. A SWOT analysis is a great first step in identifying areas of opportunity and risk—which can help you create a strategic plan that accounts for growth and prepares for threats.
is a simple yet effective strategic planning chart with four quadrants that allow you to identify the strengths, weaknesses, opportunities and threats of your organization. These four categories describe the internal and external factors that may affect your business’s ability to compete in the market either positively or negatively. Here’s what they mean.
Strengths refer to the internal capabilities of your business which might give it an advantage over its competitors, such as, for example, lower production costs or intellectual property. Weaknesses on the other hand describe the areas of improvement for your business, which can be anything like having higher operational costs than your competitors or lack of brand awareness.
Opportunities refer to the positive external factors such as an underserved market niche or reduced costs of supplies and finally, threats are negative external conditions such as new technologies or new competitors that might replace your product. You must consider these factors before making the strategic plan of your organization so you don’t steer your business in the wrong direction. Our
