A SWOT Analysis distinguishes between internal factors (strengths and weaknesses) and external

factors (opportunities and threats). Strengths are internal capabilities, resources, or skills that give

the organisation an advantage in the market—such as strong supplier relationships, unique

expertise, or cost leadership. Weaknesses are internal limitations, such as lack of investment, poor

technology, or inadequate processes. These are factors the organisation has direct control over and

can improve. On the other hand, opportunities and threats are external influences outside the

business’s direct control, such as market trends, legislation, or competitor actions. For category

management, applying SWOT allows managers to assess the current position of categories and

design strategies that build on strengths and address weaknesses. This analysis also ensures that

procurement strategies remain aligned with organisational goals and competitive environments. The

correct recognition of internal versus external factors is essential to avoid misdiagnosis and wasted

effort.

Reference: CIPS L5M6 Study Guide, p.121