A properly conducted SWOT analysis is an example of a comprehensive consideration of each component. For example, a cafe-bakery opens next to a business center. Strengths - in this case, the use of organic raw materials and a wider range will be: all cafes offer only croissants and sandwiches, and the bakery can offer various pastries, including for healthy lifestyle supporters (for example, bread without sourdough or from whole grain flour).
The weakness of such a cafe-bakery may be insufficient work with social networks , because of this, only those employees of the business center who have visited the cafe know about the assortment of georgia mobile database the cafe. Opportunities are an increase in the number of visitors after an advertising campaign, the appearance of additional services (for example, delivery of orders to the office). And a threat is the appearance of another cafe-bakery nearby, with a similar assortment, but belonging to a well-known, promoted chain.
Why is it needed?
Each enterprise may have its own answer to why a SWOT analysis is conducted in a specific case. The common feature is that this tool helps to see the real situation, assess potential external threats and identify opportunities. Any market changes, with the correct application of this analysis, can be turned to your advantage, relying on the strengths of the enterprise. Conducting an analysis helps to reduce risks or negative consequences from the impact of unfavorable external factors. Analysis is also needed so that the enterprise can adopt a new strategy, including one related to a change in geographic direction, type of activity, rebranding, etc.
helps to adapt to changes in the market situation, to determine the relevance of the product that the company produces;
needed to sum up the results of the reporting period - the analysis helps to understand how much sales figures have grown, what has been improved in the company's work during this period, what new threats have emerged;
predicts the company's development prospects - identifies new opportunities and threats (for example, changes in legislation, the emergence of new technologies), helps to identify growth points that will help to get ahead of competitors;
assess the risks when launching a new direction or entering a new market.
The methodology links all four components so that you can see the relationships between the factors, and helps to interpret them correctly and make the right management decisions based on them. The results of the SWOT analysis paint a complete picture of the company's condition, the external and internal factors affecting it.