SWOT Analysis

On October 10th, 2011, Posted by author

Last modified: October 26, 2015

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SWOT analysis, also sometimes called SLOT analysis is a technique created by Albert Humphrey at Stanford University in the late 1960s. SWOT stands for the words: Strengths, Weaknesses, Opportunities and Threats. Some authors substitute the word Limitations for Weaknesses.

SWOT analysis, although meant to be used for the performance and strategic planning of companies and corporations, can also be used by individuals, plan on how to use what they have and what they perceive to plan for development.

SWOT Analysis Matrix

Swot analysis is designed in the form of a grid with the helpful characteristics of strengths and opportunities listed in one column and the harmful characteristics of weaknesses or limitations and threats listed in the second column. As strengths and weaknesses are internal in origin, whether to the company or the individual, they are listed on the top row and the external characteristics of opportunities and threats are listed in the row below. Once the grid is drawn, it is easy enough to make lists of the characteristics of the company that come under these headings. The comparative and competitive advantages and disadvantages of the company over other companies in the same business are the strengths and weaknesses. The prospects that are open to the company for expansion, profit making and increasing their sales in the conditions present in the market place environment, form the opportunities. The issues that could hamper the development of the company or cause trouble to its planned development are the threats.

Strategic planning and decision making bodies can make use of the SWOT analysis to find out whether the objective they are envisaging is possible by matching their strengths and opportunities and by converting their weaknesses into strengths and learn how best to face threats. Other uses of SWOT analysis are in crisis management, viability studies and survey and in academic areas.

SWOT analysis is usually used with PEST or PESTEL analysis when multinational companies are planning expansion contemplating a make or buy decision.

SWOT analysis and PEST analysis of companies or institutions are part of the marketing and business studies courses. Our professional writing services can prepare SWOT analysis for the case studies in your course. Our essay online service makes it easy for you. Just click the link to get an essay outline or to buy a research paper.

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