SWOT is a planning method used to evaluate the Strengths, Weaknesses, Opportunities, and Threats involved in a particular direction for any business. Why & How SWOT analysis is conducted? How to use it & how it can be evaluated?:-
- SWOT Technique was developed Albert Humphrey at Stanford University.
- SWOT helps to position products and services against competitors and to plan for potential future threats.
- SWOT can be used as a precursor to developing strategic plan.
- Strengths, Weaknesses, and Opportunities are internal or external while threats are almost external to business.
- SWOT is a brainstorming activity and key employees should always be involved in the process.
- SWOT analysis takes into account other areas of business such as Market Share, Customer Service, Marketing Effectiveness, and Financial Strength.
- It helps in making decision to invest in the new product or to consider other revenues to increase revenue.
- SWOT may also be used in any decision-making situation.
- SWOT helps to chalk out future plans by using past and current data.
- SWOT does not provide any guidance to rank each of the elements under Strengths, Weaknesses, Threats and Opportunities or set priorities.