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Abstract
The main objective of this paper is to give an extensive knowledge on SWOT Analysis. In this
paper SWOT analysis is discussed in the case of project management. SWOT analysis stands
for Strengths, Weaknesses, Opportunities, and Threats. Such analysis can be a part in
a project or in a business venture. A SWOT analysis can be carried out for a product, place or
person. It involves specifying the objective of the business venture or project and identifying the
internal and external factors that are favorable and unfavorable to achieving that objective. The
technique is credited to Albert Humphrey, who led a convention at the Stanford Research
Institute now called SRI International, in the 1960s and 1970s using data from Fortune
500 companies. Performing SWOT analysis allows setting achievable goals or objectives for the
organization. SWOT analysis is important for organizations to plan future steps that are to be
taken for development or to compete with other companies. Through SWOT analysis, a company
or organization come across advantages, disadvantages, possibilities, capabilities and problems
that they may face in a project takes visual. In this paper different sectors are considered where
SWOT analysis is done successfully. Some other techniques of analysis such as Benchmarking,
PESTLE, M.O.S.T Analysis etc. are also discussed in brief in comparison to SWOT analysis.
Table of Contents
Page
Abstract ............................................................................................................................................ i
Chapter 1: Introduction to S.W.O.T Analysis................................................................................. 3
1.1 Definition .............................................................................................................................. 3
1.2 Background ........................................................................................................................... 3
1.3 Significance........................................................................................................................... 3
1.4 Objectives ............................................................................................................................. 4
Chapter 2: Steps to S.W.O.T Analysis ............................................................................................ 5
2.1 Performing S.W.O.T ............................................................................................................. 5
2.2 Applications of S.W.O.T ...................................................................................................... 6
Chapter 3: Comparison between S.W.O.T and Other Analysis ...................................................... 7
3.1 Types ..................................................................................................................................... 7
3.2 PESTLE and S.W.O.T .......................................................................................................... 7
3.3 Benchmarking and S.W.O.T ................................................................................................. 8
3.4 M.O.S.T and S.W.O.T .......................................................................................................... 8
Chapter 4: S.W.O.T analysis in Construction Sectors .................................................................... 9
4.1 Why S.W.O.T for Industrial Sectors ..................................................................................... 9
4.2 Performing S.W.O.T Analysis for an Construction Industry................................................ 9
Chapter 5: S.W.O.T in Industrial Sectors ..................................................................................... 13
Chapter 6: S.W.O.T in Communications Sectors ......................................................................... 17
Conclusion .................................................................................................................................... 18
References ..................................................................................................................................... 19
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S.W.O.T Analysis in Project Management
Md. Mashreki Islam Sami
and Threats. Strength can be a competitive advantage to a company through superior product
quality, lowest price, best expertise, location.
However, weakness can be a disadvantage for a company for example, tired brand, inferior
location, high overheads or lack of R&D. Considering opportunities a company can have, e.g. A
regulatory or tax change, high-profile event (marketing opportunity), untapped market, gap left
by a failed competitor etc. The last thing a company does not want is threat which for example
can be briefed as unfavourable regulation changes, new entrant into the market, Problems with
the economy, Market shrinkage etc.[4]
1.4 Objectives
In this paper we are going to discuss the different sectors of business and communication
industries where S.W.O.T analysis is used. Through S.W.O.T analysis, which is one of the main
ways of differentiating between companies or products, an industry can emerge to the top of its
business. We are going to discuss the ways S.W.O.T analysis is done for industries such as,
cement or construction; communication sector for example Vodafone an Facebook; or may be
S.W.O.T between banks etc. Apart from differentiating between companies, this paper will also
focus on the other different types of analysis that are done and their effectiveness.
Contemporarily, there are few methods for analyzing, such as Portfolio method, Growth-Share
Matrix, PESTLE, Benchmarking etc.
For managing a project, many organizations use number of other methods alongside of S.W.O.T
to get a better view of the strategic planning. These other methods are sometimes used to support
the evaluation result of S.W.O.T. In every project it is very important to perform a S.W.O.T
analysis at the initial stage. Performing this analysis gives the Project Manager and team member
a clear idea of the objective that is likely to be fully identifying all required activities and
potential risks so that a proper plan can be put in place. However, if it is being conducted during
an ongoing project, the objective may be to re-assess the budget or schedule.
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S.W.O.T Analysis in Project Management
Md. Mashreki Islam Sami
Weaknesses
Advantages of proposition?
Disadvantages of proposition?
