SWOT Analyzer V2.

1
Intellectual Arbitrage Group Brian K Seitz (c) 1/2/ 2006

The SWOT (Strength , Weakness, Opportunity, and Threats) Analyzer is a framework to think about your business Analyzer is also a calculator providing a means of evaluating the relative strength of you business.

Instructions: For each Tab use the dropdown (blue response column) to answer each question as per the scale. Once you score in the Baseline Tab and suggestions for improvement on in the Recommendations Tab. The revisit e the radar charts for common issues .

Develop an action plan to address deficiencies in you business model.

For Questions and updates contact: Brian K Seitz Intellectual Arbitrage Group bseitz@intelarbgrp.org or briankseitz@earthlink.net

hink about your business from a holistic perspective. The

n as per the scale. Once you have completed all four tabs revise ations Tab. The revisit each individual SWOT Tab and examine

Strength Rating

Competence Cost/Price 3 Competitive Skill Technical Skills Experience Curve 2 Management Product Development Marketing Effectiveness Proprietary Technology Competititve Pressure 1 0 Financial Resources Reputation Market Leadership Organizational Design Economies of Scale

Strength Rat

QID SQ-001-01 SQ-001-02 SQ-001-03 SQ-001-04 SQ-001-05 SQ-001-06 SQ-001-07

Question We have a high level of competence We have competitive skill We are ahead on the experience curve We have adequate finance resources We have a good reputation with buyers We are an acknowledged market leader We have well-conceived functional areas

Response Disagree Neither Agree Agree 0 0 Agree 0 0 Agree 0 0 Disagree 1 0 Neither Agree or Disagree 0 1 Neither Agree or Disagree 0 1 Neither Agree or Disagree 0 1

1 1 1 0 0 0 0

SQ-001-08 SQ-001-09 SQ-001-10 SQ-001-11 SQ-001-12 SQ-001-13 SQ-001-14 SQ-001-15

We have access to economies of scale We are somewhat insolated from strong competitive pressures We have proprietary technology We have better advertising campaigns than the competition We are good at creating new products We have strong management We have superior /technological/technical skills We have a cost/price advantage Total

Disagree Disagree Neither Agree or Disagree Neither Agree or Disagree Agree Neither Agree or Disagree Agree Neither Agree or Disagree

1 1 0 0 0 0 0 0 3

0 0 1 1 0 1 0 1 7

0 0 0 0 1 0 1 0 5

Strength Rating

Strength Rating Category 3 Competence 3 Competitive Skill 3 Experience Curve 1 Financial Resources 2 Reputation 2 Market Leadership 2 Organizational Design

SCALE Disagree Neither Agree or Disagree Agree

1 1 2 2 3 2 3 2 32

Economies of Scale Competititve Pressure Proprietary Technology Marketing Effectiveness Product Development Management Technical Skills Cost/Price

Weakness Rating

Profitability
Cost Structure

Financial Resources

Strategy 3 2.5 2 1.5 1 0.5 0

Facilities
Management

Key Competencies
Weakness Rating

Marketing Skills Market Image Product/Service Line R&D

Strategy Implementation Internal Operations

QID SQ-001-31 SQ-001-32 SQ-001-33 SQ-001-34 SQ-001-35 SQ-001-36 SQ-001-37

Question We have no clear strategic direction Our facilities are obsolete We are lacking managerial depth and talent We are missing key skills or competencies We have a poor track record in implementing strategy We are plagued with internal operating problems We are falling behind on Research & Development

Response Disagree Neither Agree Agree 0 0 Neither Agree or Disagree 0 1 Neither Agree or Disagree 0 1 Agree 0 0 Neither Agree or Disagree 0 1 Disagree 1 0 Disagree 1 0

1 0 0 1 0 0 0

SQ-001-38 SQ-001-39 SQ-001-40 SQ-001-41 SQ-001-42 SQ-001-43

We have a narrow product line We have a weak market image We have below average marketing skills We are unable to finance needed strategy changes We have higher overall costs relative to our key competitors We have subpar profitability Total

Agree Agree Disagree Agree Neither Agree or Disagree Neither Agree or Disagree

0 0 1 0 0 0 3

0 0 0 0 1 1 5

1 1 0 1 0 0 5

Weakness Rating

Weakness Rating Category 3 Strategy 2 Facilities 2 Management 3 Key Competencies 2 Strategy Implementation 1 Internal Operations 1 R&D

SCALE Disagree Neither Agree or Disagree Agree

3 3 1 3 2 2 28

Product/Service Line Market Image Marketing Skills Financial Resources Cost Structure Profitability

