Using SWOT Analysis to Define Current Competitive Position

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  • 0:03 What Is SWOT Analysis?
  • 0:52 Strengths
  • 2:08 Weaknesses
  • 3:15 Opportunities
  • 4:06 Threats
  • 5:11 Lesson Summary
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Lesson Transcript
Instructor: Sean Kennedy

Sean has 8 years experience as a supervisor and has an MBA with a concentration in marketing.

Using SWOT analysis helps a company determine their competitive position in their industry. In this lesson, we'll discuss the evaluation of strengths, weaknesses, opportunities, and threats relating to a business.

What Is SWOT Analysis?

Have you ever wondered what the purpose of a SWOT analysis is? SWOT analysis is a tool used by companies to analyze their strengths, weaknesses, opportunities, and threats. SWOT analysis examines the strengths and weaknesses, which are considered the internal part of the company, while the opportunities and threats are the external part of the company. This tool is often included in their business plan to analyze the company in depth.

Meet the fictional Atlantic Mobile Company. They want to determine their relative position in the mobile phone industry and need a tool that will help to give them in-depth information about the company. The company decides they want to develop a SWOT analysis to determine their position in the mobile phone industry.

Let's examine each part of the SWOT analysis as we follow Atlantic Mobile Company through their process.


Strengths include what a company does better than other companies, advantages it has, and what consumers view as a positive attribute. When including strengths on a business plan, it helps show the investors how the company has some key advantages over competitors. Strengths are internal aspects in the organization that are positive factors that help add value to a company.

Atlantic Mobile Company is creating their first SWOT analysis and needs to determine their strengths. Through the SWOT analysis, they determine that their strengths include excellent customer service, competitive pricing on cell phone plans, and good brand reputation. Having good customer service is helpful to the company because one of their main competitors has been receiving complaints about poor customer service. This allows the company to remain competitive. Competitive pricing helps to make sure Atlantic Mobile Company can stay in line with big competitors. A good brand reputation makes the company look good to consumers.

Determining strengths is highly beneficial for the company. They are able to determine which areas they have succeeded in and even reward those employees responsible for their success. The Atlantic Mobile Company should continue to work on their strengths to make them even better and learn why these strengths are so important to consumers.


No matter how strong a company may be, there are always weaknesses for a company to work on. Weaknesses are internal functions in an organization that need to be improved. Weaknesses are the negative aspects that need to be fixed in order to stay competitive. Weaknesses put a company at a disadvantage and take away from a company's competitiveness.

The SWOT analysis has shown Atlantic Mobile Company some weaknesses they need to work on. For instance, when customers switch cell phones from their carrier to Atlantic Mobile Company, they experience problems. Another weakness is that the cost for the insurance they offer for cell phones is higher than their competitors'. The company has had limited growth within the last year because they have not expanded operations. The last weakness is that they are smaller than their competitors.

Compared to other large mobile companies, Atlantic Mobile Company is a new and smaller company. The company must figure out their weaknesses so that they can try and turn them into strengths. For instance, they can fix their phone insurance prices to align with competitors. Although weaknesses are not good, a SWOT analysis will help the company develop ways to improve weaknesses.

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