What is SWOT?
SWOT analysis is a marketing technique for businesses to identify the STRENGTHS, WEAKNESSES, OPPORTUNITIES, and THREATS of your business. It is a process of creating a strong business strategy in order to generate maximum growth for your business.
Why SWOT Analysis is important?
This process forces you to look at your business strategy from every possible angle. This will not only open the doors for new opportunities but also prepare you for potential threats. Start-up companies are suggested to perform a SWOT analysis during the early phase in order to determine all the aspects. One can shrink the chances of failure, by recognizing what you are missing and avoiding risks that would otherwise catch you off guard.
Strengths are internal. These are the positive aspects of a business, which you have control over. It include resources, skills and capabilities of an employee, or circumstances of the business. Once you discover you strengths, they can be used to produce maximum output.
Weakness are the negative aspects of a business, which can hinder your strengths. By identifying your flaws and acknowledging them, you can find ideas to revamp them.
Opportunities are considered to be the external factors. These factors tend to bring more successful outcomes. Any existing or potential circumstances in the industry that could favour the business.
Threats: Opportunities are always accompanied by threats. External factors that could impair or limit the business. These are the obstacles over which you have no control. The best way to combat this is to have a strong contingency plan for dealing with them when they happen.
How to Use a SWOT Analysis
Once you go through all the aspects of SWOT analysis report, you’ll probably have a long list of possible actions to take. You’ll want to focus on your strengths, reinforce your weaknesses, avoid risks, and seize any opportunity.
But, before you take action, look for possible relations between your matrix’s quadrants. Could you, for example, make use of some of your attributes to broaden your possibilities?
And, by eliminating some of your flaws, would you be able to open even more doors? Now is the time to prune and evaluate your ideas ruthlessly so that you can devote your time and resources to the most relevant points. To make your comparisons more transparent, refine each point.
Carry the options you create to later stages in the strategy-making process and implement them at the appropriate level.
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