SWOT analysis is one of the most popular marketing tools that allows you to predict and evaluate scenarios before taking actual action.

The acronym SWOT referts to
Strenght
Weaknesses
Opportunities
Threats
 
These are the factors that indicate which analyzes must be carried out and can be classified between internal and external environment.

The internal environment refers to the environment over which it is possible to exercise control, such as the choise of human resources, organizational culture, technology used etc. Within the internal environment, the strenghts and weaknesses of the company must be analyzed.

Strenght are the internal characteristics that represent an advantage over the competition, while weaknesses are the negative aspects that can represent a disadvantage to your company against the competition.

The external environment refers to the environment over which it is not possible to exercise control, such as competition, the socio-economic environment, market fluctuations, etc. Here the opportunities and threats must be analyzes.
To identify what are the opportunities, you should look at the market changes that could be positive for your business, such as economic policies or foreign investments.

As for threats, you should analyze the scenario where the unfavorable factors for your company are found and over which you have no control, such as the entry of new competitors in the market or natural disasters.

Once the different factors are identified, it is important to establish relations between them in order to determine:

• How forces can leverage opportunities
• How forces can combat threats
• How weaknesses can harm opportunities
• How weaknesses can potentiate threats

Why make a SWOT analysis?


SWOT analysis is an important step in internal planning, as it allows for broader and more realistic view of the internal and external environment in which the company operates, thus allowing for more accurate decision-making in accurate decision-making in accordance with these factors.

Thus, the SWOT analysis allows:

• Make safer and more informed decisions
• Recognize the scenario in which it operates
• Get more knowledge about the competition
• Preview different scenarios and develop differente action plans
  

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