Definition of SWOT analysis and the principles on which it is based
The idea of balancing strength and weakness in relation to the analysis of the company's activities is not new, but in the 1970s a new method appeared (its author is Albert Humphrey) to supplement the method with the study of factors related to external and internal influence. This is how SWOT analysis of companies appeared, which helps not only to determine all positive and negative factors, but also the levels of their impact. Knowing the opportunities and threats helps to predict the consequences of their influence.
SWOT analysis is a method of assessing a company. But it can be kazakhstan mobile database applied to a product, to a business idea. If you have enough information, you can use it to analyze competitors.
How the SWOT analysis matrix works
This method involves constructing a matrix, the components of which are encrypted in the abbreviation:
S - strengths, these are all competitive advantages, factors due to which a company can increase sales and expand its presence in the market;
W — weaknesses (from Weakness), that is, shortcomings, what the company is inferior to its competitors in, all the factors that hinder its development;
O — opportunities (or Opportunities), those factors that are related to business development or the competitive environment, which the business cannot directly influence, but uses for its own purposes (for example, the emergence of digital technologies that it can implement);
T — threats (or Treats), and these are external factors that do not depend on the decisions made by the company's management; this is how they differ from weaknesses, with which the company's management can do something.