SWOT analysis is a planning tool that enables analysis of a business or project.
It involves identifying the internal factors and allocating them as either a Strength or a Weakness, and the external factors and allocating them as either an Opportunity or a Threat.
The strengths are the characteristics of the business or project that give it a competitive advantage over others. The weaknesses are the characteristics of the business that place the business or project at a disadvantage relative to others. Opportunities are the elements in the environment that the business or project could exploit to give a competitive advantage. The threats are elements in the environment that could cause the business or project to stall or fail.
What makes SWOT a pertinent analysis tool is, with a little investment in time (its a great way to engage employees into a project), it can help you identify opportunities that you can exploit and, by understanding the weak spots of your business, you can manage and eliminate threats that would otherwise catch you unawares.
By looking at your project or business in this way, you can start to develop a strategy that helps you distinguish yourself from your competitors.
If you need help maximising your profit, give us a call.