Swot Analysis : Swot And Swot Essay

819 Words Dec 14th, 2016 4 Pages
The SWOT analysis is a theory used to understand the behaviour of a company, regarding the external and internal environment. The initials SWOT stand for strengths, weaknesses, opportunities and threats. Strengths and weaknesses are factors arising from the internal environment. A strength is an ability, primary source or special characteristic that businesses use to gain advantage amongst other organisations. Business leverage strengths to create opportunities in the external environment; furthermore, as solutions against external threats. A strength could be a resource, in this case, a well-prepared workforce, good reputation or a good relationship between the organisation and suppliers. In fact, a weakness is the opposite of strength. It is presented as lacking of abilities, primary sources or special characteristics that a business requires improving its performance more than the competition in the external environment. For instance, a company producing electric devices will rely on technology and innovation to make products that satisfy customers’ needs and expectations. However, if it relies on the same technology that has been using the first device. It can be seen as a weakness; because a lack of innovation is a key success factor for the electronic industry.
Once the internal factors of a business have been established. They can identify the influences from the external environment. They are opportunities and threats. An opportunity is defined as the…

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