SWOT analysis is an analytical research and evaluation performed to determine a company’s internal and external factors. Based on this analysis, the management identifies the areas where attention is required, disadvantages, and scopes and reinforces their strategy accordingly. This analytical research is designed to assess the competitive challenges in front of the company so that it can come up with a strategic plan to maintain its position in the industry.
This particular form of analytical research helps identify and reinforce its internal and external factors. The internal factors of an organization include 1) Strengths and 2) Weaknesses. The external factors of an organization consist of its- 1) Opportunities and 2) Threats.
Constituents of SWOT Analysis
Strength represents the excellence of the organization and its positive aspects, which makes it unique and attractive among its competitors. Identifying the factors of strength aids in determining its progress and advantage over its competitors. Analyzing the strengths helps pinpoint the main attraction and specialty of a business. On that basis, the company can make necessary strategic changes in its motto and advertisement.
This is the most critical area of evaluation for a business. A company can suffer heavy costing, loss in its consumer base, and a drastic fall in its conversion rate. This can result due to poor management while running business operations. Therefore, a company must stress on evaluating its internal factors and identify its weaknesses.
Opportunities in SWOT
Opportunities in SWOT are those external factors which are in favour of the company. A business should always be vigilant to not to let an opportunity miss. However, a business can identify its areas of opportunity by evaluating its products, target audience and its competitive position in the market.
Threats in SWOT
Threats in SWOT refers to those external factors which highlight the potential risks and make the business aware of its external challenges and threats, which might impact its growth and put shade on its opportunities.
Tips for Students to Prepare a Successful Swot Analysis of a Business
SWOT Analysis of a Business is a commonly given university assignment. In order to achieve an A grade in this type of assignment, you can seek help from assignment writing services in the UK.
- Explain the important points in simple and brief points.
- After evaluating the internal and external factors of the company, organize all the data from the analysis result in an orderly manner that shows and explains how the factors are affecting the organization.
- Assess the management and evaluate the other criteria of the company from different points of view. Also, check for information from employees and customer reviews.
- A student should perform an SWOT analysis of a company to determine an objective. In simple words, it is important to understand the purpose before performing the analytical research so that once the data is driven out of the result, you will be ready to come up with a strategy to act upon.
- Analyze the progress that the business has made so far and the opportunities which are waiting for it in future, as well as its vision and goals.