Business Problem-Solving and Strategy

3SW Analysis

Deciding Pros and Cons Based on Relativity

After the OT analysis comes the SW analysis. We will cover ways, concepts, and key points to analyzing your company's strengths and weaknesses.

First, remember that your company's strengths and weaknesses are relative to those of your competitors and that there is no golden standard. This is also true when analyzing competitors’ strengths and weaknesses. In a competitive environment, everything is judged by relative evaluation.

Moreover, strength doesn't always lead you to success. Just as weakness may not be the decisive factor for your loss. Because if your strength is not connected to the element that could make or break the competitive edge, or the industry‐wide success factor (KSF), it is not very useful. On the other hand, a grave weakness that is not related to the KSF may not directly lead to a disaster. The opposite is true as well. A weakness that is linked to the KSF can make you fail, while a strength that is directly connected to the KSF can provide you with a great advantage.

Here's an example: Many Japanese companies are faced with the issue of “excessive quality” in emerging countries. The quality of Japanese manufactured goods is top‐notch, and in that sense, this is a strength. However, the KSF of those ...