SWOT analysis is a strategic planning tool that looks at a business, project, or person’s strengths, weaknesses, opportunities, and threats. It means figuring out and analyzing the internal and external factors that can make or break a business or project.
Businesses can use SWOT analysis to figure out what their strengths, weaknesses, opportunities, and threats are. Here’s how each group is broken down:
- Strengths: These are the things inside an organization that give it an edge over its rivals. A strong brand reputation, a unique selling point, a talented staff, high-quality products, or great customer service are all examples of strengths.
- Weaknesses: These are the things inside an organisation that can slow it down or make it lose market share. Weaknesses could include a lack of resources, old technology, bad leadership, or a poor marketing plan.
- Opportunities are things outside of an organisation that it can use to help it reach its goals. Opportunities could be things like a growing market, changing consumer tastes, or improvements in technology.
- Threats: These are outside things that could hurt the performance of an organization. Threats could include things like more competition, a slowing economy, new rules, or changing consumer tastes.
By figuring out and analyzing these factors, businesses can come up with plans to use their strengths, fix their weaknesses, take advantage of opportunities, and protect themselves from threats. SWOT analysis is a useful tool for businesses of all sizes. It can be used to help with making decisions, planning strategies, and managing risks.
Usage
It is used in Risk Management
