SWOT study is known as a key component in strategic planning.
The SWOT analysis gives information and facts which can be beneficial in coordinating the organisation’s Resources as well as skills to the intense in which it operates. Because of this, SWOT study is known as a key component in strategic planning.
Strengths are considered primarily internal. An organisation’s strengths are generally its resources as well as level of expertise that can easily be applied as a foundation for building a competitive edge. Examples of this sort of strengths consist of:
- Dominant brand names
- Patent rights
- Reliable and strong customer base
- Superior track record among customers
- Value added benefits
- Unique resources
- High access to distribution networks
Weaknesses are also in most cases considered internal and are the variables you simply must tackle to operate a productive business.
The lack of effective utilization of certain strengths may be seen as weaknesses. Examples of this sort of weaknesses consist of:
- A poor brand identity
- Absence of patent protection
- Weak track record among customers
- High-cost framework
- Lack of accessibility to the best resources
- Lack of access to key distribution networks
In some situations, weaknesses may possibly be an opposite side of strengths.
Opportunities considered primarily external. The external environmental study may discover a number of fresh opportunities for financial gain as well as expansion. A few of such opportunities include:
- An unsatisfied customer need fulfilment
- Arrival of modern technological innovation
- Withdrawal of international trade limitations
Threats are also considered mainly external. Threats coming from outside of the business will directly affect the organisation, and you may have very little control over them.
A few examples of this sort of threats include:
- Changes in consumer preferences
- Breakthrough of substitute products and solutions
- Strict trade boundaries
- Completely new rules and regulations