What is SWOT Analysis
SWOT Analysis is an analysis tool that is used to determine the strengths and weaknesses of persons and businesses and the opportunities available to persons and businesses and threats which can threaten the success of personal and business goals.
It is a major tool for dealing with the uncertainty of the future and to allow one to be able to deal with the winds of change that require you take the right steps, at the right time and go in the right directions.
SWOT is an acronym for strengths, weaknesses, opportunities and strengths. When a SWOT Analysis is done for persons, it is called a Personal SWOT and when it is done for businesses, it is called a Business SWOT. One should examine the uses of this analysis tool.
Benefits of SWOT analysis
- SWOT analysis helps you to get a better understanding of your business as you are about to determine its internal strengths and weakness and the opportunities and threats to its survival. You are able to identify key issues and critical success factors for the successful operations of your business. A personal SWOT can help you to see your strengths and weaknesses and opportunities and threats and so better inform action.
- It is used by organizations as a first step to develop a strategic plan. It is used to help you to bridge the gap between where you are and where you want to be. It can be used by individuals to develop a personal or life plan.
- Sitepoint has a post entitled How to use SWOT to blast your business out of complacency. This movement is sometimes necessary when the recession threatens to destroy your business operations. By clinically examining your business you may be able to see its weaknesses more clearly and understand why the competition has been making inroads into your market. You can then determine actions to rectify this.
- It can also help you to develop a proper marketing plan. How to do SWOT analysis in marketing is an excellent post.
- If you are thinking of moving your household to another location, do a SWOT of that location. Look at the impact of the change in your lifestyle, that of your children, etc. What are the strengths of the location, its weaknesses, etc?
- It can also be used when you have to make a decision between two possible job opportunities.
- Use SWOT to determine how your business is positioned vis a vis the competition. This can cause you to develop and implement strategies to improve your relative position vis a vis the competition. Always spend time studying the competition, their strategies, etc.
- Another use of SWOT Analysis is to effect changes in your business operations, be it to respond to new trends or changes in competitors’ operations that are negatively affecting you.
So are you sold on the use of SWOT analysis as an analysis tool?
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