$3.$ Using SWOT Analysis to Gain Strategic Insight

Using SWOT Analysis to Gain Strategic Insight

When used effectively, a SWOT analysis can help the strategist deeply consider different strategic initiatives managers might take. The SWOT juxtaposes the firm$$s internal Strengths $($S$)$ and Weaknesses $($W$)$ identified through a rigorous internal analysis, such as the application of the VRIO framework, with the external Opportunities $($O$)$ and Threats $($T$)$ identified through a comprehensive external analysis, such as the application of industry analysis. This activity is important because it demonstrates how internal $($S$/$W$)$ and external $($O$/$T$)$ concepts are appropriately captured in the SWOT and how strategic initiatives managers might take can be created from the juxtaposition of these internal and the external concepts.

This activity is important because as a manager, you must be able to determine both the internal and external forces that are impacting your business. It helps a company leverage its internal strengths, exploit external opportunities, and mitigate internal weaknesses and external threats.

The goal of this exercise is to demonstrate your understanding of SWOT analysis by placing each strategic alternative in the appropriate classification section.

Review the relevant content in Chapter $4$ and then match each description of the internal or external conditions to the appropriate SWOT category.

Yeti was founded in $2006$ and grew to $$1\mathrm{.}5$ billion in revenue by $2022,$ generating $$215$ million in net income. From the discussion in Strategy Highlight $4\mathrm{.}1,$ we can create a SWOT analysis and use it to understand why Yeti has been so successful compared to other manufacturers of coolers like Coleman, Igloo, and Hydro Flask. The internal strengths and weaknesses for Yeti as well as the environmental threats and opportunities are taken from the chapter.

The SWOT analysis below is unfinished, and your task is to fill in the missing information. First, complete the company SWOT analysis by dragging each of the four conditions to the appropriate category in the outer cells $($Strength$,$ Weakness, Opportunity, or Threat$).$ Second, drag each of the possible strategic alternatives to the appropriate internal quadrant.

Group the strategic alternatives by the appropriate category of SWOT analysis. Move each label to the correct drop zone box.