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I have come accross swot analysis on various areas of the course, i have the understanding that its only relevant in analysis of external environment , but in going through book its mentioned in strategic options as well, pls clarify
SW deals with internal; OT deals with external.
By understanding those you can think about what strategic options might be viable.
I wanted to know basically whether SWOT analysis is used for internal resources and competencies and external environment or it can be used to weigh in strategic options like SWOT analysis of a particular strategy? like for example SWOT analysis of cost leadership strategy,
thanks
It can be used for either.
You can use SWOT initially to gather information which would then guide strategic options.
Or you could look at a strategic option already chosen and check if it makes sense.
If SWOT shows you are a small company with inefficient production and other producers are large and efficient, then cost leadership is probably no for you.
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