SWOT analysis refers to what aspects of analysis

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1 What is SWOT Analysis? In which areas is it effective? What are the constraints on how to use it?

A: SWOT analysis is an effective tool for analyzing the business unit environment, and provides a comprehensive evaluation of the strength of the business unit through the analysis of the strengths, weaknesses, opportunities, and threats of the business unit. The so-called enterprise advantage refers to the unique ability of the enterprise to be unmatched and imitable in some aspects compared with its competitors; The advantage of an enterprise is not only what it can do, but more importantly, it refers to what it can do better than its competitors.

The so-called enterprise disadvantage refers to the shortcomings and deficiencies of the enterprise compared with competitors in some aspects. SWOT analysis.

The specific approach is to list the various macro and micro factors that have an impact on the operation of the enterprise, and then evaluate whether these factors are the advantages or disadvantages of the enterprise for the development of the enterprise, whether it is a threat or an opportunity, and the appropriate weighting method can be used to calculate the overall environmental situation of the enterprise. The first type of enterprise: in the face of more market opportunities, at the same time the enterprise has obvious advantages.

At this time, enterprises should actively develop new products and expand business areas to obtain greater profit margins. The second type of enterprise: despite the numerous market opportunities, the enterprise is clearly at a disadvantage.

At this time, companies should build on their strengths and avoid weaknesses and try to make up for their shortcomings. The third type of enterprise is to face a strong threat and at the same time be in a competitive position.

This kind of enterprise can only adopt business adjustment and change the business strategy.

Avoid environmental threats, improve the company's own conditions, and seek new market opportunities. Through SWOT analysis, it can help enterprises accumulate resources and actions on their own.

The SWOT analysis method is originally a kind of enterprise strategy analysis method, that is, according to the established internal conditions of the enterprise itself, to find out the strengths, weaknesses and core competitiveness of the enterprise. where S stands for.

strength, W for weakness, O for opportunity, T for threat, where S and W are internal factors, and O and T are external factors. According to the complete concept of competitive strategy, strategy should be an organic combination between what an enterprise "can do" (i.e., the strengths and weaknesses of the organization) and "can't" (i.e., opportunities and threats to the environment).

However, SWOT analysis methods can also be used for personal analysis and so on.

1. S (strength).

It is an internal factor of the organization, including: a favorable competitive situation; Adequate Finance**; Good corporate image; technical strength; Economies of scale; product quality; market share; cost advantage; advertising campaigns, etc.

2. W (weakness).

refers to the aspects that are relatively weak in the competition. It is also an internal factor of the organization, including: aging equipment; management chaos; lack of key technologies; backward research and development; funding shortfalls; Mismanagement; product backlogs; Poor competitiveness, etc.

3. O (opportunity).

It is an external factor of the organization, including: new products; new markets; new demand; removal of market barriers; Competitor mistakes, etc.

4. T (threat).

are external factors to the organization, including: new competitors; an increase in alternative products; market tightening; changes in industry policies; economic recession; changes in customer preferences; emergencies, etc.

1. S (strengths) is an advantage. including technical force; favorable competitive dynamics; Good corporate image; Economies of scale;

product quality; market share;

advertising campaigns, etc.

2. W (weaknesses) is a disadvantage. including equipment aging; Mismanagement; management chaos; lack of key technologies; backward research and development; funding shortfalls; product backlog, etc.

3. O (opportunities) is an opportunity. including new products; new demand; removal of barriers to foreign markets; Competitor mistakes, etc.

4. T (threats) is a threat. are external factors, including new competitors; an increase in alternative products; market tightening; changes in industry policies; economic recession; Emergencies.

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There are three aspects to a SWOT analysis:

1. Analyze environmental factors.

Using various survey and research methods, we analyze the various environmental factors in which the company is located, that is, external environmental factors and internal capability factors. External environmental factors include opportunity factors and threat factors, they are the external environment has a direct impact on the company's development of favorable and unfavorable factors, belong to objective factors, internal environmental factors include advantages and weaknesses factors, they are the company's own positive and negative factors in its own development, are active factors, in the investigation and analysis of these factors, not only to take into account the history and current situation, but also to consider the future development of the problem.

Advantages are the internal factors of the organization, including: favorable competitive situation; Adequate Finance**; Good corporate image; technical strength; Economies of scale; product quality; market share; cost advantage; advertising campaigns, etc.

Disadvantages are also internal factors of the organization, including: aging equipment; management chaos; lack of key technologies; backward research and development; funding shortfalls; Mismanagement; product backlogs; Poor competitiveness, etc.

Opportunity is an external factor of the organization, including: new products; new markets; new demand; removal of barriers to foreign markets; Competitor mistakes, etc.

Threats are also external factors to the organization, including chaos: new competitors; an increase in alternative products; market tightening; changes in industry policies; economic recession; changes in customer preferences; emergencies, etc.

The advantage of the SWOT method is that it considers the problem comprehensively, is a kind of systematic thinking, and can closely combine the "diagnosis" and "prescribing stupid and rough prescriptions" of the problem, which is clearly organized and easy to test.

2. Construct a SWOT matrix.

A SWOT matrix was constructed based on the ranking of the various factors identified by the survey according to their priority or degree of impact. In this process, those factors that have a direct, important, massive, urgent and long-term impact on the company's development are prioritized, and those indirect, secondary, little, not urgent, and short-term influencing factors are ranked behind.

3. Develop an action plan.

Once the environmental factors analysis and SWOT matrix have been constructed, an action plan can be developed. The basic idea of formulating the plan is: give full play to the advantages of the factors, overcome the weaknesses of the factors, use the opportunity factors, and resolve the threat factors; Think about the past, base on the present, and focus on the future.

Using the comprehensive analysis method of system analysis, the various environmental factors that are arranged and considered are matched and combined with each other to obtain a series of alternative countermeasures for the future development of the company.

SWOT analysis is mainly applied to major decision-making matters such as strategy and tactics of war demolition, and can basically be applied to the decision-making analysis of any major matters, such as the analysis and decision-making of major investment projects of enterprises. For general day-to-day operational matters, it is certainly not necessary to use a SWOT analysis.

The so-called SWOT analysis, that is, the situation analysis based on the internal and external competitive environment and competitive conditions, is to compare the main internal strengths, weaknesses and external opportunities and threats that are closely related to the research object;

Through the investigation and enumeration, and according to the matrix form, and then use the idea of systematic analysis to match various factors with each other to analyze, from which a series of corresponding conclusions are drawn, and the conclusions usually have a certain decision-making.