SWOT analysis applied to business management
SWOT analysis applied to business management
Every day we are exposed to moments that involve a choice, sometimes a quick one, and which influences our path in the short and, above all, in the long term. A real challenge, which brands must also respond to. Between interests, goals or the current (and future) stage they are in, there are many factors to take into account to make your choices more effective. One of the most widely used logics in a business context is the analysis of
SWOT
.
What is SWOT analysis?
A strategic planning tool that allows you to analyze the different scenarios in the development of a project.and is therefore essential for decision-making. This analysis makes a complete diagnosis of both the company itself and its environment, so that it runs the fewest risks and maximizes market opportunities.
The matrix
The 4 letters that make up this analysis identify the internal and external, positive and negative elements that companies need to take into account.
- Internal environment (the company has full control of the environment, such as organizational culture, marketing actions, etc.
marketing
or project management):
Strengths
: The strengths of the company such as its differentiating factor in the market, its main benefits, the relationship with employees and consumers or the resources it has;
Weaknesses
: Its weaknesses, which may include lack of resources (financial, logistical, human), lack of specialization of employees, drop in productivity or shortage of materials/technology.
- External environment (the company does not control the environment, so it is essential to be aware of the market in which it operates, responding to challenges and anticipating trends and crisis situations. We can talk about political, economic or environmental issues):
Opportunities
: Market opportunities that are competitive advantages for the company. These could be trends, a new technology, emerging methods or a change in consumer behavior;
Threats
: The threats the company is exposed to, such as new competitors entering the market, new industry regulatory laws, inflation or increasing automation of work.
In conclusion
Through the
SWOT
it is possible to have a complete view of the
performance
(internal and external) of companies, with their strengths and weaknesses. This tool can determine the success of new projects by taking into account all emerging opportunities in the market, as well as risk situations, without ever forgetting the competition. If this is a concept that is not yet clear to you and you do not know how to apply it in your company, do not hesitate to contact us. Talk to us using the form below!
Source: Rock Content; Neil Patel
