Question

What is meant by SWOT?

What is SWOT Analysis?

Answer 1

SWOT analysis involves evaluating a firm’s Strengths (S), Weaknesses (W), Opportunities (O), and Threats (T). A strength is an internal attribute that gives the firm a competitive edge, such as having skilled and motivated staff. A weakness is an internal shortcoming, like insufficient financial resources. An opportunity represents a positive external situation, such as rising market demand. A threat is an external challenge, like growing competition. Strengths and weaknesses are determined by examining the internal environment, while opportunities and threats are identified through analysis of the external environment.

Strengths (S)	Weaknesses (W)
Huge financial resources Competent and motivated staff Latest technology Well established brands Strong management team	Poor financial position Inexperienced staff Obsolete technology Unknown brands Weak management
Opportunities (O)	Threats (T)
Liberal Government policies Declining interest rates Growing markets Higher disposable incomes	Increasing competition Availability of cheaper substitutes Political corruption Risks in foreign markets