SWOT Analysis Definition
SWOT analysis, also known as the strengths, weaknesses, opportunities, and threats analysis, is a strategic planning tool used by businesses to identify and evaluate the internal and external factors that can affect the organization.
The analysis involves assessing the company’s strengths, which are the advantages it has over competitors, and weaknesses, which are the areas that require improvement. The analysis includes examining the company’s resources, capabilities, and core competencies.
The second part of the SWOT analysis involves assessing the environmental opportunities and threats that will most impact the organization. This process requires identifying potential opportunities that the company can capitalize on, as well as any potential threats that may affect its success. These external factors can include market trends, economic factors, regulatory factors, and competition.
The SWOT analysis provides a comprehensive understanding of the company’s position in the market and helps the organization to develop a strategic plan to leverage its strengths, overcome its weaknesses, capitalize on its opportunities, and mitigate potential threats. This analysis is a valuable tool for making informed decisions about the future direction of the business.
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