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SWOT analysis

SWOT analysis is a technique used to analyze the external factors that may affect an organization and the internal factors that can help an organization compensate for these.

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SWOT analysis

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  1. SWOT analysis SWOT analysis is a technique used to analyze the external factors that may affect an organization and the internal factors that can help an organization compensate for these. Business analysis models and techniques are all covered in-depth in our Business Analyst Certification online courses. SWOT stands for: Strengths. Weaknesses. Opportunities. Threats. SWOT factors SWOT analysis is an extremely useful tool that can be used to evaluate an organizations’ competitive position and to develop an appropriate plan for growth or adaptation. Strengths – internal factors Example: Strong product branding. Market research shows that when compared with the competition, we secured ‘best space’ in all branches of the top 5 retailers.

  2. Weaknesses – negative factors Example: We have poor cash-flow. Against industry benchmarks, we are in the bottom quartile. We exceed our overdraft limits on 19 days every quarter. Opportunities – positive factors Example: Demographic change in Europe and the US will provide a greater market for our products in the future. Threats – external factors Example: Low market growth will see an increased concentration of business through acquisition. The poorest performing businesses will fail. SWOT infographic The following infographic explains how to use the SWOT method in your analysis.

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