Marketing Management

DEFINING SWOT

SWOT analysis basically includes strengths, weaknesses, opportunities and threats of a company. SWOT analysis includes both internal as well as external factors which are negative as well as positive. This analysis helps both in planning as well as taking decisions. The SWOT method is sometimes referred to as TOWS was initially for businesses but can be used for educational purpose or even when evaluating personal growth. The reason why it used the most despite there being other methods for analyzing is because in can be applied to various levels in an organization and also because it is very simple.

USING SWOT ANALYSIS

A SWOT analysis can be used at any stage of a business for any decision. It can help in taking a new decision by highlighting the issues as well as the opportunities. Gives clear directions as to what decision should be taken in the future. What opportunities should be explored and how threats should be minimized. Helps in setting proper goals. SWOT analysis helps in organizing information and provides information as to how efficiently the business is operating.

THE ELEMENTS OF A SWOT ANALYSIS

A SWOT analysis has four components which are strength, weaknesses, opportunities and threats. The purpose of SWOT analysis is to highlight the positive aspects of a business and to tackle with the problems of it. It includes both positive and negative aspects and both internal and external factors. The strengths and weaknesses and internal factors and opportunities and threats are external factors. The positive aspect of this analysis would be the strengths and the opportunities and the negative aspect would have to be the weaknesses of the company as well as the threats faced by the company.