Correct SWOT analysis method)

The simple and effective SWOT tool can help a company identify its strengths, weaknesses, opportunities, and threats, and conduct management and strategy formulation correctly.

 

SWOT analysis has four basic concepts: strong (strenths), weak (weaknesses), opportunity (Opportunities), and threat (threats ). However, it is often seen that some researchers are confused about the four concepts and have reached the point of abuse. No matter what kind of research reports, they will show it out. Some customers even regard performance-an important matrix analysis as a SWOT analysis.

 

Strong and weak are internal characteristics of the company and can be changed through internal efforts. It can include capital, software, hardware, technical skills, ideas, corporate culture, people, resources, and so on. Through internal evaluation and comparison with competitors, we can effectively identify these features.

 

Opportunities and Threats are environmental factors that cannot be controlled by a company and cannot be changed. Including industry; "> market competition or laws and regulations, new technologies, politics, social culture, population change, military, and economy.

 

The following is a simulated example:

 

 

SWOT analysis is only the first step in strategic development. Enterprises need to further find the combination of internal elements and external environment, effectively adjust and integrate various internal elements to match or surpass changes in the external environment, obtain competitive advantages.

A pair matrix is a tool that combines internal elements with external environments for analysis. By dividing strong weaknesses and opportunity threats, we can conclude four major strategies for enterprises to cope with environmental changes:

 

However, it should be noted that such analysis may lead to the opposite result. How to choose whether the enterprise adopts a market-oriented strategy or a Resource-oriented strategy.