Font Size

Business SWOT Analysis - Threats is an Opportunity


Dr L M Foong

Business Articles
Submit Articles   Back to Articles

SWOT Analysis is an abbreviation for Strengths; Weaknesses; Opportunities and Threats. In the application of four factors of SWOT, proper understanding of the differences between them would bring about maximum benefits.

The Four SWOT Factors are also known as the Internal and External Factors. The Internal factors consist of Strengths and Weaknesses, whereas the External Factors consist of Opportunities and Threats.

In normal practice, the four SWOT factors can be clearly categorised based on the findings. Below are some examples:-


1. Strong financials
2. vast customer base
3. positive cash flow


1. long delivery lead time
2. high inventory
3. inconsistent quality


1. export incentives
2. acceptance of middle east countries
3. Good relations with trade ministry


1. escalating of cost
2. product substitition
3. computer virus attack by year 2000

As case study: Every Threats is an Opportunity ?

Every Threats is indeed an opportunity! Take for example: Before Y2K millennium, there was a global threat that the computer system may go burst on the 1st day of year 2000. This Threat was clearly beyond anyones' control, and it was inevitable. During that time, all organizations had 2 choices ie. Do something to overcome the computer threats or do nothing and wait for the worst to happen.

Most big and medium size organizations in Malaysia I contacted chosen to pay a high cost to work on an "enhanced" computer system that supposedly can overcome the computer threats. How did this Y2K threats taken as an opportunity? In fact, those organizations who did something to the computer system took the opportunity to upgrade or enhance their computer system to improve their inventory system while overcome the possible computer threats.

With this example of Threats, you can actually flip the Threats the other way round and turn it into an Opportunity.

About the Author

Dr. LM Foong, PhD writes and publishes TQM articles, ebooks, case studies, trainer manual and other TQM Related information made available at the Total Quality Management


Follow us @Scopulus_News

Article Published/Sorted/Amended on Scopulus 2010-03-08 09:23:44 in Business Articles

All Articles

Copyright © 2004-2021 Scopulus Limited. All rights reserved.