The word SWOT is an acronym that has an exclusive use in the field of business Administration where designates a classic and widely used tool in this field. SWOT is the simplification of the following concepts that make it up: Strengths, Weaknesses, Opportunities and Threats.
Basically the SWOT consists of a relatively simple and fast analysis that will allow to arrive at a correct and precise diagnosis about a plan, project or strategy that a company intends to implement to maximize its sales, to cite a fairly recurring example. That is, the SWOT seeks through their participation on the scene that the plan in question is successful. You will assess the situation and then propose a course of action to take to be successful.
By the way, then, that evaluation will focus especially on the strengths, the opportunities, the weaknesses and the threats that surround the company and the plan in question. These four variables are essential to take into account to address a correct course of action.
Weaknesses obviously must be considered exhaustively because they can determine failure. In terms of weaknesses we can cite a fairly closed financial present of the company, the lack of experience in the market, among others.
On the other hand, strengths are the most positive conditions to identify and promote because success will directly depend on them, they are in some way the direct bridge to it. Having good management, widely trained personnel, financial resources, a product installed on the market, among others, can be mentioned as clear strengths.
With regard to threats and opportunities, both conditions are strictly related to the context in which the plan is developed and which will precisely be affected by it. In this case, there is not much to do because it is mainly the situation outside the company that influences these and not any internal action of the company. The appearance of a new product launched by the competition can be identified as a threat while the scope of some tax benefit can be mentioned as an opportunity.
