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A tool that identifies the trengths, eaknesses, pportunities and hreats of an organization.
Specifically, SWOT is a basic, straightforward model that assesses what an organization can and
cannot do as well as its potential opportunities and threats. The method of SWOT analysis is to
take the information from an environmental analysis and separate it into internal (strengths and
weaknesses) and external issues (opportunities and threats). Once this is completed,
SWOT analysis determines what may assist the firm in accomplishing its objectives, and what
obstacles must be overcome or minimized to achieve desired results.

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A firm's strengths are its resources and capabilities that can be used as a basis for developing a
competitive advantage. Examples of such strengths include:

i „eputation of being a quality apparel manufacturer for the mass market.

i èompliance with International Labor regulations.
i „elatively disciplines and skilled labor and a trainable work force.
i „eputed internationally customer base.
i On time delivery of standard ³all season´ product.


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The absence of certain strengths may be viewed as a weakness. For example, each of the
following may be considered weaknesses:

i Isolation of trade partners and heavy dependence on local buying agencies.

i Lack of geographical diversifications in terms of its overseas market.
i Insufficient international and bi-lateral trade agreements to support the industry.
i Increasing labor cost compared with other countries in South Asian region.
i Indicate focus of developing backward integration linkages support to the industry.
i Yon existence of product design and new product developments.
i Yon existence of Sri Lanka brand identity.
i Low productivity of labor, inefficient use of machinery and manufacturing process.
i The relatively high of utilities.

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The external environmental analysis may reveal certain new opportunities for profit and growth.
Some examples of such opportunities include:

i Sri Lanka becomes a total service provider for the Apparel industry.
i àromote Sri Lanka as a socially responsible manufacturer of apparels.
i Transitions to products that require high labor content.
i The positive impact of the government¶s peace initiative.

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èhanges in the external environmental also may present threats to the firm. Some examples of
such threats include:

i „apidly changing trends in the retailing industry.

i The former socialist countries and East European nations potential to become major
suppliers for the European market.
i [lobal formation of bi-lateral and multi-lateral trade blocks.
i Yew entrants to the industry.
i Emergence of efficient international shipping hubs in the Asian region.

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i Transform the industry from a µmanufacturer¶ to a provider of a µfully integrated
services¶.
i Increase market penetration to the premium market segments to the global apparel
industry.
i ‰ecome internationally famous as a superior manufacturer of specific product categories.
i èonsolidate and strength the industry to meet challenges of the free market.
i àrotected certain countries at cost of more competitive countries.