SWOT analysis

SWOT Analysis:

A SWOT Analysis is a strategic tool used in decision-making to assess and evaluate an organisation's internal strengths and weaknesses, as well as external opportunities and threats. It helps businesses gain insights into their current position and make informed decisions for the future.

• Strengths (S): These are internal attributes or capabilities that a company excels in. Strengths highlight areas where the organisation performs well and can give it a competitive advantage. Examples include a strong brand image, a loyal customer base, or efficient internal processes.

• Weaknesses (W): Weaknesses are internal aspects in which a company lags or performs poorly. Identifying weaknesses is essential for improvement and growth. Examples can include outdated technology, low employee morale, or product quality issues.

• Opportunities (O): Opportunities are external factors or conditions that the organisation can leverage to its advantage. They represent potential avenues for growth and profitability. Examples include entering a new market, launching innovative products, or capitalising on a competitor's weakness.

• Threats (T): Threats are external factors or risks that could negatively impact the organisation's performance and objectives. Recognising threats allows the organisation to prepare and mitigate potential challenges. Examples include new competitors entering the market, economic downturns, or changing regulations.

A SWOT analysis serves several purposes in decision-making:

• Identifies areas for improvement within the organisation.
• Helps in planning for future scenarios and developments.
• Highlights potential opportunities for growth and expansion.
• Allows for the formulation of strategies to address emerging threats.