SWOT Analysis (Strengths, Weaknesses, Opportunities and Threats Analysis)

SWOT analysis (Strengths, Weaknesses , Opportunities and Threats ) analysis is a framework for the identification and analysis of internal and external factors that can have an impact on the profitability of a project , product, place or person.

The framework is tested credited to Albert Humphrey, who to approach in the 1960s and 1970s at the Stanford Research Institute (SRI ) . Designed for companies and based on data from Fortune 500 companies , the SWOT analysis has been adopted by organizations of all kinds as an aid to decision-making.

Here the 4 part of SWOT :

Strengths

 What are your advantages ?
 What do you know ?
 What relevant resources you have access to?
 What other people as your strengths?

Consider this from your own point of view and from the point of view of the people you employ. Do not be modest. Be realistic . If you have any problems with this attempt to write down a list of characteristics of your company. Some of these will hopefully be strengths!
In looking at your strengths , think about them in relation to your competitors - for example, if all your competitors provide high quality products , then a high quality production process is not a strength in the market, it is a necessity.

Weaknesses

 What could you improve ?
 What do you know to do bad?
 What should you avoid ?

Again, keeping this from an internal and external point of view : Do other people seem to weaknesses that you do not see , perceive ? Are your competitors doing better than you? It is best now to be realistic , and face any unpleasant truths as soon as possible .

Opportunities

 Where are the good opportunities in front of you ?
 What are the interesting trends you are aware of ?

 Can use possibility of such things as are

 changes in technology and markets on both a broad and narrow scale
 changes in government policy in your field
 Changes in social patterns , population profiles , lifestyle etc.
 Local Events

A sensible approach to get opportunities is to look at your strengths and ask yourself whether these open up any opportunities. Alternatively, look at your weaknesses and ask yourself whether you could opportunities by opening them.

Threats

 What are the obstacles you face ?
 What is your competition?
 Are the data required for your job, products or services changing?
 Is changing technology threatening your position ?
 Do you have bad debt or cash-flow problems ?
 Can any of your weaknesses seriously threaten your business ?

The implementation of this analysis will often be illuminating - both in terms of pointing out what needs to be done , and in the implementation problems into perspective .

Conclution : Once the SWOT factors are identified , should better determine makers in a position to whether the project or goal is worth pursuing and what is needed to make it successful . Is often expressed in a two - by-two matrix , aims the analysis to an organization meet its resources on the competitive environment in which it operates.