SWOT Analysis

What is a SWOT analysis ?

A decision making tool used to help a company to investigate their strengths, weaknesses, opportunities and threats

What are the strengths of a business?

internal factors which help a business reach its objectives - e.g, USP - unique things about a business

What are the weaknesses of a business?

internal factors which prevent a business from reaching its objectives - may be business leadership/flaws in goods/services sold

What are the opportunities of a business?

external business opportunities which an help the business to reach its objectives - used to discover market trends/demand for products/goods

What are the threats of a business?

External problems which prevent a business from reaching its objectives (PESTLE)

Strengths of using SWOT analysis

• can be used to formulate a strategy for growth - used to compete and defend a business

• used to decide when to treat and when to retreat from a market - enter and leave a market

Drawbacks of using SWOT analysis

• questions can be raised if performed by internal members - internal members can conceal information leading to an inaccurate SWOT analysis

• can quickly become out of date - particularly in rapidly changing markets