What is SWOT Analysis?

SWOT stands for strengths, weaknesses, Opportunities, and Threats. SWOT Analysis is a framework that is used to evaluate the company’s competitive position and develop strategic planning.

A SWOT Analysis examines both internal and external factors of the company i.e., what is going on inside and outside of the company. Therefore, some of these factors will be in your control, and some not. In either instance, once you’ve identified, noted, and considered as many variables as you can, the best course of action will become clearer.

The main aim of a SWOT analysis is to help organizations create full awareness of each and every factor involved in making a business decision.

Internal Factors

“weaknesses” (W) and “strengths” (S) in SWOT refer to internal elements, such as the skills and knowledge you have at your disposal.

Commonly regarded internal factors include the following:

financial elements (sources of income, funding, and investment opportunities)
Physical assets (location, facilities, and equipment)
people resources (employees, target audiences, and volunteers,)
access to patents, copyrights, natural resources, and trademarks
current methods (employee programs, software systems – like CRM Software and Accounting Software, and department hierarchies)

External Factors

External forces impact and influence every company, organization, and person. Regardless of whether a trait is directly or indirectly connected to an opportunity (O) or a threat (T), it is important to pay attention to and note each one.

Typically, external factors are things that neither you nor your business can control. Examples include the following:

commercial trends (technology advancements, new products, and shifts in audience needs)
monetary patterns (national, international, and local financial trends)
Funding ( legislative, donations, and other sources)
Demographics
relations with partners and suppliers
Regulations in politics, the environment, and the economy

Also, See: Job Analysis

SWOT Analysis