What is SWOT Analysis? Is an abbreviation for Strengths-Weaknesses-Opportunities-Threats. It is a tool widely used as an integral part of the strategic planning process.
There are many ways how a SWOT analysis is used. I do not intend to compare the differences, but to share how I used in my workshops in Strategic Planning.
Strength
This is an internal factor refers to the force in the operation. It is internal because it takes into consideration the level of competition for its internal capacity. Many factors in an operation that can be considered as strength. Usually highlighted during brainstorming among the members of the management. When the list of factors is too strong, then it should be grouped using the method of stratification. Then, reduce from three to five items using appropriate tools, such as multiple voting, etc. networks Once selection is made, rank these items by comparing the company with the best competitors. Strength of classification is used at some point an alternative to multiple voting.
Weaknesses
Similar to the previous one, is an internal factor relates to the weaknesses of the operation taking into account the level of competition in comparison with its best competitors. With deficiencies identified through the brainstorming, the factors that might be too many. When the list of factors to failures too, then it should be grouped using the method of stratification. Then, reduce from three to five items using appropriate tools, such as multiple voting, etc. networks Once selection is made, rank these items by comparing the company with the best competitors. Strength of classification is used at some point an alternative to multiple voting.
Opportunities
This is an important factor to identify opportunities as a result of external influence. It often leads to more business investment, as well as opportunities for innovation in products and services. Because it is external, using many assumptions. However, given the limitations, you should try to quantify the cases holding that this factor is real. Application in real life, there are cases in which the opportunities arising from the operation of the park are in this section. With reason, it may be another way that became a force in place ..
Threats
This is another important and crucial for addressing a. It has a great influence to the success or failure of an organization if not treated properly. This section looks for factors that may put an organization at a loss-loss of the sample can reduce market share or profitability. Once again, as it is an external factor, the reality is assumed. However, in many cases can be verified by ad, publications etc. On the other hand, if organizations act on these factors can not always mitigate the threat because the threat is not real. One example is the Y2K problem.