Opportunity Rating

Prospects 3
Regulatory Overhead 2 Markets

Market Growth

1 0

Product/Service Enhancement Product Line Expansion

Vertical Integration

Rival Complacency
Foreign Trade

QID SQ-001-34 SQ-001-35 SQ-001-36 SQ-001-37 SQ-001-38 SQ-001-39

Question There are additional customer groups that we could serve There are new markets or market segments to enter We can expand our products/service line to meet customer needs We can diversify into related products We can control sourcing or supply activities (vertical integration) Falling trade barriers are opening foreign markets to us

Response Disagree Neither Agree Yes 0 0 Yes 0 0 Yes 0 0 Maybe 0 1 Yes 0 0 Maybe 0 1

Opportunity Rating 1 1 1 0 1 0 3 3 3 2 3 2

SQ-001-40 Our rivals are becoming complacent SQ-001-41 The market is growing faster than in the past SQ-001-42 Fewer regulatory requirements will make doing business easier for us Total

Maybe Yes Maybe

0 0 0 0

1 0 1 4

0 1 0 5

2 3 2 23

Opportunity Rating

Category Prospects Markets Product/Service Enhancement Product Line Expansion Vertical Integration Foreign Trade

SCALE No Maybe Yes

Rival Complacency Market Growth Regulatory Overhead

Threat Rating

Foreign Competition 3 Technology Substitute Products 2.5 2 1.5 Entry Barriers Market Growth 1 0.5 0 Demographics Foreign Trade Environment

Market Requirements
Buyer/Supplier Power

Regulatory Overhead
Business Cycle/Climate

QID SQ-001-43 SQ-001-44 SQ-001-45

Question Low-cost foreign competitors are entering the market Sales of substitute product/services are rising The market is growing more slowly than we expected There are adverse shifts in foreign exchange rates and/or SQ-001-46 trade policies SQ-001-47 Regulatory requirements are becoming onerous

Response Disagree Neither Agree No 1 0 Maybe 0 1 Maybe 0 1 No No 1 1 0 0

Threat Rating 0 0 0 0 0 1 2 2 1 1

We are vulnerable to changes in the business cycle or to SQ-001-48 recessions Our customers and/or suppliers are enjoying growing SQ-001-49 bargaining power Buyer's needs and tastes are changing in directions that SQ-001-50 point away from our current expertise Demographic changes are having a negative impact on SQ-001-51 business SQ-001-52 It's easy to enter this industry (very low barriers to entry) Technology could change this industry with little or no SQ-001-53 warning Total

Yes Yes Maybe Maybe Yes Yes

0 0 0 0 0 0 3

0 0 1 1 0 0 4

1 1 0 0 1 1 4

3 3 2 2 3 3 23

Threat Rating

Category Foreign Competition Substitute Products Market Growth Foreign Trade Environment Regulatory Overhead

SCALE No Maybe Yes

Business Cycle/Climate Buyer/Supplier Power Market Requirements Demographics Entry Barriers Technology

Strategic Baseline

Total Strengths 40

30 20 10 Total Threats 0 Total Opportunities

SWOT

Total Weaknesses

Total Strengths Total Opportunities Total Weaknesses Total Threats

32 23 28 23

Total Strengths Total Opportunities Total Strenght and Opportunity

32 23 55

Total Weaknesses Total Threats Total Weaknesses and Threats

28 23 51

Strategic Baseline

Recommendations

Identify key factors effecting business reputation and develop a mitigation plan to address as well as exploit advantages Develop strategic & tactical plans to focus on becoming a market leader in one area and execute Analyze organizational/functional design for efficiency and effectiveness Develop strategies to create economies of scale for key product/service offerings Develop strategies to differentiate product/service, sales or distribution to create protected markets Determine if patent, copyright and trade secret intellectual property is, can and should developed Perform a Marketing Audit and Benchmark leading competitor to determine efficiency and effectiveness Develop and manage a formal ideation and innovation process Develop or acquire technical skills 0 0 0 0 0 0

0 0 0

0 0 0 0 0 0 0 0 0

0 0

Compensation Strategies Identify critical and core competencies needed for business and develop Reduce cycle time and increase learning to accelerate experience curve or acquire experience staff in key areas Develop financial strategies to acquire needed funding for operating capital and/or expansion Identify key factors effecting business reputation and develop a mitigation plan to address as well as exploit advantages Develop strategic & tactical plans to focus on becoming a market leader in one area and execute Analyze organizational/functional design for efficiency and effectiveness Develop strategies to create economies of scale for key product/service offerings Develop strategies to differentiate product/service, sales or distribution to create protected markets Determine if patent, copyright and trade secret intellectual property is, can and should developed Perform a Marketing Audit and Benchmark leading competitor to determine efficiency and effectiveness Develop and manage a formal ideation and innovation process Develop or acquire management skills Develop or acquire technical skills Develop strategies to improve economies of scale, profit margins and efficiencies