SWOT analysis, also called SWOT matrix, is a strategic planning tool used to understand the current situation of a company and measure important data to project the future of the business.
The acronym SWOT refers to the recognition of the Strengths and Weaknesses of a brand and the Opportunities and Threats of its environment.
Understanding the target audience and knowing exactly where a given business is positioned in that scenario is essential for decision-making. In this sense, the SWOT analysis helps to plan the future of the brand .
Matrix for making a SWOT analysis.
Features of SWOT analysis
SWOT analysis is characterized by:
It is a complete diagnosis that takes into canada phone data account a specific moment in the business. For this reason, it is advisable to repeat the evaluation if it is identified that the context has changed.
Provide valuable information that must then be prioritized. This aspect is key, because the SWOT matrix itself does not provide solutions, it only shows the complete picture of the company's internal and external environment.
Include a subjective component, since, in addition to presenting specific data on the market situation, there are considerations on the strengths and weaknesses of the business, the interpretation of which will depend on the company's culture and the individual values of its collaborators.
Uses of the SWOT matrix
The most popular uses of the SWOT matrix , both for business and personal level, are:
Explore what obstacles prevent you from achieving your goals.
Analyze the current context to prevent a crisis.
Know the elements of a crisis that is already developing in order to manage it effectively.
Identify whether strengths and opportunities stand out to create a more aggressive or offensive strategy.
Determine if weaknesses and threats stand out to move forward with a defensive strategy.
Finding new opportunities for expansion in a scenario where competitors are no longer responding to a market need.