Strengths, Weaknesses, Opportunities and Threats (SWOT) analysis has been a
useful tool for many business related problems. The purpose of SWOT analysis is
to isolate key issues and to facilitate a strategic approach. The process of using the
SWOT approach requires an internal survey of strengths and weaknesses of the
program and an external survey of opportunities and threats (Balamuralikrishna
& Dugger, 1995).
SWOTs can be performed by individual managers or by groups. Group techniques
are particularly effective in providing structure, objectivity, clarity and focus to
discussions about strategy which might otherwise tend to wander or else be strongly
influenced by politics and personalities (Glass, 1991). Groups dynamics can also be
affected by these factors if the process is not managed carefully.
In e-banking, SWOTs can be used to determine internal strengths such as flat
organizational structures and relevant in-house skills, or weaknesses such as lack
of integrated back end systems and employees’ resistance to change. External opportunities such as increase in market share or image enhancement as well as threats
such as potential new entrants and negative publicity if things go wrong can also
be identified. Although examples given here may sound obvious and superficial, a
detailed application of this approach often throws up surprises for even the most
experienced managers.