SWOT analysis matrix
SWOT analysis matrix or SWOT analysis is a strategic tool known analysis of the situation of the company. The main objective of applying the SWOT matrix in an organization, is to provide a clear diagnosis to make appropriate strategic decisions and improve in the future. Its name derives from the acronym formed from the initials of the terms: weaknesses, threats, strengths and opportunities. SWOT matrix analysis identifies both the opportunities and the threats of our market, and the strengths and weaknesses showing our company.
new behaviors of customers, competition, market changes, technology, economy, etc.: In the external analysis of the company’s key external factors for our company, such as those related to identified. It should take special care because they are uncontrollable by the company and directly influence its development. The SWOT matrix divided by both the external analysis opportunities and threats.
• Opportunities: they represent a chance to improve the company. Opportunities are positive and which can be exploited by the company factors. To identify opportunities can answer questions like: are there new market trends related to our company ?, what technological, social, legal or political changes are presented in our market?
• Threats: may endanger the survival of the company or to a lesser extent affect our market share. If we identify a threat early enough we can avoid it or turn it into opportunity. To identify threats to our organization, we can answer questions like: what obstacles we may find ourselves ?, there are funding problems ?, what are the new trends that follow our competitors?
The internal analysis of the company’s key for our company internal factors are identified, such as those related to: finance, marketing, production, organization, etc. In short it is performing a self-assessment, where the matrix of SWOT analysis is to identify the strengths and weaknesses of the company.
• Strengths: Are all those capabilities and resources that the company has to exploit opportunities and get to build competitive advantage. To identify them we can answer questions like: what advantages we have over the competition ?, what resources we have available low cost ?, what our strengths are in product, service, distribution or brand?
• Weaknesses: They are those points that the company lacks, of which it is lower than the competition or simply those in which you can improve. To identify weaknesses in the company we can answer questions like: what our customers perceive as weaknesses ?, what ?, we can improve what prevents us buy?
Example dafo or foda:
SWOT analysis SWOT matrix
Once we completed the SWOT analysis will try to play to our strengths to make the most of the opportunities offered by the market, and reducing threats detected, correcting or eliminating our weaknesses.
As we have seen, it is an effective and easy to implement tool, so the matrix SWOT analysis can be applied to any company, regardless of size and activity.