SWOT Analysis

http://mksnotes.blogspot.com 5 comments

SWOT (Strengths, Weakness, Opportunities & Threats) analysis is a business planning tool to assess the overall situation of the industry by highlighting various external and internal factors affecting your business. This was used for the first time in 1980’s by GE. This helps a lot in understanding your business and shows up improvement areas as well as areas which can provide competitive advantage.

Strengths & Weaknesses arises due to internal factors prevailing within organization such as Work environment, Organizational structure, Operational efficiency, Brand value / image, key personal, financial capacity, market position, Patents & many more. One should build upon their strengths and minimize weaknesses. E.g. Huge cash surplus could be strength of a company and large debt can be seen as a major weakness. 

So, keep on analyzing all the factors which makes you different from others and gives you competitive advantage. After analyzing your key strengths, don’t forget to highlight the factors that put your business at a disadvantage to the others.

Opportunities & Threats arises due to change in external environment. External factors arise most importantly from changing customer tastes & preferences, competitors, PEST (Political environment, Economic policies, Social changes & Technological advancement) and many more. 

Grabbing of Opportunities can sometimes give your business “first mover advantage” and neglecting potential threats can end up your business. So put extra efforts for highlighting potential opportunities and threats.   

SWOT analysis example - Illustrative

Advantages:
1. Highlights major areas which need immediate action.
2. Makes you understand your business in a better way.
3. Companies can work on their strengths to gain “Competitive advantage”.
4. Weaknesses can be addressed separately to minimize heavy loss in future. 
5. Early warning signals are generated through potential threats and can be counter attacked at beginning stage.

Disadvantages:
1. It gives you lot of insight about your business but doesn’t provide solutions for problems.
2. It doesn’t prioritize issues.

5 comments :

  1. Unknown29 March 2018 at 02:06

    Thank you so much for the post you do. I like your post and all you share with us is up to date and quite informative, i would like to bookmark the page so i can come here again to read you, as you have done a wonderful job.
    definitive agreement

    ReplyDelete
  2. Evan24 October 2018 at 23:19

    SWOT analysis of yourself is called personal SWOT analysis. You can find many SWOT analysis based on various scenarios in the diagram community of Creately. There are 100s of SWOT analysis examples and templates to create SWOT diagrams online.

    ReplyDelete
  3. Visitnepal26 January 2020 at 01:22

    This comment has been removed by the author.

    ReplyDelete
  4. Visitnepal26 January 2020 at 01:26

    Thank you so much for the post you do. I like your post and all you share with us is up to date and quite informative, i would like to bookmark the page so i can come here again to read you, as you have done a wonderful job.

    Please read Internal Analysis: Concept, Area, Process, and Method for details.
    Please read Internal Analysis: Concept, Area, Process, and Method

    ReplyDelete
  5. Balajee Nanduri19 June 2020 at 06:50

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    ReplyDelete

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