“SWOT analysis is well known as a strategic planning approach that can guide a business or an organization evaluate its
Strengths, Weaknesses, Opportunities and Threats.An environmental scan that includes both internal and external factors that has influence on a business is vital particularly when holding strategic planning.
Since most business organizations have a goal, it is very favorable to them to conduct a SWOT analysis that would give them a detailed and comprehensive condition of the business. The SWOT analysis has four factors but this article would mainly focus on SWOT analysis strength since its a very vital component of the analysis.
The SWOT analysis strength is the first internal factor that must be considered when scanning the business environment. SWOT analysis strength defines the features of the business that gives a competitive edge over its competitors. Each business has its own strength that it can develop to further enhance productivity and gain more profits.
Some examples of SWOT analysis strength includes customer loyalty, patents, a strong brand name, good distribution channels, exclusive access to natural resources, cost advantage through proprietary know how, new product or service, good location and quality process/procedures. Some of the SWOT analysis strength canbe classified as tangibles or intangibles.
Speaking of SWOT analysis intangibles, it could mean having a good brand name that has been created through years by dominating the market share. Having a good brand name means that people are aware of your product and most likely buy it when considering a product or service.
On the opposite, a perfect example of tangible SWOT analysis strength would be a great location. A business location is crucial especially businesses like restaurants, hotels, shops, etc. Foot traffic and exposure to many people is good for a food business making it very accessible to all passersby.
In some cases, a business may derive its strength from having good distribution channels. All of their products are almost visible anywhere which makes it convenient to choose. A business can direct its limited resources to more productive products so they can earn more. Understanding SWOT analysis strength is truly important when making decisions in marketing and finance.”