Business analysis tools are used to analyze internal and external environment of any business. The tool will answer all the questions on business opportunities. There are different types of business analysis tools and SWOT is one of them. A SWOT analysis is a powerful way to examine internal and external factors that affect a company’s performance. It is applied mainly in initial stages before the company launches new plans, mainly strategic marketing plans.
There are four contributing elements that must be examined to complete the analysis, that are; strengths, weaknesses, opportunities and threats. Among them, strengths and weaknesses are under the control of a company. Therefore, they are also called internal factors. Whereas external analysis focuses on examining external factors. These factors are grouped into opportunities and threats to the company. SWOT analysis help to analyze four factors i.e. Strength, Weakness, Opportunities and Threat.
- Strengths: Strengths are internal factors of an organization that helps to achieve its goal and objective. It will differentiate and help to attain competitive advantage.
- Weaknesses: Weakness are those attributes inside the company which are unfavorable to achieve organization objective.
- Opportunities; Opportunities are external factors and are favorable for achieving the organization’s objective.
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