OP 11 July, 2024 - 10:51 AM
Hello everyone, I'll be sharing some interesting information about SWOT-analysis with you bit by bit.
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SWOT analysis is an effective strategic planning tool that enables companies to evaluate their strengths, weaknesses, opportunities, and threats.
The acronym SWOT consists of abbreviations of words and stands for the following
S – strengths. Unique characteristics and advantages that allow a business to stand out from its competitors. These strengths enable the company to increase its profit. For example, a wide range of products, good service, more affordable prices, modern equipment, industry leadership.
W – weaknesses. Disadvantages that hinder the company's development, slow down profit growth, and make it more vulnerable to competitors. For example, insufficient number of employees, delivery delays, limited product range, low product quality, outdated equipment.
O – opportunities. Environmental components that can improve the business's position and condition if utilized. For example, qualified employees, proper production location, absence of strong competitors, sponsorship.
T – threats. Environmental components that may harm the company, causing it to lose customers or profit. For example, high competition, financial crisis, unstable situation in the country, emergence of a strong competitor.
Why Is SWOT-Analysis Used?
A SWOT analysis is used to strategically identify areas of improvement or competitive advantages for a company. In addition to analyzing thing that a company does well, SWOT analysis takes a look at more detrimental, negative elements of a business. Using this information, a company can make smarter decisions to preserve what it does well, capitalize on its strengths, mitigate risk regarding weaknesses, and plan for events that may adversely affect the company in the future.
![[Image: ZF7UpZ3.png]](https://i.imgur.com/ZF7UpZ3.png)
If you like this content, let me know in the comments.
Feel free to ask any questions!
SWOT analysis is an effective strategic planning tool that enables companies to evaluate their strengths, weaknesses, opportunities, and threats.
The acronym SWOT consists of abbreviations of words and stands for the following
S – strengths. Unique characteristics and advantages that allow a business to stand out from its competitors. These strengths enable the company to increase its profit. For example, a wide range of products, good service, more affordable prices, modern equipment, industry leadership.
W – weaknesses. Disadvantages that hinder the company's development, slow down profit growth, and make it more vulnerable to competitors. For example, insufficient number of employees, delivery delays, limited product range, low product quality, outdated equipment.
O – opportunities. Environmental components that can improve the business's position and condition if utilized. For example, qualified employees, proper production location, absence of strong competitors, sponsorship.
T – threats. Environmental components that may harm the company, causing it to lose customers or profit. For example, high competition, financial crisis, unstable situation in the country, emergence of a strong competitor.
Why Is SWOT-Analysis Used?
A SWOT analysis is used to strategically identify areas of improvement or competitive advantages for a company. In addition to analyzing thing that a company does well, SWOT analysis takes a look at more detrimental, negative elements of a business. Using this information, a company can make smarter decisions to preserve what it does well, capitalize on its strengths, mitigate risk regarding weaknesses, and plan for events that may adversely affect the company in the future.