Timmy, On The Team at GBC, 2 min read
In evaluating your company’s overall situation, a key question is is whether your company is in a position to pursue attractive market opportunities and defend against external threats to its future well-being. The simplest and most easily applied tool for conduction this examination is widely known as SWOT analysis. SWOT analysis is so named because it zeros in on your company’s internal Strengths and Weaknesses, market Opportunities, and external Threats. A first-rate SWOT analysis provides the basis for crafting a strategy that capitalises on your company’s strengths, overcomes its weaknesses, aims squarely at capturing your company’s best opportunities, and defends against competitive and environmental threats.
A strength is something your company is good at doing or an attribute that enhances its competitiveness in the marketplace. Your company’s strengths will depend on the quality it resources and capabilities. A weakness, or competitive deficiency, is something your company lacks or does poorly (in comparison to others) or a condition that puts it at a disadvantage in the marketplace.Market opportunity is a big factor in shaping your company’s strategy. Indeed, small business owners can’t properly tailor strategy to your company’s situation without first identifying its market opportunities and appraising the growth and profit potential each one holds. Finally, certain factors in your company’s external environment pose threats to its profitability and competitive well-being. Threats can stem from the emergence of a cheaper or better technologies, the entry of lower-cost foreign competitors into your company’s market stronghold.
So, SWOT analysis is a simple but powerful tool for sizing up your company’s strengths and weaknesses, its market opportunities, and the external threats to its future well-being.
Hope you enjoyed this short thought-leadership piece. Much love…from GBC.
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