Question

Discuss SWOT analysis.

Answer 1

Ans- The full form of SWOT is Strengths, Weakness, Opportunities, Threats and it is used in an organization to analyze its internal strengths, weakness and external opportunities, threats. By identifying the internal strengths, weaknesses, and external opportunities, threats a firm can strengthen its competitive position in the market and take correct decisions and plan for a new strategy. The strengths come from the internal environment of the organization and it can be anything in which the company is good at or like they have a unique product that distinguishes them from their competitors. Weakness also comes from the internal environment of the organization and weakness maybe like a particular thing or area in which the organization is not that good enough and they need to improve on that otherwise they will not be able to compete with their competitors. Opportunities come from the outside environment(i.e external) of the organization and it can be anything like a company can enter a new market easily which will give them opportunities to expand their business and earn more profits. Threats also come from the external environment outside the organization which can harm the organization and it can be like stiff competition from the competitors, sudden rise in the cost of raw materials, etc.

SWOT analysis is a powerful tool which helps an organization to know its strengths, weakness, opportunities, and threats so that any organization can prepare a strategy ahead of time which will help them to stand out in the competition. A company can know its weakness and improve them, they can find opportunities and plan how to take that opportunity for their business growth, they can identify threats and can take measures beforehand so that it does not become an obstacle in their business, and utilize their strengths to take a firm position in the market. It guides a business how should they proceed to take their next step.