SWOT analysis stands for Strengths Weaknesses, Opportunities, and Threats, and is a strategic planning and development method that is used in the business they are involved in or a project they are preparing. It involves lots of planning, identifying the objective of the project or business venture and looking at the external and internal factors that affect it.
Swot is a very useful tool for learning and getting knowledge on decisions making that is important for the business growth. Most business men apply this model of thinking for their businesses and it has bore many fruits. This is because it provides a frame work for looking at the strategy, where the business is at and for looking at the future prospects of the business. This is very important once the idea is to be put into action.
What’s more is that Swot are easy to compose. Completing one is very simple and that is why it’s mostly done in workshop sessions and in brainstorming meetings. They work best as it gives people a chance to think and express their views well. This is because the plans set there can be revised later corrected or even can be stored for future reference.
Swots can also be used for evaluating your competition. This will help greatly to keep track of how your competitors are performing, improve on your lose ends and even make good changes that will impact positively. If your competitors are still lagging behind it’s also a good time to draw future plans that will work for you. This helps to keep you at arms length at what goes on around you and come up with the best laid plans for your business.
Swots analysis is also a good tool to use to look at your market. Market evaluation can be done well using swots. It will look at the strengths in their market, its Weaknesses, the opportunities it has to grow or expand and threats arising in their markets. There are essential in judging the market by knowing whether its time to expand or specialize on some thing that will bear more fruits.
The Swot analysis is a subjective review of information which is arranged chronologically by the Swot format to help in the conceptualizing, presentation and making of various decisions. These are the dimensions one should look at. This is because they are useful in determining the pro’s and cons in a basic two heading. That is why every business needs to be doing a Swot analysis for growth and better tidings for their business.