The SWOT matrix (or analysis) is a strategic planning tool based on four factors- Strengths, Weaknesses, Opportunities, and Threats, distributed as such.

A SWOT analysis can help you better understand your business, develop new goals for improving it, and figure out strategies for achieving such objectives.







Why perform a SWOT analysis?

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Every business has certain strengths that contribute towards its success. SWOT analysis helps you to identify such advantages and build on them to maintain the competitive advantages. In addition, strengths can be used to maximize the identified opportunities and minimize threats.

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When you identify the weaknesses of your business with the help of SWOT analysis, you can take steps to minimize or alter them to reduce their effects. Minimizing weaknesses also helps to avoid the identified threats.

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Discovering and capitalizing on new opportunities allows you to benefit from them quickly to enjoy better profits or gain a competitive advantage. A SWOT analysis would make it easier for you to understand the best way to take advantage of these opportunities. It makes you more aware of the external environment and how it can be affected by the internal factors of your business.

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External threats can come at any time but can be countered if you acknowledge them quickly. A SWOT analysis helps you to be proactive, anticipate potential future threats, and negate or reduce their influence before they can do much harm.

How to conduct a SWOT matrix?

How to apply the SWOT Matrix?

The limitations of SWOT analysis and alternatives to consider

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