Strategy Library

Strength/weakness analysis

A strengths/weaknesses analysis assesses the internal strengths and weaknesses of the company.

Definition of the strengths/weaknesses analysis

It is also referred to as enterprise analysis and is then the internal analysis that examines the strengths and weaknesses of the company in the form of self-observation. These strengths and weaknesses are ultimately the result of in-house processes.

Description of the strengths/weaknesses analysis

A strengths / weaknesses analysis can be carried out with the aid of checklists, which are supplemented by industry-specific factors. Thereafter, each point of the checklist is assessed company-related. Such checklists can be very different. They can be used in research and development as well as in marketing and production. They can start with the procurement and the financing, but also have the whole business as their content. In addition, there is an assessment of the strengths and weaknesses of corporate resources such as property and financial resources, employees and executives, but also the company's position on the market. These include an assessment of the overall and submarkets, product and performance advantages, but also the product mix or the ratio of unit costs to market prices. Depending on the sector and company, the checklists can be designed very differently and have different focuses on the content. Ultimately, individual checklists should be developed for each company, according to which their own company is rated.

Strengths / weaknesses analysis can be an integral part of SWOT analysis, identifying strengths and weaknesses as internal factors and opportunities and risks as external factors. Combining strengths and weaknesses, opportunities and risks with each other results in four fields of action, from which specific recommendations for action can be derived. These recommendations can become a holistic strategy for the entire company.

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