A SWOT Analysis

A SWOT analysis is a way to evaluate a company's position in a market.

It identifies a company's strengths, weaknesses, opportunities, and threats.

A business may conduct a SWOT analysis to assess its performance or develop strategies.

strengths

A strength is an advantage that a company has over its competitors.

It is what a company excels at.

Strengths can include effective management, strong brand equity, or positive company culture.

A strength is an internal factor, which means a company has control over it.

weaknesses

A weakness is an issue that prevents a company from performing at its best.

It is an internal problem of the company.

Weaknesses include debt, outdated technology, or high turnover.

Companies need to address their weaknesses in order to stay competitive.

opportunities

Opportunities are positive factors in a market.

They are external, which means they exist outside of a company.

Examples of opportunities include new technology or customer demographics.

If a company identifies an opportunity early on, it can gain an advantage over its competitors.

threats

A threat is an external factor that could harm a company.

Examples of threats include economic downturn and increased competition.

Companies cannot control threats, but they can respond to them.

By anticipating a threat, a company can minimize its impact.

In a nutshell, a SWOT analysis can help you pinpoint problems and develop relevant strategies.

Questions

Which of the following is an example of a company's stregth?

>brand recognition. 

If a company wants to assess factors that it can directly control, it should evaluate its

>strengths and weaknesses.

To understand what it could leverage and improve, the company conducted an internal analysis of its strengths and weaknesses.

A company's strengths are what it excels and differnentiate it from its competitors.

Having strong brand equity is a strength because it means customer recognition.

If a company is looking to attract new customers, a poor online presence can be a serious weakness.

If a company can leverage an opportunity early on,...

>it can establish a better market position.

What is an example of threat to a company?

>increased competition

E-commerce is a threat to traditional retailers, who have been forced to changed their business models to survive.

A company can improve its market share by anticipating new opportunities and taking advantage of them.

In China, many business consider the Spring Festival as an opportunity to sell more products.

For many restaurants, the rise of healthy eating presents an opportunity to attract new customers by offering new balanced options.

If they don't react quickly to the threat of e-commerce, they will go out of business.

Many companies are investing in cyber security to minimize the threat of cyber-attacks.

Opportunities are external factors that a company can use to grow.