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