Capabilities?
Gaps in capabilities?
Competitive advantages?
Financials?
Accreditations, Certifications?
Opportunities
Threats
Market developments?
Competitors' vulnerabilities?
Legislative effects?
Environmental effects?
Global influences?
Obstacles faced?
Insurmountable weaknesses?
Employment market?
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S.W.O.T Analysis in Project Management
Md. Mashreki Islam Sami
The above questions are few of the many questions that are frequently asked by during analyzing
between two or more companies. There are questions that can reveal important details of a
company such as, Superior product performance vs. competitors or how vulnerable to reactive
attack by major competitors etc.
2.2 Applications of S.W.O.T
S.W.O.T analysis is so powerful that it has many applications. Some of the applications can be
listed down as shown[5]:
a product or brand
a potential partnership
an investment opportunity
Whatever the application, description of the subject or purpose or question for the SWOT
analysis should be clear so that one remain focused on the central issue. This is especially crucial
when others are involved in the process. People contributing to the analysis and seeing the
finished SWOT analysis must be able to understand properly the purpose of the SWOT
assessment and the implications arising.
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S.W.O.T Analysis in Project Management
Md. Mashreki Islam Sami
Political: The political situation of the country and its effect in the industry
Social: How much importance does culture has in the market and its determinants
Legal: Legislations that regulate the industry or any change in the legislations for the
industry
It may be so, that the importance of each of the factors may be different to different kinds of
industries, but it is imperative to any strategy a company wants to develop that they conduct the
PESTLE analysis as it forms a much more comprehensive version of the SWOT analysis.[6]
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S.W.O.T Analysis in Project Management
Md. Mashreki Islam Sami
Similar to SWOT analysis, Benchmarking can be internal or external. However, within these
broader categories, there are three specific types of benchmarking: 1) Process benchmarking, 2)
Performance benchmarking and 3) strategic benchmarking.[7]
3.4 M.O.S.T and S.W.O.T
M.O.S.T is a superior strategic planning tool helps to clarify Mission - where the business
intends to go, Objectives - the key goals which will help to achieve that mission, Strategy analyses what options there are for proceeding forward and Tactics - how these strategies are
going to be put into action.[8] Comparing with S.W.O.T, we find that M.O.S.T is a sort of
visionary planning, where and how a company can reach their aim completing their goals.
However in S.W.O.T, how a product or project can fulfill ones need comparing other product or
projects can be analyzed.
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S.W.O.T Analysis in Project Management
Md. Mashreki Islam Sami
Fragmentation of domestic markets with many contractors competing for market share.
The international market for civil engineering is mainly in the newly industrializing countries
of South East Asia (including China), South America, the Middle East and Eastern Europe.
Importance of privately financed projects in both the main domestic markets and the
international markets
Clients demand in procure projects due to the effects of infrastructure privatization and the
introduction of the Private Finance Initiative.
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S.W.O.T Analysis in Project Management
Md. Mashreki Islam Sami
The traditional procurement method for civil engineering contracts in the UK has been
design-bid-build.
The UK construction industry is beginning to speak with one voice across a range of issues.
The subsequent establishment of the Construction Industry Board.
The largest UK civil engineering contractors by turnover are Tarmac and Balfour Beatty at
13th and 14th in Europe, France has the four largest, Germany three in the top ten and Italy
two in the top ten.
With more and more work being financed privately the leading UK civil engineering
companies may not have the financial strength to compete against their bigger European
rivals.
The level of education in the UK construction industry is lower than that in its European
rivals.
The level of research and development expenditure by the UK construction industry is lower
than some of its international rivals, in particular Japan and the US and very much lower than
other industries.
Weakness of UK civil engineering is that contractors have a reputation for bidding prices that
are below cost in order to gain work and then attempting to cut costs by compromising on
quality and increase revenue through the claims process. Clients are increasingly adopting
procurement methods that do not allow additional revenue to be generated in this way.
UK civil engineering contractors have less in-house design capabilities than their overseas
rivals. This may be a disadvantage in winning turnkey projects overseas and privately
financed projects at home.
UK civil engineering contractors have been slow to start operations in Europe. With the
single European market and harmonization of specifications across Europe, this may leave
them vulnerable to entry from European contractors who are already working throughout
mainland Europe.
UK civil engineering industry has been slower than other industries to exploit information
technology in its main value adding processes.
The level of integration of the design team is low compared to other countries and industries.
