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Evaluating Internal And External Factors With SWOT Analysis


There are numerous methods and tools used today to help you understand the business environment. Perhaps one of the best known, and most straightforward, is the SWOT Analysis. SWOT is an acronym for Strengths, Weaknesses, Opportunities and Threats and is a method for evaluating internal and external factors that impact an organization. More specifically, it assesses an organizations:
Strengths -
those things that an organization is good at doing

Weaknesses
those things that an organization is not good at doing

Opportunities
situations or conditions in a market that are favorable for an organization

Threats - situations or conditions in a market that are favorable for an organization.

The beauty of SWOT is its simplicity in approach. Often represented using a 2x2 matrix, organizations can leverage SWOT to help better understand and evaluate a variety of situations in organizations.

Although SWOT Analysis in itself is useful for organizations to study internal and external factors, its true value is realized when used as part of an overall strategic planning process. SWOT represents one of many integral components – like competitive intelligence, business intelligence, market research – that help organizations further improve their overall performance.

Performing a SWOT Analysis can be a time consuming and data intensive process, specifically when it comes time to understanding the competitive environment. That's why we've developed an online tool that not only automatically creates your SWOT matrix but that also helps collect, synthesize and distribute competitive information. To learn more about the benefits of this online tool, please visit our product information page.
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