What is SWOT Analysis ?
SWOT Analysis is a tool to find out the Strengths, Weaknesses, Opportunities, and Threats that are to be expected in a business. It is one of the best tools to conduct the internal and external analysis for any company.
Example of SWOT Analysis
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Template SWOT Analysis
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SWOT analysis keys groups
SWOT analysis key group pieces split into two main categories:
- Internal factors — the strengths and weaknesses internal to the organization
- External factors — the opportunities and threats presented by the environment external to the organization
Internal factors in details:
1.Strengths: Strengths are those features of the business which allow you to operate more effectively than your competitors. For example, a strength could be your specialist technical knowledge.
- What makes you different from your competitors?
What advantages do you have over your competitors?
- What is it that you do well?
2. Weaknesses: Weaknesses are areas capable of improvement. Are you lacking skills or new products? Do you have a higher cost base or lower productivity than your competitors?
Try answering the following questions:
- Do you do anything badly?
- What causes problems or complaints?
Can you do anything better?
What causes problems or complaints?
- What should be avoided?
External factors in details:
1.Opportunities: Can you identify any new opportunities for your business?
Changes in technology and markets
- Social factors, eg population fluctuation, lifestyle changes, etc.
Use of marketing or promotional techniques to boost the business
- Potential new uses of products and / or services
2.Threats: Threats can be external or internal, and are anything which can adversely affect your business. External threats could be inflation, new legislation, or a new competitor in your market. Internal threats could include a skill or staff shortage within your organisation.
What obstacles face your business?
Are there any changes in products, services or technology which could threaten your business?
- What are your competitors doing?
- Do you have any financial problems such as bad debt or cash-flow difficulties?
swot analysis weakness
SWOT analysis is just one method of categorization and has its own weaknesses. For example, it may tend to persuade its users to compile lists rather than to think about actual important factors in achieving objectives. It also presents the resulting lists uncritically and without clear prioritization so that, for example, weak opportunities may appear to balance strong threats.
It is prudent not to eliminate any candidate SWOT entry too quickly. The importance of individual SWOTs will be revealed by the value of the strategies they generate. A SWOT item that produces valuable strategies is important. A SWOT item that generates no strategies is not important.