SWOT Analysis: Strength And Weaknesses

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SWOT analysis is a tool used by businesses to identify their strengths, weaknesses, opportunities and threats in order to measure the performance of the business. The SWOT analysis helps assess issues that affect the business both internally and externally. (http://www.investopedia.com/terms/s/swot.asp - 31 March 2015) Strengths are qualities that are consistent and play a big part in the success of the business. The strengths of the business include what the business specializes in; things that the business can do better than other businesses in the market, the qualities that employees possess, individually and in teams, and are the features that set your business apart from another business.
Weaknesses are qualities that prevent the business
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In order for businesses to be successful they have to build on their strengths, correct their weaknesses, recognize and exploit their opportunities and protect the business against external threats. (http://www.managementstudyguide.com/swot-analysis.htm - 31 March 2015)
It is necessary to conduct a SWOT analysis in order to improve the overall performance of a business by focusing on the strengths of the business, capitalizing on opportunities the business might be presented with, implementing preventative methods to combat threats the business could face, and getting rid of any weaknesses the business might have for business owners to position the business optimally in the market in which they operate. The following are reasons for why it is necessary to conduct a SWOT analysis:
• For the business to determine its capacity as well as their ability to deliver.
• To help business owners to get a broader understanding of the market in which the business operates in,
• For the business to determine strategies to combat any threats that the business might
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However it does not address how the business can identify elements within the business itself (Encyclopaedia of management 6th ed. Detroit: Gale, 2009 p917 Gale Virtual Reference Library. Web: 24 March. 2015). When conducting a SWOT analysis it only covers issues that are considered strengths, weaknesses, opportunities or threats. This is why a more in depth analysis needs to be conducted for more complex issues. This makes it difficult to address factors that business owners might not be certain of. “A SWOT analysis may be limited because it doesn 't prioritize issues, it doesn 't provide solutions or offer alternative decisions, can generate too many ideas but not help you choose which one is best, can produce a lot of information, but not all of it is useful.”(https://www.business.qld.gov.au/business/starting/market-customer-research/SWOT-analysis/benefits-limitations-SWOT-analysis - 28 March
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