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SWOT Analysis
What Is SWOT Analysis?
SWOT (strengths, weaknesses, opportunities, and threats) analysis is a framework used to evaluate a company’s competitive position and to develop strategic planning. SWOT analysis assesses internal and external factors, as well as current and future potential.
SWOT analysis is an analysis of factors and situations that affect the business operations of the organization. SWOT analyzes both internal and external factors. which will have both supporting factors and other pressure factors which executives can go to develop their strengths and reduce the weaknesses of the business to create sustainable profits in the operation.
1. Strengths are internal and supportive factors – what strengths does the firm have to prevent competitor entry? and factors that the business can control, such as efficient production processes less production waste There are skilled and dedicated employees for the organization. The entity has strong capital and cash flow, etc.
Business competitive points, such as the size of the business network Controlling costs and operating expenses to a minimum Brand identity with loyal customers
2. Weaknesses are internal and depressive factors – things the company is not good at. The business must find a way to reduce the weaknesses of the business. Weaknesses of the business such as The entity has not been doing research and development (R&D) for a long time. The business has poor liquidity. The distribution of products of the business is not efficient, etc.
3. Opportunities are external and supportive factors – factors that cannot be controlled by the entity but are beneficial to the entity. This factor can be leveraged by the business to increase operational efficiency, such as the change in population in accordance with the business’s target audience.
4. Threats are external and stressful factors – these are factors that make it more difficult for an entity to operate, for example a large corporation enters the same business as the entity. change of regulations, laws, etc.
