SWOT Matrix

Potential Internal STRENGTHS

• Core competencies in key areas
• An acknowledged market leader
• Well-conceived functional area strategies
• Proven management
• Cost advantages
• Better advertising campaigns

Potential Internal WEAKNESSES

• No clear strategic direction
• Obsolete facilities
• Subpar profitability
• Lack of managerial depth and talent
• Weak market image
• Too narrow a product line

Potential External OPPORTUNITIES

• Ability to serve additional customer groups
• Expand product lines
• Ability to transfer skills/technology to new products
• Falling trade barriers in attractive foreign markets
• Complacency among rival firms
• Ability to grow due to increases in market demand

Potential External THREATS

• Entry of lower-cost foreign competitors
• Rising sales of substitute products
• Slower market growth
• Costly regulatory requirements
• Vulnerability to recession and business cycles
• Changing buyer needs and tastes

Pg 216 - 7th edition - Understanding Business -  Nickels, McHugh, McHugh - McGraw-Hill Irwin. Edu.