Organizations often use a tool called a SWOT analysis to help them better understand the business and the environment in which they operate. SWOT stands for STRENGTHS, WEAKNESSES, OPPORUNITIES, and THREATS.

Strengths and weaknesses are a reflection of the business, its owner and/or any employees, and its capabilities. Because these things describe the actual business, we say that these are internal factors.

Opportunities and threats refer to things outside of the business. Since these factors are outside of the control of the business, they are referred to as external, or environmental, factors.

The purpose of a SWOT analysis is to list or map out all of the business’ strengths and weaknesses, and then to do the same for all of the opportunities and threats. This helps the business identify a strategy. Opportunities that match the business’ strengths are things that the business should pursue. Threats that particularly align with weaknesses are things the business should be especially careful to avoid.

Company synopsis: Niño Novelties is a specialty distributor and retailer based in California. The company specializes in distributing traditional Hispanic-themed toys, games, and novelty products. Niño Novelties distributes products to stores throughout California and sells products directly to consumers via a retail website. The company also operates three physical stores that are open to the public, and two more are in the planning stage.

Listed below are possible elements of Niño’s SWOT analysis. Drag each element to the appropriate location in the SWOT grid according to which category you believe it falls under.

  1. Brand recognition in western United States
  2. Lack of brand recognition in Europe
  3. Strong demand for Hispanic-themed products in the southeastern United States
  4. Strong e-commerce infrastructure developed by the company
  5. Statistics suggest people have less disposable income for novelty products
  6. Current retail stores located in high-traffic areas
  7. The company has no Facebook presence
  8. A lack of competition outside of the United States
  9. Strong competition in the United States
  10. The company has no experience marketing outside of North America





          You have finished this activity if you want to do it again, please refresh your browser.