SWOT Analysis Matrix Infographics

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SWOT is an acronym of (Strengths, Weaknesses, Opportunity, and Threat). Therefore, SWOT analysis is actually a way to identify and summarize all aspects of the conditions internal and external to the enterprise, and then analyze all these four aspects facing the organization. SWOT analysis can help companies gather resources and actions to maximize their strengths and opportunities, and make their strategy clearer and more effective.

What is SWOT Analysis?

The analysis of strengths and weaknesses mainly focuses on the competitiveness of an enterprise in comparison with its competitors, while the analysis of opportunities and threats focuses on the changes in the external environment and its possible impact on the enterprise.

In the analysis, all the internal factors (i.e., strengths and weaknesses) should be brought together, and then these factors should be evaluated by external forces.

Strengths and Weaknesses

When two enterprises are in the same market, or both have the ability to provide products and services for the same customer group, if one enterprise has a higher profit potential, then we believe that it has a greater competitive advantage than the other enterprise.

In other words, the so-called competitive advantage refers to the ability of an enterprise to surpass its competitors and help the enterprise achieve its main goal (such as profit). But it's important to note that competitive advantage doesn't necessarily translate into higher returns, as sometimes a company's desire to increase market share is one example.

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