In: Finance
SWOT is a abbreviation of “strengths, weaknesses, opportunities and threats”. SWOT is being used for the analysis of company’s position ie. its strengths and associated weaknesses under the various opportunities provided by the external factors like government and industries and threats forced on the company by the external evils. The strengths and weaknesses can be measured as the management is having control on the company, but the opportunities and threats could not be measured towards volumes and effects.
The company uses its strengths and overpowering the weaknesses to utilize the growth opportunities so provided with protecting its benefits from the threats insight externally.
Strengths associated with company could be its product, huge capital base, good management, etc.
Weaknesses which a company can posses are low capacity, lacking labor supports, no control on material, etc.
Opportunities so provided new markets, increase in capacity, new sources of materials, etc.
Threats refers to increase in government taxes, destruction of corps, rise in cost of inputs, etc.