“Almost all students studying business subjects must know how to make a business plan. In some instances, the required task is a marketing plan that is primarily used for launching a new product or service by a business. Sometimes, it is a comperehensive strategic plan that would cover medium term business activities in the coming five to ten years.
No matter what type of plan, things have to begin with a SWOT analysis. It is very important for business students and people who are not aware of the importance of planning to learn SWOT analysis definition. Understanding SWOT analysis definition would give you an idea about factors that must be considered even before creating a plan.
In all cases, SWOT analysis definition should be clearly understood by individuals participating in strategic planning. Generally, the individuals accountable for such planning are the CEO, COO, Head of finance, marketing manager, operation manager and other department heads. If you are an entrepreneur or a business student, the following discussion would enlighten you further on SWOT analysis definition : Strengths- This includes a resources of a firm and its ability. This can include having a strong brand name that almost all people know. A company’s strength could also translate to access to different distribution channels which makes it easy to promote its products on a large scale. It can be equivalent to patents so that no other business can copy its logo like Apple or Starbucks.
Weaknesses SWOT analysis definition simply tells us that whatever lacks in strength is the companys weakness. Among the SWOT factors connoting weaknesses are poor reputation among clients, lack of resources or inefficient distribution channels, and bad location. Both strengths and weaknesses are found within the organization.
Opportunities – These are often referred to as external factors that can possibly increase profitability for the business. Among these factors are arrival of new technologies, unfulfilled or newly created customer need, and loosening of some government or trade regulations.
Threat -The external environment pose a lot of instability for a business so new or substitute products, shift in consumer behavior, new trade regulations and strict regulations are all potential threats.
A clear understanding of SWOT analysis definition would surely help you manage the internal factors to your benefit and at the same time, be prepared for any external threats or opportunities.”