SWOT analysis?

I have to perform a SWOT analysis on 7 countries a firm could potentially expand in to. I don't understand how to analyse a firms' strengths and weaknesses in a country it doesn't yet operate in. Am I supposed to perform the SWOT analysis on the country instead?

11 Answers

Relevance
  • 1 decade ago
    Favourite answer

    Strengths and Weaknesses are from WITHIN the company. You have to relate that back to the company itself and the market out there.

    Opportunities and Threats are from the outside world, whether its the competition, demands or markets.

    In your case, you must relate features of the country to the business ie if its an oil company then its more advantageous to start a business in a newly developed country without oil as a major resource

  • 1 decade ago

    From your question, I gather you are doing a SWOT analysis for a new market for the company to operate in, so the answer is NO!

    You should do a SWOT analysis for any new business - and just because a company is new does not stop it having strengths and weaknesses!

    You are trying to work out which market the company should enter. Obviously, some of these will be country related - what sort of market is it? Is bribery a common problem? Is the country stable? Is the currency stable? Will there be a language barrier?

    You will also look at the new market - how much competition is there? What will the demand for the company's products be? What is transportation like? What are labour demands like? Are you manufacturing or exporting? What tax duties will need to be paid? What are properties like?

    Basically, you are doing 7 'Newco' SWOT analyses - one for each country. Some of them will be country-related, but not all of them! Please realise a strength can also be a weakness, a strength can be an opportunity and so on.

    Good luck with your project - and do not hesitate to contact me if you want any more help!

    Source(s): I used to work in Corporate Finance and did too many SWOT analyses - it was always one of the first things we did before we decided to take on a client!
  • Anonymous
    1 decade ago

    The approach is to analyse the firms that already exist in the country; based on the performance of these firms you have an initial approach to your own. The analysis of the market and the specifics of the country are then integrated into the study to allow you to carry out the SWOT on your firm

  • Analyse the country in question and relate it back to the SWOT for the company, for instance....

    Strengths

    company is well establishes

    Demand for business exists in the country

    Multi lingual staff

    Weaknesses

    a company already doing similar in this country

    far out for communication

    Opportunities

    employ people from that country...increase work force making your company more welcome

    Threats

    Dangers of country

    Political issues

    These are just some examples of things you can use obviously your SWOT will depend upon a) the business in question and b) the country you are talking about...this will be very different for each country because of all conditions and restrictions in the country...hope this helps :)

  • What do you think of the answers? You can sign in to give your opinion on the answer.
  • Anonymous
    1 decade ago

    A SWOT Analysis is a strategic planning tool used to evaluate the Strengths, Weaknesses, Opportunities, and Threats involved in a project or in a business venture or in any other situation requiring a decision. The technique is credited to Albert Humphrey, who led a research project at Stanford University in the 1960s and '70s, using data from the Fortune 500 companies.

    Collect data from the MIS IN WHICH YOU HAVE TO Operate and use the following:

    1.How can we Use each Strength?

    2. How can we Stop each Weakness?

    3. How can we Exploit each Opportunity?

    4. How can we Defend against each Threat?

    Strengths

    What does the company do well?

    Is the company strong in its market?

    Does the company have a strong sense of purpose and the culture to support the purpose?

    Weaknesses

    What does the company do poorly?

    What problems could be avoided?

    Does the company have serious financial liabilities?

    Opportunities

    Are industry trends moving upward?

    Do new markets exist for the company’s products/ services?

    Are there new technologies that the company can exploit?

    Threats

    What are competitors doing well?

    What obstacles does the company face?

    Are there troubling changes in the company’s business environment (technologies, laws, and regulations)?

    The following case study demonstrates how SWOT can be used to create a strong business strategy.

    Case Study

    In the mid-1990s, Dell Computer used a SWOT analysis to create a strong business strategy that has helped it become a very strong competitor in its industry value chain. Dell identified its strengths in selling directly to customers and in designing its computers and other products to reduce manufacturing costs. It acknowledged the weakness of having no relationships with local computer dealers. Dell faced threats from competitors such as Compaq and IBM, both of which had much stronger brand names and reputations for quality at that time. Dell identified an opportunity by noting that its customers were becoming more knowledgeable about computers and could specify exactly what they wanted without having Dell salespersons answer questions or develop configurations for them. It also saw the internet as potential marketing tool. The results of dell’s SWOT analysis are:

    Strengths

    Sell directly to consumers

    Keep costs below competitors’ costs

    Weaknesses

    No strong relationships with computer retailers

    Opportunities

    Consumer desire for one-stop shopping

    Consumers know what they want to buy

    Internet could be a powerful marketing tool

    Threats

    Competitors have stronger brand names

    Competitors have strong relationships with computer retailers

    The strategy that Dell followed after doing the analysis took all for of the SWOT elements into consideration. Dell decided to offer customized computers built to order and sold over the phone, and eventually, over the internet. Dell’s strategy capitalized on its strengths and avoiding relying on a dealer network. The brand and quality threats posed by Compaq and IBM were lessoned by dell’s ability to deliver higher perceived quality because each computer was custom made for each buyer.

    There are lot of case studies on the web that will certainly helps you.

  • LYN W
    Lv 5
    1 decade ago

    Further to the excellent answers above you should consider an FMEA (Failure Mode Effects Analysis) as a support tool, a Fishbone Analysis (Ishikawa) using Manpower, Money,Materials and Merchandise as the basis of the diagram and to top it off a Gap Analysis to identify any service gaps that may occur. This will give you supporting evidence when a choice is made as to which country you may wish to choose.

    They sound complicated but they are not. In this scenario, where it is for academic purposes you will not have to go into intricate detail.

    You can obtain information on how these techniques can be used from any good Quality Assurance text book.

    Managing Quality by Barrie Dale is an excellent example.

    Have fun

    Source(s): MSc Strategic Quality Management, MIQA. MIAQP
  • Anonymous
    5 years ago

    When using SWOT Analysis for strategic planning we are identifying two internal factors (strengths and weaknesses) which are under organisation control and two external factors (opportunities and threats) outside of organisation control.

  • muppet
    Lv 4
    1 decade ago

    both, look at what the company does, and look at the country... for instance, a swimwear country looking at expanding into a muslim country would obviously have a large weakness etc... look at all the different types of strengths and weaknesses such as natural resources, labour force, political stability, economic prosperity etc... it also depends on what the company does and what it wants to do their, some countries on the offset look like poor entry sites, but on further investigation they're exactly where the company should be going..

  • 1 decade ago

    yes you can perform SWOT analysis- This helps you to focus on your strengths, minimize threats, and take the greatest possible advantage of opportunities available to you...moreover, its helpful to know the KRAs and KIs too.. then formulate your target objectives and action plans..

  • 1 decade ago

    You've started answering you own question. A weakness being you have no incountry presence. A strenght might be proven ability to penetrate other countries.

    opportunities and threats would come from the country and competitors.

Still have questions? Get answers by asking now.