SWOT, One of most widely used strategic planning tools. It refers to strengths, weaknesses, opportunities and threats. SWOT analysis is a process where the management team identifies the internal and external factors that will affect the company’s future performance. It is often used as basic guide for strategic planning.

The company’s strengths and weaknesses are the internal factors. Opportunities and threats deal are the external factor to the company. Every individual can make a list of his positive points (strength) and negative points (weakness).

A weakness can be converted into strength by recognizing it and by making an effort in that direction. Similarly, it is very important to be aware of the opportunities that come to business at various points of time because opportunities helps the organization for the development, it may arise from the technology, competitors etc. Possible threats that also come from the other persons in form of competition, economic crises etc. A strong business always ready to face the threats. An effective SWOT analyses helps the organization to focus on strengths, minimize threats, and take the greatest possible advantage of opportunities available to you.

Purpose of SWOT Analysis:

An individual’s, Small businesses or large enterprises can use the SWOT  for the betterment of the company. Marketing people with the help of other colleagues do the SWOT. SWOT plays a vital role in the strategic planning of the company. SWOT analysis is recognizing, key strengths of an organization. These strengths can incorporate a strong brand picture, a lot of working capital, a great status among consumers and even strong dissemination systems.


  • SWOT analysis provides an organization a clear view of its strengths, allowing it to build on them and meet business objectives
  • Once your analysis  is ready it gives you proper understanding about your  Strengths and weakness  as well as Opportunity and threats. Which will affect the business in terms of success or failure.
  • Highlights weaknesses and provides analysts a chance to reverse them
  • Helps an organization recognize possible threats and take necessary measures to deal with them. Companies can introduce new policies and establish growth plans to eliminate any possible threats.
  • It helps in the formation of a strategy so as to make preparations for the possible threats from the competitors

 Advantages of SWOT Analysis

  • Act as a source of information for planning
  • Ensures building organizational strengths
  • It highlights  your weaknesses and gives an opportunity to overturn them.
  • Your business can make long-term plans and objectives
  • SWOT  gives an acceptable perspective of your strengths, and permits you to expand on them to meet your business targets.
  • It helps you examine possible threats to your business, and roll out essential improvements to the business arrangements and development plans.
  • The whole SWOT analysis methodology brings to light your resources, and gives inspiration and the essential drive to continue your marketing strategies in spite of all odds.

ALSO SEE: USP- “Unique selling point”

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