SWOT Analysis
SWOT Analysis is a strategic planning tool used to evaluate the Strengths, Weaknesses, Opportunities, and Threats involved in a project or business venture. It involves specifying the objective of the business venture or project and identifying the internal and external factors that are favorable and unfavorable to achieving that objective. The technique is credited to Albert Humphrey, who led a convention at Stanford University in the 1960s and 1970s using data from Fortune 500 companies.
The SWOT analysis is a simple but powerful tool for understanding a business’s overall situation. It can be used to identify both the strengths and weaknesses of a business, as well as the opportunities and threats it faces. By understanding the internal and external factors that affect a business, managers can make better decisions and develop strategies to capitalize on strengths and minimize weaknesses.
Comparison Table
| Strengths | Weaknesses | Opportunities | Threats |
|---|---|---|---|
| Internal factors that give the business an advantage over its competitors | Internal factors that put the business at a disadvantage relative to its competitors | External factors that the business can take advantage of | External factors that could put the business at a disadvantage |
Summary
SWOT Analysis is a useful tool for understanding a business’s overall situation. It can be used to identify both the strengths and weaknesses of a business, as well as the opportunities and threats it faces. By understanding the internal and external factors that affect a business, managers can make better decisions and develop strategies to capitalize on strengths and minimize weaknesses. For more information about SWOT Analysis, visit websites such as Investopedia, Business News Daily, and Entrepreneur.
See Also
- PEST Analysis
- Five Forces Analysis
- Value Chain Analysis
- Competitive Analysis
- Gap Analysis
- Break-Even Analysis
- Cost-Benefit Analysis
- Risk Analysis
- Portfolio Analysis
- Benchmarking
