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Here is the definition of SWOT Analysis.
It a way of businesses or organisations to analyse their situation and decide actions to improve their position by looking at their internal Strengths and Weaknesses and external Threats and Opportunities.
What does SWOT stand for? It is an acronym for
SWOT analysis is an important tool for rapidly establishing the overall strategic position of a business and its environment.
It is an important step in helping determine your business strategy and so lead you to your business intelligence strategy.
Once key issues have been identified, they feed into business objectives, particularly marketing objectives and goals.
Sometimes you can apply it to projects and other ventures.
It is a very popular tool with business and marketing professionals because it is quick and easy to learn. It is subjective though and is best done by involving a good cross section of staff and external people, so that you get as complete and objective set of SWOTs.
Strengths and weaknesses are Internal factors. For example, cash rich or the opposite - large bank overdraft. For example,
Opportunities should be grasped and Strengths built upon and maximised. Threats and Weaknesses should be eliminated or minimised.
Strategy making is not about establishing a link in your market conditions and your existing capabilities to find the best way forward. It’s about making choices and taking risks to get where you want to be.
How does the definition of SWOT analysis fit into this framework?
Roger L. Martin is a professor at and the former dean of the Rotman School of Management at the University of Toronto. He is a coauthor of Playing to Win (Harvard Business Review Press, 2013) thinks it is better to consider five questions as below. He takes a capability driven approach.
Read more from Roger Martin Building a Strategy
His preferred approach is to treat strategy- making as developing a set of answers to five interlinked questions. The questions — which cascade logically from the first to the last.
Use these questions to find a place where-to-play and how-to-win — then do SWOT analysis on that area.
The questions are as follows:
Click here to see SWOT examples