| Potential Internal
Strengths |
Potential Internal
Weaknesses |
 | Core competencies in key areas |
| Adequate financial resources |
| Well-thought-of by buyers |
| An acknowledged market leader |
| Well-conceived functional area strategies |
| Access to economies of scale |
| Insulated (at least somewhat) from strong competitive
pressures |
| Proprietary technology |
| Cost advantages |
| Better advertising campaigns |
| Product innovation skills |
| Proven management |
| Ahead on experience curve |
| Better manufacturing capability |
| Superior technological skills |
| Other |
|
| No clear strategic direction |
| Obsolete facilities |
| Subpart profitability because... |
| Lack of managerial depth and talent |
| Missing some key skills or competencies |
| Poor track record in implementing strategy |
| Plagued with internal operating problems |
| Falling behind in R&D |
| Too narrow a product line |
| Weak market image |
| Weak distribution network |
| Below-average marketing skills |
| Unable to finance needed changes in strategy |
| Higher overall unit costs relative to key competitors |
| Other |
|
| Potential External
Opportunities |
Potential External
Threats |
| Ability to serve additional customer groups or expand into
new markets or segments |
| Ways to expand product line to meet broader range of
customer needs |
| Ability to transfer skills or technological know-how to new
products or businesses |
| Integrating forward or backward |
| Falling trade barriers in attractive foreign markets |
| Complacency among rival firms |
| Ability to grow rapidly because of strong increases in
market demand |
| Emerging new technologies |
|
| Entry of lower-cost foreign competitors |
| Rising sales of substitute products |
| Slower market growth |
| Adverse shifts in foreign exchange rates and trade policies
of foreign governments |
| Costly regulatory requirements |
| Vulnerability to recession and business cycle |
| Growing bargaining power of customers or suppliers |
| Changing buyer needs and tastes |
| Adverse demographic changes |
| Other |
|
