Are You Still Using the Outdated SWOT Analysis? 

In 1979, the tired and inadequate SWOT analysis finally went out the window like swats on schoolchildren, when Harvard’s Michael Porter began propagating his 5 Forces Analysis. I hope you aren’t still using SWOT (Strengths, Weaknesses, Opportunities & Threats) as the end all and be all of your strategy process, God forbid! Yes, it’s easy to say and remember but that ain’t strategy, it’s hardly a start. 

I’ve reformulated Porter’s list and labeled them as “Pressures.” Along with these pressures that most every business faces, there are trends to consider. Finally with some modicum of agreement on the pressures and trends your Strategy Dialogues team can begin to prioritize potential actions and responses. So, my process is one of assessing Pressures, Trends & Actions, i.e., PTA, thus, the PTA Assessment:

The PTA Assessment Process 

Assessing the

A. Pressures

B. Trends - Past, Current & Future 

C. Actions & Your Decision on Their Priority…all toward yielding your greatest competitive advantage.

Here are questions that you should ask yourself and those on your strategic dialogue team. With questions asking for a rating, give or ask for a 1-10 rating, with the other questions answer them as you see fit. 

7 Pressures on Business

I. Competitive Pressure

1. What is the number and capability of the significant competitors you must consider? 

1. Do you have relatively equal products and services amongst the competition, or do you have distinct competitive advantages over the competition? 

• Consider doing a listing of Competitive Uniquenesses, Advantages, Equalities and Weaknesses as compared to both you and your top competitors. 

1. How can you present and prove your advantage against your competitors? 

II. Vendor or Supplier Pressure 

1. How unique are the products and services of your key inputs?

2. How can you partner with your suppliers to exchange mutual advantage?

3. How can you leverage your power with suppliers with whom there is no partnering potential? And which of the above two approaches gives you the greatest advantage?

III. Customer Pressure

1. How easy is it for customers to drive prices down?

2. How little does it cost a customer to switch to a competitor?

3. How can you create greater stickiness with customers?

IV. The Pressure & Potential of New Competition or Alternatives 

1. What is the ability and ease with which new competitors can enter your market?

2. Do you have strong or little protection around your key technologies?

3. What can you do to increase the barriers to your market?

V. Employee & Talent Pressures 

1. Are there pressures, demands or expectations from our employees, unions or other human resources that currently or could in the future pressure us to a point of vulnerability? 

2. Do we have a distinct advantage or constraint in our ability to attract and retain the talent our organization demands? 

3. Is the talent our organization demands, talent that can be recruited or is it talent that we uniquely need to develop? 

VI. Substitution Pressure 

1. What is the likelihood and ease with which customers can find a different way to get the value that you deliver to them?

2. How likely is it that you can become the only source?

3. What should you do to improve your likelihood of being the preferred provider?

VII. Pressure from Change In Resources – Including Technology 

1. Is technology and/or information we rely on changing so dynamically that it could affect our business? 

2. Could we protect or become a sole owner of technology or information that is key to our business? 

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4. Is there information or technology we are and/or could potentially be developing that could become a source of strategic advantage?