Is SWOT Analysis Being a Strategic Planning Technique?


 SWOT-analysis helps to check the potentiality of your idea in a business. It helps to know whether your idea is effective or not. The changing of the environment is very fast due to the technological revolution.  SWOT is a very good method to know your product, services and your organisation. The contemporary environment is very competitive to position the products/services with the help of the analysis. If you want to set up a strategy for your product/services and organisation, this method is effective.

SWOT is an acronym for strengths, weaknesses, opportunities and threats. Internal environment analysis helps to know the strengths and weaknesses of your organisation but opportunities and threats help to understand the external environment. This is a very simple method for formulating the strategy for the organisation or your business.

Strength

Strength is the key area that will distinguish your company from the competitors and it is an advantage of the company. Some of the important points are:

  • Favourable location
  • Excellent distribution network
  • Quality certification
  • R&D centre
  • Cost advantages, resources
  • Advanced technology
  • Skilled labourers
  • Access to certain resources
  • Advanced technology

Weakness

Identify the weakness for improving or removing from your business. Some of the weakness areas of your business

  • Poor reputation
  •  Low production capacity
  • Traditional Methods for production
  • Low worker commitment

 Opportunities

Opportunities are something that positive will happen to overcome the weakness. A company can develop opportunities and protect against threats.

  • Technologies
  •  International business
  • Favourable industrial trend
  • Possibility of a niche target market
Threat

The threat includes anything that can negatively affect the business from outside which are:
 

  • Supply chain problems
  • Shortage of resources etc.
  • Changing of consumer taste
  • The emergence of substitute products 

Identify the strength, weakness, opportunities of the organisation help to manage the organisation with the help of strategies. Strategy formulation is not a simple task. However, you can formulate the strategy with the help of SWOT. 


Strategies for SO (Strength and Opportunities)

Opportunities are the most important arena of a business. That can be converted as a strength of the organization especially in the competitive environment

Strategies for WO (Weakness and Opportunities)

Convert the Opportunities to the strength and it helps to overcome the weakness of the organisation up to a certain extent

Strategies for ST (Strength and Threat)

Strength can help to reduce the threat of the organisation from the external environment. So with the strategies, you can overcome the threat with the help of strength

Strategies for WT (Weakness and Threat)

A defence plan helps to prevent the weakness and threat of the organisation. Minimize weakness and avoid the threat

Conclusion

SWOT analysis is a good tool for analysing the organisation to know the strength, weaknesses, opportunities and threats. With the help of the appropriate strategies, you can overcome the weakness and reduce the threat up to a certain extent.

#swot   #strategies  

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