The Significance of SWOT Analysis strength

SWOT analysis is well known as a strategic planning approach that can guide a business or an organization evaluate its Strengths, Weaknesses, Opportunities and Threats.An environmental scan that includes both internal and external factors that has impact on a business is necessary particularly when conducting strategic planning. Since all business organizations have an objective, it is very favorable to them to conduct a SWOT analysis that would give them a complete and comprehensive state of the business. The SWOT analysis has four factors but this article would mainly focus on SWOT analysis strength since its a very vital component of the analysis.

The SWOT analysis strength is the primary internal factor that must be given attention when scanning the business environment. SWOT analysis strength defines the characteristics of the business that gives a competitive edge over its competitors. Each business has its inherent strength that it can capitalize on to further enhance productivity and gain more profits. Some examples of SWOT analysis strength encompass customer loyalty, patents, a strong brand name, good distribution channels, exclusive access to natural resources, cost advantage through proprietary know how, new product or service, good location and quality process/procedures. Some of the SWOT analysis strength are either tangibles or intangibles.

Speaking of SWOT analysis intangibles, it could mean having a good brand name that has been created through years by dominating the market share. Having a good brand name means that people can easily recall your brand and most likely choose it when considering a product or service. On the opposite, a perfect example of tangible SWOT analysis strength would be a great location. A business location is extremely valuable especially for businesses like restaurants, hotels, shops, etc. Foot traffic and exposure to many passersby is important for a food business since people can drop in anytime to eat. In some cases, a business may be strong because of good distribution channels. All of their products are almost visible anywhere which makes it convenient to choose. A business can turn its limited resources to more productive products so they won’t lose money. Being able to identify SWOT analysis strength is indeed important when making decisions in marketing and finance.

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