SWOT Analysis

What does the SWOT identify?

SWOT identifies the strategies used for creating a specific business model according to the company's available resources and capabilities, including the environment in which the company operates.

SWOT Analysis (defined)

a formal framework of identifying and framing organizational growth opportunities

Strength (defined)

describes what an organization excels at and separates it from the competition: things like a strong brand, loyal customer base, strong balance sheet, unique technology, and so on

External Factors of the SWOT analysis

opportunities and threats

Threat (defined)

refers to factors that have the potential to harm an organization. Common threats include things like rising costs for inputs, increasing competition, tight labor supply, and so on. Whether can also be a threat for agricultural businesses

Opportunity (defined)

refers to favorable external factors that an organization can use to give it a competitive advantage. For example, a car manufacturer may be able to export its cars into a new market, increasing sales and and reaching untapped consumers

Weakness (defined)

stop an organization from performing at its optimum level. They are areas where the business needs to improve to remain competitive: things like higher-than-industry average turnover, high levels of debt, or no social media presence

Internal Factors of the SWOT analysis

strengths and weaknesses

What does SWOT stand for?

strengths, weaknesses, opportunities, threats

SWOT Downfall:

A word of caution, SWOT analysis can be very subjective