SWOT is an abbreviation for Strengths, Weaknesses, Opportunities and Threats. SWOT analysis is used for identifying those areas where an organization is strong, where it is weak, the major opportunities the company can explore and the threats. SWOT analysis is a useful tool for assessing the strategic position of a business and its environment. SWOT Analysis helps a company to know where it stands by exploring key issues:

Strengths:

  • What do we do well?
  • How are we better than our competitors?

Weaknesses:

  • What could be done better?
  • What is being done badly?

Opportunities:

  • What are the opportunities that can be exploited?
  • What are the interesting trends?

Threats:

  • What obstacles are being faced?
  • What is the competition doing?
  • Are the specifications for the products or services changing?
  • Is changing technology threatening our business?

SWOT Analysis Example

Sample SWOT Analysis for CONMED Corporation: (for illustration purposes only)

Strengths
  • Global Presence, International Sales approximated 29%, 33%, 35% in 2002, 2003 and 2004 respectively
  • Strong Manufacturing base
  • Clinicians and administrators desiring non-invasive procedures
  • New product introductions
  • Acquisition of key technology like ECOM
    		•
  • Certain products like surgical suction tubing and ECG electrodes are commodity products with little differentiation possible
  • Higher incremental costs in 2005 until manufacturing of the acquired products is integrated
    		•  Weaknesses
    Opportunities
  • Scope for new product or technology introductions
  • Current research focus on reflectance technology products which permits non-invasive analysis of blood oxygen levels in clinical situations
    		•
  • Continued cost containment pressures in highly competitive market
  • Change in regulatory environment
  • Patent Litigation risks
    		•

    Threats

    CONMED Corporation (CONMED) (NASDAQ: CNMD) develops and produces medical and surgical procedure instruments.