Business Question re: SWOT?

Does anyone what are the components of a SWOT analysis and why is it important for a company to conduct this type of analysis?

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  • 1 decade ago
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    SWOT, is strength, weakness, opportunities and threats. To conduct a swot analysis and create strategies, one should first figure out ones own companies strength and weakness, from this transit to value chain. Then one figures the opprtunities and threats and transit to find out the five threat areas like, new entrants, markets, regulations, substitutes, government etc;. Now you have two streams of transitions with enough information. Using these two streams one transits to story writing about the whole marketing program something like a case study. Once this is over one transits to create emerging strategies and to a comprehensive strategic plan.

    Take a pen and paper and draw out the transitions starting with sw and ot moving to value chain and five threats then both transiting on to story telling and it moving to emerging strategies to strategic plan.

  • It stands for Strength,Weakness,Oppurtunities ,Threats.

    When you start a business these are the basics that you need to Analyse.

    Strength.

    What is your strength.How will your strengths help your business.May be you already have an established marketing network.May be you are the first and only producer of a product in your area.

    Or such similar things.

    Weakness

    List your weaknesses.

    May be you don't have enough working capital.May be you don't have enough manpower to run the business.

    Or such similar things.

    Oppurtunities.

    What are the oppurtunities for your business?

    Take for example you want to start an online shopping website in India.What are the oppurtunities to succeed,India being one of the largest markets for almost all goods?

    Could you focus on a niche market?

    Or such similar things.

    Threats

    What are the threats you face in starting a business?

    Take the previous example.

    What if you build a successful system and then bigger companies,say like E-bay capture your market.

    What if the government imposes certain restrictions making it unprofitable to run the business?

    Or such similar things.

    Once you are satisfied, that after the SWOT analysis, you can still succeed in the business,only then should you start it.

    I wish you all the best in your ventures.

  • 1 decade ago

    SWOT is an acronym. S is for strengths, w is weakness, o and t i cannot recall. You do an analysis to assess the company from an outsiders' standpoint. Any business management text can give you an in depth explanation.

    Source(s): Business mgt student CSUEB
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