Definition of SWOT Analysis
Here is the definition of SWOT Analysis. Firstly, what does SWOT stand for? It is an acronym for S stands for Strengths W stands for Weaknesses O stands for Opportunities T stands for Threats SWOT analysis is an important tool for rapidly establishing the overall strategic position of a business and its environment. It is an important step in helping determine your business strategy and so lead you to your business intelligence strategy. Once key issues have been identified, they feed into business objectives, particularly marketing objectives and goals. Sometimes you can apply it to projects and other ventures. It is a very popular tool with business and marketing professionals because it is quick and easy to learn. It is subjective though and is best done by involving a good cross section of staff and external people, so that you get as complete and objective set of SWOTs. Strengths and weaknesses are Internal factors. For example, cash rich or the opposite - large bank overdraft. For example, People - Skills, Attitude, Training, Knowledge Products - Quality, Price, Life Cycle Operations/Production - Capacity, Flexibility Organisation - Structure, Relationships Systems - Computer, Databases, Monitoring Dashboards Finance - Balance sheet, Cash Flow Reputation - Customer opinion
Opportunities and Threats are External factors. For example, Economy - Strength of Currency Market - Growth/Decline, Fashion Trend Legislation - Pollution, Product Liability, Energy, Healthcare Technology - Substitutes, New Tools, Artificial Intelligence Society - Ageing Population Environment - Recycling, Increased Testing, Protection Opportunities should be grasped and Strengths built upon and maximised. Threats and Weaknesses should be eliminated or minimised.