudices or biases. He must be in a position to work harder under stress and strain and in a mature and cool manner so as to bring out the best results from this analysis.

As the term implies, strength means the positive side of a picture, weakness means inability to possess specific trait or quality. A threat is a challenge posed due to unfavorable trend or development till a defensive mechanism is created. An opportunity means the availability of various positive options for growth. Both strengths and weaknesses fall in internal environment and opportunities and threats fall in external environment. It is relatively easy to predict the internal environment while it is difficult to anticipate external environment. Visionaries always identify opportunities from threats as the saying goes ‘An optimist looks for opportunity in the difficulties while a pessimist sees difficulty in the opportunities’. For instance, late Dhirubhai H Ambani was a great visionary as he converted weaknesses into strengths and intelligently identified opportunities from threats in the era of controlled economy and built the Reliance Empire within a span of three decades.

SWOT Analysis of a Small Scale Industry:

Let us take the case of Baba Indian Water Industries, a low profile company run by CEO, Mr.Sura Hara Prasad which is located at Nemli in the district of Nizamabad of Andhra Pradesh dealing with the manufacturing and marketing of cleaning liquids.

The strength of this company is its strong presence in many districts of Telangana region in AP with strong marketing network created by way of good relations, strong financial background and highly motivated and dedicated workforce.

The weakness is that, it is not able to expand further to other regions of AP due to technical problems.

The opportunities are that, this particular segment has wider scope as consumers are conscious of health and hygiene factors due to growing literacy and affordability due to raising disposable income levels. The company can gradually look at exports as an alternative option as its products are highly qualitative.

The threats are that, being an SSI it is finding a great difficulty in standing up against stiff competition from big brands in this segment. And being a fast growing company, the unknown companies can go for duplicacy of these products and bring disrepute.

SWOT Analysis of an Engg. Student:

Let us look at the SWOT analysis of a fresh Engg. Graduate. The qualification itself becomes a great strength. Achievement in the academic career from primary level can be listed chronologically and also any extra curricular actives like NCC, NSS, and sports. If any prizes won in any college events either at the regional level or at the national level can be stated. Knowledge of any foreign language can be considered as a plus point because if the prospective employer has an office in that specific country, the candidate can be posted there for better communication and for better results. Publication of national conference paper on a specific subject can come in handy. If the candidate worked on part time and gained experience while being simultaneously involved in academic level will prove to be highly beneficial and the organizations expect experience in many cases. And if any part time courses or training, if the person had undergone along with his regular degree, can also become a great asset.

When listing out the weaknesses, the candidate has to be tactful and also to be honest as incorrect evaluation will prove to be counter productive. Since the graduate has passed out freshly, lack of experience is a major weakness. Now-a-days, majority of the candidates do not posses soft skills despite being strong at hard skills. A few people may not like to go on posting to specific places and it can become a major weakness. The candidate must list out honestly if any weaknesses in his academic career. Or else, the organizations are intelligent enough to find out the weaknesses thus resulting in termination of employment.

Now-a-days, the opportunities are plenty due to fast growing Indian economy. Many multinational companies are setting up offices and manufacturing units in India thus generating employment opportunities. Besides India is very strong at Information Technology and leading in many other sectors. An average graduate can get employment very easily if he slogs hard. Companies are offering many facilities apart from regular pay and perks. The candidates even after getting placement can go for higher qualifications, courses and find ample opportunities all around and can improve financially, mentally and intellectually. Job fairs are conducted frequently in various locations in India with walk-in-interviews with their resumes and get placements instantly. The candidates who are replete with stuff and stamina need not to fear for placement and, on the other hand, get many options to pursue career of his taste and temperament. They must note that getting placement is only a comma not a full stop because they must acquire many more qualifications, skills, abilities and experience till their end and that must become their full stop.

At times, it so happens, the candidates may not get right placement and it is worthwhile to pursue a less profile career so as to gain experience which may serve as a launching pad for better prospects elsewhere in their next move.

This is the age of perform or perishes. One who does not perform well or does not get adjusted well, will be served with pink slips and that becomes a major threat. If the candidate joined in the organization as proper openings were not available and if that company is not doing well, then sticking on to it can become a threat. It may also happen that the company may not find the right person for the right slot and if it subsequently finds a better and more suitable person, and then also there is a possibility of the existing staff being fired.

Likewise candidates must resort to honest evaluation of their strengths, weaknesses, opportunities and threats vis-à-vis their career and must proceed with confidence and optimism. Lot of home work needs to be done before applying for post; otherwise, it will be like a round peg in a square hole or like a square peg in a round hole.

To conclude, one must reinforce ones strengths, overcome ones weaknesses, manage ones threats effectively and must explore the available opportunities upto the hilt assuming that once the opportunity is lost, it is lost forever.



marion said...

I recently came across your blog and have been reading along. I thought I would leave my first comment. I don't know what to say except that I have enjoyed reading. Nice blog. I will keep visiting this blog very often.



deepak said...

nice blog

deepak said...

nice one

sayali said...

very nice blog...... It helps a lot

vijayakrishna guggilam said...

very nice and informative