Some successes have occurred in value engineering of projects but value management
throughout the life of a project is not as well developed as in other countries.
The leadership style on sites differs greatly from that seen in other countries.
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S.W.O.T Analysis in Project Management
Md. Mashreki Islam Sami
The US market is highly fragmented and may present opportunities to UK civil engineering
companies.
Newly industrializing countries have a need for infrastructure to sustain economic growth but
less well developed home industries and a shortage of money to finance development.
Companies that can arrange finance will find opportunities in these markets.
Privately financed infrastructure projects represent the greatest opportunities in the UK in the
foreseeable future.
Environmental policies, such as the landfill tax may lead to pressure to reuse materials or
look for alternative materials.
Client expectations have changed and civil engineering companies that become more
customer oriented will get more business from these clients.
Higher client expectations and increased use of design and build and design, build, finance
and operate contracts give the leading contractors the chance to increase the barriers to entry
to the industry.
Companies that make a concerted effort to develop core competencies that are value by
clients will be able to differentiate themselves from their competitors.
The UK government and the EU are both working to create research agendas to meet the
specific needs of the construction industry for research and development.
A crucial element of lean thinking is the integration of design and production, which leads to
faster projects, using fewer resources and providing a better result.
Fragmentation of markets compared with other large scale engineering activities such as
aerospace or shipbuilding. Competition between players is therefore keen and margins low.
The overcapacity in the civil engineering market has been sustained by shareholders and
banks who have been unwilling to wind up operations that have consistently underperformed
over a period of years.
UK civil engineering clients have traditionally bought on the basis of lowest price. With
overcapacity and a large number of companies in the market, this has led to pressure on
prices and margins.
Separation of design and construction by clients has limited the opportunities for
contractors to differentiate their offerings from one another. Low prices have therefore been
achieved by passing price pressure down the supply chain rather than through innovations in
product and process.
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Some suppliers exert power over the contractors they supply. Certain suppliers enjoy
monopoly conditions; others have a particular advantage with respect to certain contracts due
to the economics of transporting bulk materials. These suppliers are able to resist price
pressures from contractors.
With a good supply of competent suppliers and subcontractors there may be a rise in the
number professional construction managers who will take work away from the traditional
main contractor, as result quality and performance may deteriorate.
Competition from overseas is increasing. The main threat to UK contractors in their home
market is from Europe. The threat has three elements (i) the opportunities presented by PFI
(ii) harmonization of specifications carried out as part of the Single European Act, and (iii)
the globalization of infrastructure.
Falling demand for civil engineering due to the rise of alternative to construction
There are predictions that demand for transport infrastructure will be hit by the use of IT to
increase the capacity of the current infrastructure or as a substitute for travel.
Increases in the amount of off-site manufacture will shift turnover from contractors to
suppliers.
This above example or situation gives us a clear idea about what are the problems that may arise
and what are the positive ideas for competing with other industries. It seems that in every stage
of a companys growth there are things to understand such as, market demand, availability,
innovations, quality and experience etc. Through analyzing the number of problems and ideas, a
company may come out with a perfect solution which will give them a leap forward to
developments.
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S.W.O.T Analysis in Project Management
Md. Mashreki Islam Sami
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S.W.O.T Analysis in Project Management
Md. Mashreki Islam Sami
Strength
According to the above pie chart, 28 % of the respondents give their opinions of technology as
the strength, 15 % consider supply chain is a great strength and customer service also takes a big
proportion as 11 %. Marketing and warehousing almost have the same proportion to be the
strengths of SYCCL.
Weakness
In the case of weakness, most of the respondents chooses delivery 19 % as the biggest weakness.
People who decide marketing and other aspects as weaknesses of the company have almost the same
proportion 18 %. Sales can be obviously seen also with a big weakness with 14 % response.
Therefore, the company should improve delivery and marketing process.
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S.W.O.T Analysis in Project Management
Md. Mashreki Islam Sami
Opportunity
When the respondents were asked about the opportunity, two big opportunities were the
information system 25 % and technology 19 % in modern logistics development. Sales and
marketing also take two big proportions 12 % and 9 %. Other aspects, like delivery, supply
chain, warehousing, customer service and other aspects are all regarded as opportunities to better
develop by the respondents at almost the same proportion between 3 % and 4 %.
Threat
In case of threat for company, 23 % of people pay more attention to marketing as a threat and
meanwhile, customer service, warehousing and supply chain are considered by several large
proportions like 19 %, 15 % and 12 %. Risks and threats usually lead to failure and loss. 8 %
selected cement package as a threat for the company. From 3 % to 7 % of them are concentrating
on transport, sales and other aspects to be considering threats.
