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How to do SWOT analysis

the basic steps of SWOT analysis are:?

(1) analyzing the internal strengths and weaknesses of an enterprise can be related to both the enterprise goals and competitors.

(2) Analysis of external opportunities and threats faced by enterprises may come from changes in external environmental factors unrelated to competition, changes in competitors' strength and factors, or both, but key external opportunities and threats should be confirmed.

(3) Match external opportunities and threats with internal strengths and weaknesses of enterprises to form a feasible strategy. ?

Extended information:

SWOT analysis method is often used to formulate the group's development strategy and analyze competitors, and it is one of the most commonly used methods in strategic analysis. SWOT analysis mainly includes the following aspects:

Analysis of environmental factors

Using various investigation and research methods, it analyzes various environmental factors of the company, namely external environmental factors and internal capacity factors. External environmental factors include opportunity factors and threat factors, which are favorable and unfavorable factors that have a direct impact on the development of the company and belong to objective factors.

internal environmental factors include strengths and weaknesses, which are positive and negative factors existing in the company's own development, and belong to subjective factors. When investigating and analyzing these factors, we should not only consider history and present situation, but also consider future development issues.

Advantages are internal factors of the organization, including: favorable competitive situation; Adequate financial resources; Good corporate image; Technical strength; Economies of scale; Product quality; Market share; Cost advantage; Advertising offensive, etc.

disadvantages are also internal factors of the organization, including: equipment aging; Management confusion; Lack of key technologies; Backward research and development; Lack of funds; Poor management; Product backlog; Poor competitiveness.

opportunities are external factors of organizations, including: new products; New market; New demand; Foreign market barriers lifted; Competitor mistakes, etc.

threats are also external factors of the organization, including: new competitors; The number of substitute products increased; Market tightening; Changes in industry policies; Economic recession; Customer preference changes; Unexpected events, etc.

the advantage of p>SWOT method is that it considers the problem comprehensively, is a systematic thinking, and can closely combine the "diagnosis" and "prescription" of the problem, which is clear and easy to test.

construct a SWOT matrix

construct a SWOT matrix by sorting the various factors obtained from the investigation according to their priorities or influence degrees. In this process, those factors that have direct, important, massive, urgent and long-lasting influence on the company's development are prioritized, while those factors that are indirect, secondary, few, not urgent and short-lived are arranged behind.

making an action plan

after completing the analysis of environmental factors and the construction of SWOT matrix, the corresponding action plan can be made. The basic idea of making a plan is: give full play to the advantages, overcome the weaknesses, use the opportunities and resolve the threats; Consider the past, base on the present and focus on the future.

By using the comprehensive analysis method of system analysis, various environmental factors arranged and considered are matched and combined, and a series of alternative countermeasures for the future development of the company are obtained.

analysis of advantages and disadvantages (SW)

because the enterprise is a whole and the sources of competitive advantages are extensive, it is necessary to make a detailed comparison between the enterprise and its competitors from every link of the whole value chain when analyzing advantages and disadvantages. Such as whether the product is novel, whether the manufacturing process is complex, whether the sales channels are smooth, and whether the price is competitive.

if an enterprise's advantages in one aspect or several aspects are the key success factors that enterprises in this industry should have, then its comprehensive competitive advantage may be stronger. It should be pointed out that whether an enterprise and its products have competitive advantages can only be measured from the perspective of existing potential users, not from the perspective of enterprises.

opportunity and threat analysis (OT)

for example, the current popular piracy threat: pirated substitutes limit the highest price of a company's products, and substitutes not only pose a threat to the company, but also may bring opportunities. Enterprises must analyze whether substitutes bring "disaster" to the company's products or services or provide higher profits or values; The transfer cost of buyers switching to buy substitutes; What measures can companies take to reduce costs or increase added value to reduce the risk of consumers buying pirated substitutes?

overall analysis

on the whole, SWOT can be divided into two parts: the first part is SW, which is mainly used to analyze internal conditions; The second part is OT, which is mainly used to analyze external conditions. Using this method, we can find out the factors that are beneficial to ourselves and worthy of development, as well as the things that are unfavorable to ourselves and should be avoided, find out the existing problems, find out the solutions, and make clear the future development direction.

according to this analysis, we can classify the problems in order of priority, make clear which ones are urgent to be solved, which ones can be delayed a little, which ones are obstacles to strategic goals and which ones are tactical problems, list these research objects, arrange them in matrix form, and then analyze them by matching various factors with the idea of system analysis, from which we can draw a series of corresponding conclusions, which are usually decision-making and beneficial to leaders and managers.

Reference: Baidu Encyclopedia -SWOT Analysis.