In SWOT (Strengths, Weaknesses,
Opportunities and Threats) analysis, the analyst first looks into the business
unit to identify its strengths and weaknesses. The analyst then reviews the
environment in which the business unit operates and identifies opportunities
presented by that environment and the threats posed by that environment. The
following lists show questions that an analyst would ask in conducting a SWOT
analysis.
Strengths
- What does the company do well?
- Is the company strong in its market?
- Does the company have a strong sense of purpose and the culture to support the purpose?
Weaknesses
- What does the company do poorly?
- What problems could be avoided?
- Does the company have serious financial liabilities?
Opportunities
- Are industry trends moving upward?
- Do new markets exist for the company’s products/ services?
- Are there new technologies that the company can exploit?
Threats
- What are competitors doing well?
- What obstacles does the company face?
- Are there troubling changes in the company’s business environment (technologies, laws, and regulations)?
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