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S.W.O.T Analysis in Project Management
Md. Mashreki Islam Sami
To sum up the above information we can see that 28 % of the respondents give their opinions of
technology as the strength, 15 % consider supply chain is a great strength and only 2 % think of
the cement package. When mentioning the companys weakness, most respondents prefer to
choose delivery and marketing in need of improving. 25 % people are willing to pay more
attention to information system and meanwhile, supply chain, delivery and other aspects are
considered by the same proportion 3 %. Risks and threats usually lead to failure and loss. 23 %
selected marketing as a threat for the company and 19 % are concentrating on customer service.
This table is made from the collected data from the Gant chart and the pie charts shown above.
This table is final summary of the SWOT analysis. The report of the analysis concentrates on the
main points concerning the improvements of the company.
Therefore, we have seen how SWOT analysis can be helpful for industrial sectors, which are the
areas to improve, which areas govern the profit and growth of the company. SWOT analysis also
helps to determine the strategy a company needs to follow.
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S.W.O.T Analysis in Project Management
Md. Mashreki Islam Sami
Business Strategy
Business Diversity
Operational Efficiency
Weakness
Opportunity
Declined Liquidity
Legal Battle
Threat
Competitive Pressures
Here the strengths of Vodafone are its strategic investment, diversity, leading telecommunication
operator and their efficiency in network operation and frequency. However, their investment is
declining over time and gives a weakness for other competitors. Vodafones growing mobile data
gives the biggest opportunity in the market with increasing 3G connections, but competing with
other telecommunication operator and change in technologies with respect to global economy
can be Vodafones major threat in this sector.
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S.W.O.T Analysis in Project Management
Md. Mashreki Islam Sami
Conclusion
SWOT analysis is a very useful tool for the development of any business company or industry to
move forward in to the market with greater possibility to shine. Throughout this report, we have
discussed about how SWOT analysis is done in different sectors such as the industrial,
construction and communication sectors but SWOT analysis can be used for any two or more
contradictory ideas, products, systems etc. SWOT analysis result gives such a clear idea that
anyone can understand the difference or the better solution between two or more options. In
modern day, SWOT analysis is taken into different level using computer simulation such as
SWOT matrix system. In SWOT matrix, an Opportunity vs. Strength matrix is developed and
another matrix Weakness vs. Threat matrix is developed. Both the matrices are solved to find the
best combination from Maximum Sub-array theory [3]. The report also distinguishes between
other types of analysis such as Benchmarking, PESTLE, M.O.S.T Analysis etc. which are also
discussed in brief. SWOT analysis is used to obtain a system which presents a practical way of
assimilating the internal and external information about the business unit, delineating short and
long term priorities, and allowing an easy way to build the management team which can achieve
the objectives of profit growth.
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S.W.O.T Analysis in Project Management
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References
1. SWOT Analysis, Wikipedia,
http://en.wikipedia.org/wiki/SWOT Analysis
2. Medibtikar Team
http://library.medibtikar.eu/Med_docs/AX_4/27_SWOT_analysis/SWOT
3. Department of Building and Real Estate, Hong Kong Polytechnic University
http://www.bre.polyu.edu.hk/BRE_workshop/pdf/COENG-470
4. New Zealand Business
http://www.business.govt.nz/resources/educational-resources/swot analysis/
5. Albert Humprey,Team Action Management
http://istdkochi.org/pdf/swot-analysis.pdf
6. PETLE Analysis,
http://www.pestleanalysis.com
7. Benchmarking, Wikipedia,
http://en.wikipedia.org/wiki/Benchmarking
8. Strategy Consulting Limited,
http://www.strategyconsultinglimited.co.uk/business-strategy/exploring-corporatestrategy-using-m-o-s-t-analysis/
9. Agile construction intuitive, University of Bath, Publiction
http://www.bath.ac.uk/management/larg_agile/publications/pdf/public/96.014.300.pdf
10. Shun Yue Cement Company Limited, SWOT analysis, Logistics process
http://publications.theseus.fi/bitstream/handle/10024/34241/Chen_Jia%20ni.pdf
11. Vodafone Group PLC (VOD) - Financial and Strategic SWOT Analysis Review,
Research and Markets,
http://www.researchandmarkets.com/reports/1292190/
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S.W.O.T Analysis in Project Management
Md. Mashreki Islam Sami