What is SWOT Analysis?

SWOT analysis is a basic, straightforward model that provides direction and

serves as a basis for the development of marketing plans. It accomplishes this by assessing an
organizations strengths (what an organization can do) and weaknesses (what an organization cannot do)
in addition to opportunities (potential favorable conditions for an organization) and threats (potential
unfavorable conditions for an organization). SWOT analysis is an important step in planning and its value
is often underestimated despite the simplicity in creation. The role of SWOT analysis is to take the
information from the environmental analysis and separate it into internal issues (strengths and
weaknesses) and external issues (opportunities and threats). Once this is completed, SWOT analysis
determines if the information indicates something that will assist the firm in accomplishing its objectives
(a strength or opportunity),SWOT analysis is a general technique which can be applied across diverse
functions and activities, but it is particularly appropriate to the early stages of planning for a TIPD visit.
Performing SWOT analysis involves generating and recording the strengths, weaknesses, opportunities,
and threats relating to a given task. It is customary for the analysis to takeaccount of internal resources
and capabilities (strengths and weaknesses) and factors external to the organization (opportunities and
threats).SWOT analysis can provide:A framework for identifying and analyzing strengths, weaknesses,
opportunities and threats. This checklist is for those carrying out, or participating in, SWOT analysis. It is
a simple, popular technique which can be used in preparing or amending plans, in problem solving and
decision making. Illustrative diagram of SWOT analysis If SWOT analysis does not start with defining a
desired end state or objective, it runs the risk of being useless. A SWOT analysis may be incorporated
into the strategic planning model. An example of a strategic planning technique that incorporates an
objective-driven SWOT analysis is SCAN analysis. Strategic Planning, including SWOT and SCAN analysis,
has been the subject of much research.
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Strengths:
attributes of the organization those are helpful to achieving the objective.
Weaknesses:
attributes of the organization those are harmful to achieving the objective.
Opportunities:
external conditions those are helpful to achieving the objective.
Threats:
external conditions that is harmful to achieving the objective.SWOT analysis can be used for all sorts of
decision-making, and the SWOT templateenables proactive thinking, rather than relying on habitual or
instinctive reactions.The SWOT analysis template is normally presented as a grid, comprising four
sections,one for each of the SWOT headings: Strengths, Weaknesses, Opportunities, and Threats.The
free SWOT template below includes sample questions, whose answers are insertedinto the relevant
section of the SWOT grid. The questions are examples, or discussion points, and obviously can be altered
depending on the subject of the SWOT analysis. Note that many of the SWOT questions are also talking
points for other headings - usethem as you find most helpful, and make up your own to suit the issue
being analyzed. Itis important to clearly identify the subject of a SWOT analysis, because a SWOT
analysisis a perspective of one thing, be it a company, a product, a proposition, and idea, amethod, or
option, etc.Here are some examples of what a SWOT analysis can be used to assess:
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a company (its position in the market, commercial viability, etc)
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a method of sales distribution
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a product or brand
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a business idea
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a strategic option, such as entering a new market or launching a new product
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a opportunity to make an acquisition
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a potential partnership
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changing a supplier
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outsourcing a service, activity or resource
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an investment opportunity