Swot Analysis

Introduction

SWOT analysis enables firms to identify factors which need to be taken into account when developing marketing and corporate strategy. SWOT is an acronym which stands for Strengths, Weaknesses, Opportunities and Threats. Strengths and Weaknesses are internal factors which are controllable by the organisation. Opportunities & threats are external factors which are uncontrollable by the organisation.


Below is a diagram showing each of the sections that make up a SWOT analysis

Diagram Showing the components of SWOT

Strength Factors

Strengths are internal factors that will help the organisation be successful. They can include employees, procedures, business assets and products. Examples of internal factors that are a strength are:

Opportunity Factors

Opportunities are factors outside the business which the firm may be able to use to help it grow the business. Examples of opportunities include

Threat Factors

Threats are factors outside the business which could make trading conditions more challenging for the firm. Examples of threats include

Conclusion

A SWOT analysis is a simple way to quickly assess the things that are "good" and "bad" for an organisation on a particular date. After the SWOT analysis firms should work out how to they can build on their strengths and make the most of opportunities. They also need to assess the impact of weaknesses to decide whether they need to get rid of them or simply prevent them from growing. Threats are external factors so organisations can not control them or wipe them out, instead firms should plan how to minimise their impact on the business.

 

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