Conducting a SWOT analysis is a great way to think about your business in a whole new way. S.W.O.T is the acronym for Strengths, Weaknesses, Opportunities and Threats. By taking into consideration the strengths and weaknesses of your business, as well as the threats and opportunities that your company faces in the market is a great way to come up with a strong business strategy.
What is a SWOT analysis?
A SWOT analysis is an ideal framework by which you can quickly identify and analyze the external and internal factors that can have an impact on the future viability of a place, product, person or project.
What does SWOT measure?
Your company’s strengths and weaknesses are internal (For example: patents, location or reputation). You have the power to change these over a period of time, by carrying out some work. On the other hand, opportunities and threats are external (For example: prices, competitors or suppliers). These are out there in the marketplace, happening whether your company likes it or not. You do not have the power to change them.
What are the four elements that a SWOT analysis examines?
- Strengths: Resources and internal attributes that support a successful outcome for your business
- Weaknesses: Resources and internal attributes that work against a successful business outcome
- Opportunities: External factors that your project or company can use to its advantage
- Threats: External factors that could jeopardize your company or project
