SWOT Analysis - Strengths, weakness, opportunities and threats business analysis
A SWOT analysis is an analysis of a business, operation, or an organization by researching, analysing and defining the following four traits of such business or firm:
Strength: this includes the strong points of the business, operation or firm. When analysing strengths the following questions must be asked: what does the business or operation do extremely well? What do customers in particular like about the business and its products? Does the firm have a cost or strategic advantage in its industry?
Weakness: This includes the things that the business or firm does't do well or are behind competitors in terms of operational efficiency, service and products offerings.Weaknesses could also include ability to compete with other competitors and access to strategic infrastructure or assets.
Opportunities: the opportunities both within the business including operations, manufacturing, procurement, culture and outside business and strategic opportunities will be included within this part of the analysis for the business or firm.
Threats: these will usually include industry and competitor positions or actions which could erode business sales and competitiveness. Threats could also be internal such as potential business risk within operations and any possible risks which could impact business profitability.
The SWOT analysis for most operations and businesses will include in depth analysis not only of the business or firm being analysed but also the local, national or international industry, competitors, geographic location and broad economic view in the market the business operates. The analysis once performed is valuable to the strategic plan of the business and can also be used by operations consultants in consulting engagements to quickly understand the business and its surroundings. Consultants are able to perform their own version of a SWOT analysis or a business analysis model which includes many or all aspects of the SWOT analysis.
More lean concepts and terms