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How to do a SWOT Analysis?

Will Six Sigma Be Relevant For The Future
  • A SWOT analysis is a compiling of strengths, weaknesses, opportunities, and threats.
  • The key objective of a SWOT analysis is to help to develop a complete awareness of all the elements involved in making a business decision.
  • The first two categories are internal.
    - Strengths are things that you excel in.
    - Weaknesses are things that you struggle with.
  • The following two categories are external.
    - Opportunities are elements that organization could use to improve
    - Threats are elements that have potential to harm your organization.
  • Using both internal and external data, the technique can direct businesses toward more successful strategies and away from those that have been or are likely to be less successful.
  • Strengths define what a company excels at and what sets it apart from the competition. A strong brand, a loyal client base, a strong balance sheet, unique technologies, and so on are examples of strengths.
  • Strengths
    - What is our competitive advantage?
    - What resources do we have?
    - What products are performing well?
  • Weaknesses prevent a company from reaching its full potential. They are areas that the company must enhance in order to stay competitive. A weak brand, higher-than-average turnover, an inadequate supply chain, and so on are examples of weakness.
  • Weaknesses
    - Where can we improve?
    - What products are underperforming?
    - Where do we lack resources?
  • External factors that can give a company a competitive advantage are referred to as Opportunities. For example, if a country cuts tariffs, a car manufacturer can export its cars into a new market, increasing sales and market share.
  • Opportunities
    - What technology can we use to improve operations?
    - Can we expand our core operations?
    - What new market segments can we explore?
  • Threats are factors that have the potential to cause harm to a business. For example, rising costs for materials, increasing competition, tight labor supply, and so on.
  • Threats
    - What new regulations threaten operations?
    - What do our competitors do well?
    - What consumer trends threaten business?

SWOT Analysis Advantages

  • A SWOT analysis can benefit you to:
    - Work to your strengths
    - Shore up or make allowances for your flaws
    - Take advantage of changes in the marketplace
    - Minimize risk by defending against known threats.

Expert's Comment

  • SWOT Analysis can be done for an organization, for processes, and also for individuals as well.

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