SWOT is one of the steps of the Strategic Marketing Process. It is an effective way of summarize the situation of an organization. SWOT analysis is an acronym that means an organization analysis of its Strengths, Weaknesses, Opportunities, and Threats.
Analyzing the strengths of the organization means identify what internal characteristics this organization has that the concurrence hasn’t, for example its prestige, or its diversity. Analyzing the weaknesses of the organization means analyzing what characteristics of the company will decrease the value of this company; for example a bad service from the employees. Analyzing the opportunities of the company means analyzing the external factors than can be favorable to the organization such as an increasing of the demands, or a good advertisement from another company (partnership). And finally analyzing the threats of the organization means analyzing the external factors than can stop or brake the company’s development, such as a financial crisis, or an increasing competitions.
The SWOT analysis is very important because the company’s action that must be taken may derive from this analysis. Like said in the book, the actions can be taken:
And be built on a strength of the firm.
To correct a weakness of the firm.
To exploit an opportunity.
To avoid a threat.
The internal factors can be weaknesses or strengths depending of their impact on the organization goals. In fact, a factor can represent a weakness for