SWOT Analysis is a strategic structured planning tool used to identify key parameters related to any business, product, person, place etc.
The key parameters covered under SWOT Analysis are:
- Strengths: Under this section those parameters are identified which are considered to be the key strengths for any organization or person compared to their competition
- Weaknesses: Under this section those parameters are identified where any organization or person is weaker compared to their competition
- Opportunities: Under this section those parameters are identified which any organization or person can exploit to gain advantage over their competition
- Threats: Under this section those parameters are identified which can prove to troublesome for any organization or person
Strengths and weaknesses in SWOT Analysis are considered internal factors which can be controlled by an organization while opportunities and threats are considered external factors.
Strengths are directly correlated with opportunities as the are the factors which an organization can leverage to improved its business. Weaknesses on the other hand are directly connected to threats as these are the factors which competitors can use to cause damage to any organization's business.
What are the key benefits of SWOT Analysis?
- Strategy Creation: Using SWOT analysis businesses can create better strategies to achieved business goals.
- Gain Competitive Advantage: SWOT analysis can be used to gain better understanding of your business as well as of your competitors. This can bring forth areas where competition is weak and which can be exploited by your organization to improve your business.