The Value of a S.W.O.T. Analysis
A S.W.O.T. analysis is a tool is one that allows users to determine their prospects for success. The tool examines both positive and negative influences from internal and external factors and then zeros in on a feasible strategy (Cannon, McCarty, Perreault, 2011). It accomplishes this by assessing the strengths (what a business can do well) and weaknesses (what a business cannot do well) in addition to opportunities (potential favorable conditions for the business) and threats (potential unfavorable conditions for the business). Once a S.W.O.T. analysis has been completed it can offer a powerful insight into any potential and critical issues that could affect a venture. This tool can also assist in the development and confirmation of business goals and marketing strategy. Strengths
The strengths quadrants should describe the positive attributes, tangible and intangible, that are within the company. Strengths are within the control of the company. The can include the positive attributes of the workforce such as their knowledge, background, education, credentials, contacts, and reputation. Strengths also include available assets such as available capital, equipment, credit, established customers, channels of distribution, copyrighted materials, and patents. Strengths should capture the positive aspects of the business that provide a competitive advantage.
Just like strengths, weaknesses are also factors within the control of the company. However, the difference is that the weaknesses detract from the ability to obtain or maintain a competitive edge. Weaknesses include limited resources, lack of expertise, lack of access to technology, or a poor physical location of the company. They capture the negative aspects within a business that limit the value and ultimately hinder the competitive advantage. This quadrant should be filled with areas that need to be enhanced in order to compete with the best competitor...
References: Cannon, J., McCarthy, E., Perreault, W. (2011). Basic Marketing. New York: McGraw-Hill.
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