SWOT analysis is a strategic planning tool used to identify internal (strengths, weaknesses) and external (opportunities, threats) factors affecting a business, enabling better decision-making and competitive advantage.
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for the second tool in business analysis
let's discuss the swot analysis
swot stands for strengths
weaknesses opportunities and threats
swot analysis is a strategic planning tool
tool
used to identify the internal and
external factors
involved or affecting the business
the strengths and weaknesses are
internal factors
while opportunities and threats are
external factors
internal factors are factors that are
within the control of the business
so the strengths and weaknesses can be
influenced by the actions
of the organization in terms of its people
people
system infrastructure culture
and etc while external factors
such as opportunities and threats
are factors outside the organization's control
control
but the business still needs to respond
to them
now let's define each factor in the swot analysis
analysis
we already know that analysis of
internal environment
leads to identification of strengths and weaknesses
weaknesses
strengths can be identified as the
positive aspects
which are within the control of the organization
organization
these are the advantages the company has
and should leverage on
to gain competitive advantage over rival firms
firms
weaknesses on the other hand are the
constraining factors
that hinder the organization's ability
to achieve its desired
goals these are the negative aspects of
your company
that you want to overcome and improve
subsequently analysis of external environment
environment
leads to identification of opportunities
and threats
opportunities are the attractive factors
that is open to the business
so you ask the question how do you
exploit these opportunities
to help your organization to develop and improve
improve
while threats are the factors that is
beyond the control of the organization
which you ask what do you do to defend
your organization
from potential damage of the business
present existence
and future development
by understanding these four aspects of the
the
swot analyses a firm can better leverage
its strengths correct its weaknesses
capitalize on golden opportunities
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