Delve more into SWOT analysis

A SWOT analysis is an incredibly simple, yet powerful tool to help you develop your business strategy, whether you’re building a startup or guiding an existing company. 

What is a SWOT Analysis? 

SWOT stands for Strengths, Weaknesses, Opportunities, and Threats. 

Strengths: 

Strengths are things that an organization does particularly well, or in a way that distinguishes it from other competitors. Think about the advantages an organization has over others. These might be the motivation of staff, access to certain materials, or a strong set of manufacturing processes, etc. Any aspect of a company can only be called their strength if it brings them a clear advantage. 

Weaknesses: 

Weaknesses, like strengths, are inherent features of a company, so focus on its people, resources, systems, and procedures. Think about what they could improve, and the sorts of practices they should avoid. The Weakness in the SWOT analysis must be thoroughly found out through diligent research analysis. If missed can hamper any company’s growth. 

Opportunity: 

Opportunities are openings or chances for something positive to happen, but one will need to claim them. A company can take advantage of opportunities and protect against threats but can’t change them. Examples include competitors, prices of raw materials, and customer shopping trends. Being able to spot and exploit opportunities can make a huge difference to the organization's ability to compete and take the lead in their respective market. 

Threats: 

Threats include anything that can negatively affect a business from outside, such as supply chain problems, shifts in market requirements, or a shortage of recruits. It's vital to anticipate threats a company faces in order to be successful. 

Why do a SWOT Analysis? 

When you take the time to do a SWOT analysis, you’ll be armed with a solid strategy for prioritizing the company you wish to invest in. You may think that you already know everything that to succeed, but a SWOT analysis will force you to look at the company in new ways and from new directions. You will be able to look at the company’s strengths and weaknesses, and how it can leverage those to take advantage of the opportunities and threats that exist in the market. 

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