SWOT Analysis and Porter’s Five Forces for MBA Capstone Projects

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SWOT analysis and Porter’s Five Forces are two foundational frameworks often used in MBA Capstone projects to assess a business’s internal and external environment. Both tools help you understand how a business can improve its competitive position.

4.1 Conducting a SWOT Analysis

  • Strengths: Identify what the organization does well, such as a strong brand, loyal customer base, or proprietary technology.
  • Weaknesses: Recognize areas where the business is underperforming, such as operational inefficiencies, poor customer service, or high costs.
  • Opportunities: Analyze external opportunities such as market growth, technological advancements, or unmet customer needs.
  • Threats: Identify external factors that could harm the business, such as competition, economic downturns, or regulatory changes.

4.2 Conducting Porter’s Five Forces Analysis

  • Threat of New Entrants: How easy or difficult is it for new competitors to enter the industry? Consider barriers to entry such as capital requirements, economies of scale, and brand loyalty.
  • Bargaining Power of Suppliers: Assess how many suppliers are available and whether they can influence prices or quality.
  • Bargaining Power of Buyers: Determine how much influence customers have over the price and quality of products or services.
  • Threat of Substitutes: Evaluate the availability of alternative products or services that could replace yours.
  • Industry Rivalry: Assess the intensity of competition within the industry and how it impacts pricing, innovation, and customer loyalty.

4.3 Applying SWOT and Porter’s Five Forces

  • Use SWOT to assess internal factors like resources and capabilities, while Porter’s Five Forces focuses on the external competitive environment.
  • SWOT can help identify opportunities and threats, while Porter’s Five Forces can help determine the attractiveness of the industry.

Published by Lisa