External Factor

Internal Ability

Strength

Weakness

l Product quality

l Product research and development

l Infrastructure

l Energy conservation and environmental protection

l Close relationship with customers

l Possible technical risks

l High maintenance costs

l Requirements of supporting equipment for technical implementation

Opportunity

SO—strategy—Combination of strengths and opportunities

WO—strategy—Combination of weaknesses and opportunities

l Broad market space

l Favor for the external economic and social situation

l Government policy encourages

l Rich availability of resources

u (Strategies that may be adopted)

u Maximum development

u (Strategies that may be adopted)

u Make use of opportunities and avoid weaknesses

Threats

ST—strategy—Combination of strengths and threats

WT—strategy—Combination of weaknesses and threats

l The threat from the direct competitors

l The threat of copycats

l Threats from the stakeholders

l Threat of potential entrants

u (Strategies that may be adopted)

u Make use of advantages and reduce threats

u (Strategies that may be adopted)

u Shrink, peel, and merge