1. Nigel Trodd Coventry University
SWOT Analysis
Nigel Trodd
Coventry University

2. What is SWOT analysis?
Developed as a tool for marketing in which internal and external environment are scanned as an important part of the strategic planning process.
Internal factors can be classified as strengths (S) or weaknesses (W).
External factors can be classified as opportunities (O) or threats (T).
Strengths and Weaknesses of the internal environment e.g. staff (or internal customers), office technology, wages and finance, etc.
Opportunities or Threats from the external micro-environment e.g. clients, agents and distributors, suppliers, our competitors, etc. and macro-environment e.g. trends in Political, Economic, Social, Technological, Legal and Environmental factors (PESTLE).

3. Why use SWOT tools? SWOT is a structured analytical framework.
SWOT can be used in conjunction with other tools for audit and analysis e.g. PESTLE analysis, Porter's Five-Forces analysis.
SWOT helps to focus on areas of strength, recognise limitations and develop opportunities in the most promising directions.
SWOT is used widely because it is quick and easy to learn.
You can apply SWOT analysis to competing techniques. This may produce some interesting insights!

4. Strengths
Resources and capabilities that can be used as a basis for developing a competitive advantage.
Characteristics that can be controlled.
Consider this from the technologists point of view and from the point of view of the people who will use the data.
Don't be modest. Be realistic. If you are having any difficulty with this, try writing down a list of the characteristics of Earth observation missions and data products. Some of these will hopefully be strengths!
Remember that not all strengths offer an advantage over competing techniques. For example, if all techniques generate global products then although a strength it is not an advantage.

5. Weaknesses
In some cases, a weakness may be the flip side of a strength.
Take the case of a state-of-the-art digital technology that requires a large capital investment. While automated technology may be considered a strength that other technologies do not share, it also may be a considered a weakness if the large investment limits the financial resources available for training the specialists required to use the equipment or distribute the data.

6. Opportunities
Analysing the external environment may reveal certain new opportunities and emerging applications.
What are the interesting trends you are aware of? Useful opportunities can come from such things as:
Developments in science and technology.
Changes in markets on both a national and international scale.
Changes in government policy e.g. removal of international trade barriers, signing Kyoto agreement, homeland security and the fight against terrorism.
Changes in social patterns, population profiles, lifestyle changes, etc.
Mergers, joint ventures or strategic alliances based on geopolitical and public-private partnerships.
Non-investment or other reason leading to a market being vacated by a competitor technology.
An unfulfilled customer need e.g. a specific data requirements or data required for a particular geographical area.
Opportunities to add value and increase profit margin e.g. new business models for the knowledge economy and information society.
A later stage in SWOT analysis is to look at the strengths and ask whether these open up any opportunities. Alternatively, look at weaknesses and ask whether you could open up opportunities by eliminating them.

7. Threats
Changes in the external environmental may also present threats.
Some examples of such threats include:
Changing demand.
Emergence of new technologies or innovative products and services.
New regulations or increased trade barriers e.g. environmental lobby seeks a ban on launching spacecraft.
Government subsidies for competing technologies or disadvantageous taxation e.g. gaseous emissions.
Competing technologies that blend better with societal and technological trends.
Changing specifications for products and services.
Economic sustainability.
Could a non-technical weaknesses seriously undermine the technology?

8. Example
A start-up small consultancy business might carry out the following SWOT analysis:
Strengths:
We are able to respond very quickly as we have no red tape, no need for higher management approval, etc.
We are able to give really good customer care, as the current small amount of work means we have plenty of time to devote to customers
Our lead consultant has strong reputation within the market
We can change direction quickly if we find that our marketing is not working
We have little overhead, so can offer good value to customers
Examples of strengths include:
patents
strong brand names
good reputation among customers
cost advantages from proprietary know-how
exclusive access to high grade natural resources
favorable access to distribution networks
your specialist marketing expertise.
a new, innovative product or service
location of your business
quality processes and procedures
any other aspects that add value to the product or service e.g. digital workflow and data distribution.
Weaknesses:
Our company has no market presence or reputation
We have a small staff with a shallow skills base in many areas
We are vulnerable to vital staff being sick, leaving, etc.
Our cash flow will be unreliable in the early stages
For example, each of the following may be considered weaknesses:
lack of patent protection
a weak brand name
poor reputation among customers
high cost structure
lack of access to the best natural resources
lack of access to key distribution channels
lack of marketing expertise
undifferentiated products and service (i.e. in relation to your competitors)
poor quality goods or services
damaged reputation
Opportunities:
Our business sector is expanding, with many future opportunities for success
Our local council wants to encourage local businesses with work where possible
Our competitors may be slow to adopt new technologies
Threats:
Will developments in technology change this market beyond our ability to adapt?
A small change in focus of a large competitor might wipe out any market position we achieve
The consultancy might therefore decide to specialize in rapid response, good value services to local businesses. Marketing would be in selected local publications, to get the greatest possible market presence for a set advertising budget. The consultancy should keep up-to-date with changes in technology where possible.

9. Successful SWOT analysis
A word of caution, SWOT analysis can be very subjective. Do not rely on it too much. Two people or two applications rarely come-up with the same final version of SWOT.
Be realistic about the strengths and weaknesses.
Analysis of case studies should distinguish between state of the art of technology and potential or unproven technologies.
Be specific. Avoid grey areas.
Highlight distinctive characteristics that differentiate between techniques.
Keep your SWOT analysis short and simple. Avoid complexity and over analysis.
Remember. SWOT is subjective.
At some unspecified date in the future your employer – or one of its’ clients – may ask you whether it is worth investing several GBP million in using Earth observation by remote sensing.

10. Strengths
Non-intrusive
Complete coverage
Weaknesses
Start-up costs
Surrogate measurements
Opportunities
Archives
Data integration
Threats
Specialist knowledge & skills

11. Taking it further: the SWOT Matrix
A firm should not necessarily pursue the more lucrative opportunities. Rather, it may have a better chance at developing a competitive advantage by identifying a fit between the firm's strengths and upcoming opportunities. In some cases, the firm can overcome a weakness in order to prepare itself to pursue a compelling opportunity.
To develop strategies that take into account the SWOT profile, a matrix of these factors can be constructed. The SWOT matrix (also known as a TOWS Matrix) is shown below:
S-O strategies pursue opportunities that are a good fit to the companies strengths.
W-O strategies overcome weaknesses to pursue opportunities.
S-T strategies identify ways that the firm can use its strengths to reduce its vulnerability to external threats.
W-T strategies establish a defensive plan to prevent the firm's weaknesses from making it highly susceptible to external threats.

12. SWOT: RS for Earth obs. So use SWOT to…
Earth observation by remote sensing
… one technique of many
So use SWOT to…
better understand how remote sensing benefits EO applications
We can apply SWOT analysis, to
identify current status &
target investment in research and development