SWOT analysis is a strong formula for the companies to find out the internal strengths and weakness as well as opportunities and threats externally. SWOT analysis helps the managers to think for their strategic situation and internal analysis. And to find out is there anything more required to develop it? In this SW is Resources, OT is External Environment, and to check values.
There are few Key issues in the SWOT analysis
Strengths: Adequate financial resources, Good Competitive skills, Acknowledge Market leader. Cost Advantage.
Weakness: No Proper Direction, Declining Competitive position, Lack of key skills and competencies, Poor implementation strategy, falling back in R&D.
Opportunities: Enter new markets, Diversifications, Vertical Integration, Faster market growth.
Threats: Entry of new competitor, Rise in the sales of substitute product, slower market growth, growing bargaining power of customers/suppliers, adverse government policies.
There are few things which need to be clarified in the SWOT analysis such as
What are we good at doing or serving? Where the weak area is? What needs to be done for better opportunities? What needs to do to avoid threats?
Hence if these questions are answered well then the analysis is perfect for the positioning. This analysis helps the companies to perform better than before. This analysis is very much required for all organizations. Hence it is the analysis helps the company to stay a step forward. Hence all the companies should take care of this so as to avoid competition and stay healthier in the market for long term.
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