SWOT analysis is an evaluation of an organization`s internal strengths (S), weaknesses (W) and the opportunities (O), threats (T) of its external environment. It is important to evaluate these factors in order to elaborate strategy which is appropriate to the internal and external environment of an organization. This is also important as it gives a chance to use strengths and opportunities to reduce weaknesses and avoid threats.
Thank you so much Dr. Sahakyan. I appreciate your prompt response to my question. The information you provided is very useful.
Regards,
MO.
There is no doubt that SWOT has been used as a strategic tool by numerous top organizations.
Interestingly, there is a growing trend among some of the top MNCs of letting go of SWOT analysis as they consider it to be an outdated model and have replaced it with dynamic strategic management models.
the SWOT analysis is one of the most commonly used planning tools in the business world. It evaluates the situation of the business and the scenario in which it is inserted to understand the right way forward.
Thank you so much Prof. Marcelo Tsuguio Okano. I quite appreciate your response.
Jackie Stavros and I wrote the attached book chapter in Competitive Advantage: Strategies, Management, and Performance (2017). This chapter is an alternative to the SWOT approach and may be of interest to you!
CC
Thank you so much Prof. Cam Caldwell. The attached document is very useful.
Regards,
MO.
Modestus Okwu SWOT Analysis is of one of the oldest techniques that companies use to compare their products/services/brand with the products/services/brand of competitors. It is also done to identify the market gap, Actually SWOT is Strengths, Weaknesses, Opportunities and Threats which a company has compared to its competitors.
Here is the practical illustration of the implementation of SWOT analysis. I hope you will find it useful.
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Its very old technique but with discussion with very senior corporate professionals and more than 20 successful startup founders, I realized that there is no better substitute of it because of its ease of implementation and understanding . Some companies also use porter 5 forces model and other KPIs bench marking related techniques for that if you want to explore if further study the Aaker, Kumar and Days books of market research 2009 ( Chapter of Business intelligence ) Market Base Performance and Processes base performance benchmarks.
Performing a SWOT analysis helps one thoroughly understand the business by presenting a viewpoint of the company's operations from a different angle. For new businesses, this analysis is critical to the organisation's planning process. It can, however, be performed at any time. A company's unique “SWOTs,” as they are often referred to, will help get a new business on the right track.
Thank you so much Muhammad Farooq and Faisal Khalil for your vital comments and useful information. I really appreciate...
SWOT measures the current state of the organization. SW measures the internal capabilities of the organizations of which the organization can do something about, it has control over. For example low salaries, poor structures/facilities. The organization can do something about this. The OT measures the external environment of which the organization has no control over. It has no powers over. For instance calamities, policies by government that can affect the organization positively or negatively.
Basically SW are internal environment analysis and OT are external environment analysis that has teh main objective of determine the strategic advantages based on the capabilities and capacities exiting and future needs; and the strategic challenges from the external environmental factors. Both of these internal/external environment analysis uses other models to determine the overall SWOT. The bottom line is that the overall Strategic SWOT comes from the utilization of internal models like Value Chain analysis, Capabilities analysis and 5/7 forces model, BPEST/PEST etc. etc for external environment analysis. These models culminate in determining the SW + OT advantages and challenges of the organization. Take a look at one of the book that I had written in the research gate
Thank you so much Jacob Jeketule Soko and Teay Shawyun for your insightful contributions.
To know your exact situation internaly and externaly and each strategic modle will be clear in implementing your strategic process
Swot analysis is very important in marketing research, gives you an accurate analysis of your company's situation as well as a situation of the external environment.
SWOT analysis also assists you to understand the opportunities that your organisation can take advantage of to expand its business. Further, it also helps an organisation to unpack the threats and develop strategies to translate them into opportunities.
Dear Sebastian Birzu and Julius Kampamba,
I have noted your comments with delight. Thank you so much for your insightful contributions.
SWOT analysis is an essential step to know your situation, helps you to proceed further and guide you to be on the right track.
Dr. Dawood Ahmed Mahdi,
Thank you so much for your contribution. Your comment is useful and noted with great delight.
“SWOT” is an acronym that stands for strengths, weaknesses, opportunities, and threats. Strengths and weaknesses are internal to the company, meaning they’re things that you as a business owner have the power to change. Opportunities and threats are external issues that are outside the scope of your control but which can impact your operation for better or worse.
SWOT analysis is the fastest way to ascertain the state of the business at the time set in the macro. As a basis, which can be more detailed, can be filled in with details in detail.
Thank you so much Skender Buja . The information you shared on SWOT analysis is noted.
I appreciate all insightful contributions shared so far. Thank you all.
In addition to what the colleagues said, without repetition.
I think it is necessary to take care and focus on two important concepts that determine the accuracy and effectiveness of SWOT analysis (Environment time, context).
Environmental Time: SWOT analysis analyzes the internal and external environment at present.
While it is possible to use it to analyze the future environment contrary to what some have gone. (By creating and predicting the future environment and then conducting a quadratic analysis based on that prediction).
Context: This is confirmed in my writings, both the environment and concepts do not come abstract from the environment, but be misleading without it. Therefore, the context of the environment should be emphasized during the SWOT analysis. For example, if a company has a large number of employees who do not have an education certificate, this number is a strength point for high-tech, technology-intensive companies.
While a strength point for physical exertion companies.
A weak point if the context of the austerity environment
The strength point if the context of the investment environment.
And so on.
Conclusion; do not rely on SWOT environmental analysis without bringing the environment of time and context
ALI A. Naeem
It is an acronym for Strength Weakness Opportunities and Threat. It helps in adequate understanding of the opportunities which can help expand a company.
SWOT analysis stands for strengths, weaknesses, opportunities and threats. This is a type of analysis or research that a company will study to learn about another company.
We can also define SWOT analysis as a form of analysis which concentrate on the most important factors affecting your business
Thank you Adedoyin, SWOT analysis is very useful in any work system or business environment.
The SWOT analysis is often used as an element of various analytical studies describing the economic and financial situation and prospects for the development of enterprises, public institutions and other entities due to its universal character and simplicity. It is one of the simplest analytical methods used to diagnose strengths and weaknesses of the functioning of a specific entity as well as opportunities and threats to the development of the analyzed enterprise. Therefore, the SWOT analysis is part of such studies as the creditworthiness analysis, business plan, prospectus, analytical report prepared for the analysis of investment project opportunities and risks, strategic plan, marketing plan, due diligence, analysis of fundamental investment in securities, process analysis risk management in the enterprise, an innovative start-up development plan, etc.
"SWOT" analysis represents instant and quick evaluation of an enterprise or business, for their analysis or evaluations during any research or project. There is no result of any deep research, but an analysis based on the data of the moment when we owe this assessment. This does not mean that this SWOT analysis is of no value, in some cases it can greatly help in determining the contours basic to a research problem for a business. This is the assessment of the purpose and importance of SWOT analysis. If this helps you, then I am satisfied.