A guide to SWOT analysis definition

Almost all students studying business subjects must know how to make a business plan. In some instances, it would be a marketing plan that is primarily used for launching a new product or service by a business. Sometimes, it is a full-blown strategic plan that would cover medium term business activities for the next five to ten years. No matter what type of plan, things have to begin with a SWOT analysis. It is very critical for business students and people who do not understand the importance of planning to learn SWOT analysis definition. Understanding SWOT analysis definition would give you an overview of factors that must be considered even before creating a plan.

Typically, SWOT analysis definition should be made clear to individuals involved in strategic planning. Commonly, the individuals responsible for such planning are the CEO, COO, Head of finance, marketing manager, operation manager and other department heads. If you are an entrepreneur or a business student, the following discussion would enlighten you further on SWOT analysis definition : Strengths- This includes a companys resources and its ability. This can include having a strong brand name that almost all people know. A company’s strength could also mean access to several distribution channels which makes it efficient to promote its products on a wider scale. It could also translate to patents so that no other competitor can duplicate its logo like Apple or Starbucks.

Weaknesses SWOT analysis defines weakness as that whatever lacks in strength is the company’s weakness. Among the SWOT factors connoting weaknesses are poor reputation among clients, lack of resources or inefficient distribution channels, and bad location. Both strengths and weaknesses are present within the organization.

Opportunities – These are often referred to as factors outside the organization that can possibly increase profitability. Among these factors are arrival of new technologies, unfulfilled or newly created customer need, and loosening of some government or trade regulations.

Threat The external environment can be unpredictable for a business so new or substitute products, shift in consumer behavior, new trade regulations and strict regulations are all considered threat.

A very good understanding of SWOT analysis definition would definitely guide you in handling the internal factors for your benefit and at the same time, allow you to prepare for any external threats or opportunities.

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