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Know Where You Stand

SWOT analysis isn’t academic busywork - it’s how you figure out whether you can win a contract and what strategy gives you the best shot. Done right, it tells you exactly how to position against your competition and what moves will get you the contract. The key insight: Most companies focus on their strengths and ignore everything else. Winners use SWOT to build strategies that exploit competitor weaknesses while protecting their own vulnerabilities.

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The Four Questions That Matter

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What Makes You Dangerous? (Strengths)

Why should the customer choose you over everyone else?
  • What technical work can you do better than anyone?
  • Which customers already trust you and why?
  • What relationships give you inside information or influence?
  • Do you have cost advantages that let you price aggressively?
  • What intellectual property, tools, or assets are unique to you?

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What Could Kill Your Chances? (Weaknesses)

Where are you vulnerable to competitor attacks?
  • What technical work can’t you do or do poorly?
  • Where is your past performance weak or missing?
  • Which key people do you lack compared to competitors?
  • What cost disadvantages price you out of opportunities?
  • Where do you have bad relationships or reputation problems?

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What’s Breaking Your Way? (Opportunities)

What external factors help you win?
  • Is the customer unhappy with the current contractor?
  • Are new regulations or policies favoring your approach?
  • Is new technology disrupting traditional solutions?
  • Are there partnership opportunities that strengthen your position?
  • Are budget increases opening up larger opportunities?

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What’s Working Against You? (Threats)

What external factors could sink your bid?
  • Is the incumbent performing well and loved by the customer?
  • Are competitors making aggressive moves or new investments?
  • Are budget cuts limiting opportunity size or scope?
  • Are new regulations creating barriers you can’t meet?
  • Is market consolidation bringing in larger, better-funded competitors?

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Turn Analysis Into Winning Strategy

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Play Your Strengths Against Opportunities

When good things are happening and you’re strong:
  • Customer is unhappy with incumbent + you have better technical approach = Lead with innovation
  • New regulations favor your methodology + you have the expertise = Position as the compliant choice
  • Budget increases are creating larger opportunities + you have financial strength = Bid aggressively for bigger contracts

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Use Opportunities to Fix Your Weaknesses

When good things are happening but you’re weak:
  • Customer wants new technology but you lack expertise = Partner with a tech company that has it
  • Market is shifting toward your approach but you have no past performance = Team with someone who does
  • New requirements favor smaller companies but you lack relationships = Invest heavily in relationship building

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Use Your Strengths to Fight Off Threats

When bad things are happening but you’re strong:
  • Strong incumbent + you have superior relationships = Leverage contacts to position for the future
  • Aggressive competitor pricing + you have cost advantages = Price even more aggressively to maintain advantage
  • Budget cuts threatening opportunity size + you have financial resources = Offer cost-sharing or creative financing

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When Everything’s Working Against You

When bad things are happening and you’re weak:
  • Strong incumbent + you have no relationships = Don’t bid, wait for the next opportunity
  • Aggressive competition + you can’t match their capabilities = Look for teaming opportunities instead
  • Budget cuts + you’re already high-cost = Focus on smaller opportunities where your costs are competitive

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Put It All Together

Example SWOT-Based Strategy: Situation: IT modernization contract, beloved incumbent, tight budget, your company has innovative cloud expertise but limited government past performance. Strategy:
  • Strength (cloud expertise) + Opportunity (modernization trend) = Lead with cloud-first approach
  • Weakness (limited past performance) + Opportunity (teaming possibilities) = Partner with established government contractor
  • Threat (beloved incumbent) + Strength (innovation) = Position for next recompete while building relationships this cycle
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