Author Topic: SWOT analysis  (Read 333 times)

Sri Nikhila

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SWOT analysis
« on: March 23, 2021, 09:42:21 pm »
what is SWOT analysis? why and when do we use the SWOT analysis ?

Sri Nikhila

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Re: SWOT analysis
« Reply #1 on: March 23, 2021, 09:45:34 pm »
A SWOT Analysis is one of the most commonly used tools to assess the internal and external environments of a company and its the most important part of a company?s strategic planning process. A SWOT analysis can be done for a product, place, industry, and a person. A SWOT analysis helps with both strategic planning and decision-making of the company as it introduces more opportunities to the company as for the forward-looking bridge to generating strategical alternatives. In short, a SWOT analysis is a simple and effective framework for identifying strengths, weaknesses, opportunities, and threats that a company faces. It is important to leverage strengths, minimize threats, and to take advantage of available opportunities. Conducting a SWOT analysis is useful for strategical planning and for determining the objectives of a company.
SWOT is an acronym stands for
Strengths -- This is the Characteristics of a business which give it advantages over its other competitors.
Weaknesses -- This is the Characteristics of a business which make it disadvantages relative to competitors. 
Opportunities -- These are some Elements in a company?s external environment that allow it to formulate and implement strategies to increase profitability.
Threats -- These are Elements in the external environment that could endanger the integrity and profitability of your business.


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Re: SWOT analysis
« Reply #2 on: April 11, 2021, 03:34:20 pm »
SWOT analysis is designed to facilitate a realistic, fact-based, data-driven look at the strengths and weaknesses of an organization, initiatives, or within its industry. The organization needs to keep the analysis accurate by avoiding pre-conceived beliefs or gray areas and instead focusing on real-life contexts. Companies should use it as a guide and not necessarily as a prescription.

- SWOT analysis is a strategic planning technique that provides assessment tools.
- Identifying core strengths, weaknesses, opportunities, and threats leads to fact-based analysis, fresh perspectives, and new ideas.
- SWOT analysis works best when diverse groups or voices within an organization are free to provide realistic data points rather than prescribed messaging.

How to Do a SWOT Analysis
SWOT analysis is a technique for assessing the performance, competition, risk, and potential of a business, as well as part of a business such as a product line or division, an industry, or other entity.

Using internal and external data, the technique can guide businesses toward strategies more likely to be successful, and away from those in which they have been, or are likely to be, less successful. Independent SWOT analysts, investors, or competitors can also guide them on whether a company, product line, or industry might be strong or weak and why.

A Visual Overview
Analysts present a SWOT analysis as a square segmented into four quadrants, each dedicated to an element of SWOT. This visual arrangement provides a quick overview of the company?s position. Although all the points under a particular heading may not be of equal importance, they all should represent key insights into the balance of opportunities and threats, advantages and disadvantages, and so forth.

Strengths describe what an organization excels at and what separates it from the competition: a strong brand, loyal customer base, a strong balance sheet, unique technology, and so on. For example, a hedge fund may have developed a proprietary trading strategy that returns market-beating results. It must then decide how to use those results to attract new investors.

1. What is our competitive advantage?
2. What resources do we have?
3. What products are performing well?

Weaknesses stop an organization from performing at its optimum level. They are areas where the business needs to improve to remain competitive: a weak brand, higher-than-average turnover, high levels of debt, an inadequate supply chain, or lack of capital.

1. Where can we improve?
2. What products are underperforming?
3. Where are we lacking resources?

Opportunities refer to favorable external factors that could give an organization a competitive advantage. For example, if a country cuts tariffs, a car manufacturer can export its cars into a new market, increasing sales and market share.

1. What technology can we use to improve operations?
2. Can we expand our core operations?
3. What new market segments can we explore?

Threats refer to factors that have the potential to harm an organization. For example, a drought is a threat to a wheat-producing company, as it may destroy or reduce the crop yield. Other common threats include things like rising costs for materials, increasing competition, tight labor supply. and so on.

1. What new regulations threaten operations?
2. What do our competitors do well?
3. What consumer trends threaten business?