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SWOT Analysis is an extremely easy-to-use business analysis tool that analyzes the four specific factors of Strength, Weakness, Opportunity and Threat in order to identify the potential development direction and risks when formulating business strategies.

  1. Strength refers to the company's own strengths, that is, the reason why the company is competitive in the market. Weaknesses are the opposite of strengths, reflecting the company's own weaknesses and potential shortcomings.

  2. Weaknesses are the opposite of strengths, reflecting the company's own weaknesses and potential deficiencies. Some of the conditions are lack of brand awareness, lack of market share, or lack of corporate culture. These two aspects are called intrinsic factors because the factors that affect them are mainly related to the conditions of the company itself.

  3. Opportunity refers to the positive factors that may create a competitive advantage for a company and is usually related to the overall economic environment and government decisions.

  4. Threats, as opposed to opportunities, are negative environmental factors that may be detrimental to a company's growth, such as the success of a competitor's marketing strategy or a spike in raw material prices. These two dimensions are often referred to as external factors, mainly because the factors that affect them are basically related to changes in the external environment.

Reference

SWOT Analysis - An Comprehensive Tutorial

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