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Strategy - SWOT Analysis: Definition

SWOT analysis is a tool that evaluates a company's internal strengths and weaknesses, as well as external opportunities and threats. Strengths and weaknesses are internal factors within the company's control, such as specialized marketing expertise or lack of new products. Opportunities and threats are external factors outside the company's control, like new distribution channels or new competitors entering the market. While a useful starting point, SWOT analyses can be subjective and different people may interpret the same information differently. Adding weighting criteria to each SWOT factor increases the validity and usefulness of the analysis.

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P Venkatesan
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13 views

Strategy - SWOT Analysis: Definition

SWOT analysis is a tool that evaluates a company's internal strengths and weaknesses, as well as external opportunities and threats. Strengths and weaknesses are internal factors within the company's control, such as specialized marketing expertise or lack of new products. Opportunities and threats are external factors outside the company's control, like new distribution channels or new competitors entering the market. While a useful starting point, SWOT analyses can be subjective and different people may interpret the same information differently. Adding weighting criteria to each SWOT factor increases the validity and usefulness of the analysis.

Uploaded by

P Venkatesan
Copyright
© Attribution Non-Commercial (BY-NC)
Available Formats
Download as DOC, PDF, TXT or read online on Scribd
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Strategy - SWOT analysis

Definition: SWOT is an abbreviation for Strengths, Weaknesses, Opportunities and Threats SWOT analysis is an important tool for auditing the overall strategic position of a business and its environment. Once key strategic issues have been identified, they feed into business objectives, particularly marketing objectives. SWOT analysis can be used in conjunction with other tools for audit and analysis, such as P ST analysis and Porter!s "ive#"orces analysis. $t is also a very popular tool with business and marketing students because it is %uick and easy to learn. The Key Distinction - Internal and External Issues Strengths and weaknesses are Internal factors. "or e&ample, a strength could be your specialist marketing e&pertise. ' weakness could be the lack of a new product. Opportunities and threats are external factors. "or e&ample, an opportunity could be a developing distribution channel such as the $nternet, or changing consumer lifestyles that potentially increase demand for a company!s products. ' threat could be a new competitor in an important e&isting market or a technological change that makes e&isting products potentially obsolete. it is worth pointing out that SWOT analysis can be very subjective # two people rarely come#up with the same version of a SWOT analysis even when given the same information about the same business and its environment. 'ccordingly, SWOT analysis is best used as a guide and not a prescription. 'dding and weighting criteria to each factor increases the validity of the analysis. reas to !onsider Some of the key areas to consider when identifying and evaluating Strengths, Weaknesses, Opportunities and Threats are listed in the e&ample SWOT analysis below(

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