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Submitted by 3dees on February 10, 2008
Category: Miscellaneous
Words: 2204 | Pages: 9
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INTRODUCTION
Swot analysis is "A process of monitoring both internal and external changes which will ensure company awareness and assist in the prediction of future trends. It matches company capabilities with the wants of the customer and isolates restraining influences."
A SWOT analysis considers the strengths and weaknesses of the business and its current strategy, and the opportunities and threats the business environment may present the firm with in the future.
SWOT analysis can be a very useful way of summarising many of the other analyses and combining them with the key issues from environmental analysis. The aim is to identify the extent to which the current strategy of an organisation and it's more specific strengths and weaknesses are relevant to and capable of dealing with, the changes taking place in the business environment.
This simple technique provides a method of organising information in identifying possible strategic direction. The basic principle of SWOT analysis is that any statement about an organisation or its environment can be classified as follows:
In SWOT, strengths and weaknesses are internal factors. For example:A strength could be:
• Your specialist marketing expertise.
• A new, innovative product or service.
• Location of your business.
• Quality processes and procedures.
• Any other aspect of your business that adds value to your product or service.
A weakness could be:
• Lack of marketing expertise.
• Undifferentiated products or services (i.e. in relation to your competitors).
• Location of your business.
• Poor quality goods or services.
• Damaged reputation.
In SWOT, opportunities and threats are external factors. For example: An opportunity could be:
• A developing market such as the Internet.
• Mergers, joint ventures or strategic alliances.
• Moving into new market segments...
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