What is a SWOT analysis

June 2, 2020 10:28 am

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A SWOT analysis is a way of looking at your business and identifying ways in which you can further expand and improve on your existing structure and offering. It looks at the following.

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Strengths – this is parts of your business that are strengths over others who are doing something similar. So Farah Jackets for example may have the strength of the Frah branding behind them when compared to other non- branded jackets.

Weaknesses – this is parts of the business that are weak compared to others. For example, this could be the way in which you keep in touch with your customers. Perhaps others send out newsletters but you do not have the skills to be able to do this.

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Opportunities – this is an area that the business could utilise to its benefit. This could be that the Farah Jackets that you sell are not available anywhere else in the country.

Threats – this is an area that could cause problems for your business. This could be lack of warehouse space or an increase in rental fees.

Once you have identified all of the areas of the SWOT you can then strategically plan ways in which you can make the most of your strengths and the opportunities available to you, whilst also improving on your weaknesses and minimising the threats.