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A SWOT analysis is a tool that can be used to analyse a firm's internal and external business environment. When used in the context of exporting, it is undertaken to identify the internal and external factors that are likely to have either a positive or negative impact on your firm's ability to export.

The SWOT analysis provides information on the market, competitors, and the business environment which can be used in the formulation of strategy that will determine where and how your firm can best operate and compete.

A SWOT analysis is usually broken down as following:

Internal Environment (i.e. strengths & weaknesses analysis) 

The strengths and weaknesses analysis examines your firm's internal factors, such as its past performance, resources, strategies and capabilities. The areas to be analysed include:

• Products and product range 
• Research and development
• Staff and management skills
• Market share
• Profitability
• Production capacity
• Level of borrowed funds The opportunities and threats analysis is carried out by examining the external factors in the business and market environment. The areas to be analysed include the operating environment and competitive factors;  

External Environment (i.e. opportunities & threats analysis)

Operating Environment

• Political policies and legal practices
• Social & cultural factors
• Economic forces
• Technological environment
• Health and safety 
• Distribution systems 
• Logistics costs (Shipping, duties, packaging)

Competitive Factors 

• Major advantages in price, marketing, innovation or other factors
• Number of potential competitors
• Comparative capabilities of potential competitors

Once these factors have been identified and analysed, your firm will be able to set the scene for export planning and strategy by taking advantage of the positive factors and defending against the negative factors.