Companies need to understand the changes in their business environment for them to achieve business goals. SWOT analysis is often used for strategic decision-making by enterprises. In strategic planning, SWOT should be regarded as a commonly used analysis method, Strength – competitive advantage, Weakness – disadvantage, Opportunity, Threat.
Strengths and weaknesses are the internal factors of the company (products), which are affected by factors such as product quality, materials, personnel, machines, channels, and services.
Opportunities and threats are the external factors of the company (products) and are affected by the market, economy, society, and policies.
The analysis of SWOT guides organizations to identify the strengths, weaknesses, opportunities, and threats of the product. Only by better understanding oneself, understanding the opponent, and understanding the environment can one remain more adaptive and responsive to the changes faster and better.
SWOT Analysis at a glance
The figure below shows a simple SWOT Analysis template:
