SWOT Analysis
- What is SWOT Analysis ?
- What the elements of SWOT Analysis ?
- What the benefit we use the SWOT Analysis ?
- What the simple rules for SWOT Analysis ?
- What the limitation of SWOT Analysis ?
Answer :
SWOT Analysis
1)
SWOT Analysis is a planning strategy
to understanding what our business Strength, Weakness, Opportunity, and Treat.
Utilize our strength to handle our weakness and utilize our strength to get
opportunity and utilize our strength to make strategy to finish what the threat
we get.
SWOT Analysis is a simple but useful framework for analyzing
your organization's strengths and weaknesses, and the opportunities and threats
that you face. It helps you focus on your strengths, minimize threats, and take
the greatest possible advantage of opportunities available to you.
SWOT Analysis can be used to "kick off" strategy
formulation, or in a more sophisticated way as a serious strategy tool. You can
also use it to get an understanding of your competitors, which can give you the
insights you need to craft a coherent and successful competitive position.
2)
The element of SWOT Analysis are
a. Strengths:
- What advantages does your organization have?
- What do you do better than anyone else?
- What unique or lowest-cost resources can you draw upon that others can't?
- What do people in your market see as your strengths?
- What factors mean that you "get the sale"?
- What is your organization's Unique Selling Proposition (USP)?
b. Weaknesses:
- What could you improve?
- What should you avoid?
- What are people in your market likely to see as weaknesses?
- What factors lose you sales?
c. Opportunities:
- What good opportunities can you spot?
- What interesting trends are you aware of?
d. Threats
- What obstacles do you face?
- What are your competitors doing?
- Are quality standards or specifications for your job, products or services changing?
- Is changing technology threatening your position?
- Do you have bad debt or cash-flow problems?
- Could any of your weaknesses seriously threaten your business?
Strength and Weakness
the internal environment - the situation inside the
company or organization
Opportunity and
Threats the external environment - the situation outside the
company or organization
3)
Benefits of SWOT Analysis
The main advantages of conducting a SWOT analysis is that it has little or no cost - anyone who understands your business can perform a SWOT analysis. You can also use a SWOT analysis when you don't have much time to address a complex situation. This means that you can take steps towards improving your business without the expense of an external consultant or business adviser.
The main advantages of conducting a SWOT analysis is that it has little or no cost - anyone who understands your business can perform a SWOT analysis. You can also use a SWOT analysis when you don't have much time to address a complex situation. This means that you can take steps towards improving your business without the expense of an external consultant or business adviser.
Another advantage of a SWOT analysis is that it
concentrates on the most important factors affecting your business. Using a
SWOT, you can:
- understand your business better
- address weaknesses
- deter threats
- capitalys on opportunities
- take advantage of your strengths
- develop business goals and strategies for achieving them
4)
The simple rule of SWOT
The post offers simple rules for a
successful SWOT analysis:
- Be realistic about the strengths and weaknesses of your organization
- Distinguish between where your organization is today and where it could be in the future
- Be specific. Avoid gray areas.
- Always analyze in relation to your competition and whether you are better or worse
- Keep your SWOT short and simple; avoid unnecessary complexity and over analysis
- Don’t list an opportunity if the same opportunity is available to competitors
- Don’t list a strength if your competitors also has it.
5)
The Limitation of SWOT
When you are conducting a SWOT analysis, you should keep in
mind that it is only one stage of the business planning process. For complex
issues, you will usually need to conduct more in-depth research and analysis to
make decisions.
Keep
in mind that a SWOT analysis only covers issues that can definitely be
considered a strength, weakness, opportunity or threat. Because of this, it's
difficult to address uncertain or two-sided factors, such as factors that could
either be a strength or a weakness or both, with a SWOT analysis (e.g. you
might have a prominent location, but the lease may be expensive).
A
SWOT analysis may be limited because it:
- doesn't prioritise issues
- doesn't provide solutions or offer alternative decisions
- can generate too many ideas but not help you choose which one is best
- can produce a lot of information, but not all of it is useful.
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