SWOT analysis, also known as situational analysis, was put forward by a management professor at the University of San Francisco in the early 1980s. It is a method that can objectively and accurately analyze and study the actual situation of enterprises or products. SWOT stands for strength, weakness, opportunity and threat. Generally speaking, 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. SWOT theory is a way of thinking for enterprises to "know yourself and know yourself" in a competitive environment. Using this method, we can find out the factors that are beneficial to our own competition and our relative weaknesses, find out the existing problems, find out the solutions, and make clear the future development direction. Specifically, we can classify the problems according to their priorities, make clear which ones need to be solved urgently, which ones can be delayed slightly, which ones are obstacles to strategic goals and which ones are tactical problems, list these research objects, arrange them in the form of a matrix, and then match and analyze various factors with the idea of system analysis, and draw a series of corresponding conclusions. And the conclusion usually has certain potential external threats (T) potential external opportunities (O) external environment, slow market growth, greater competitive pressure, unfavorable government policies, new competition, gradual increase in the sales of substitute products in the industry, enhanced bargaining power of users, gradual changes in users' needs and hobbies, and intensified inflation, and other vertically integrated markets are growing rapidly, which can increase mutual products, win new user groups, and perhaps enter new markets or market scenarios. A good enterprise group has potential internal advantages such as peer industry, excellent competitive performance, expanding product line to meet users' needs, etc. (s) potential internal disadvantages (w) internal conditions, property rights, technology, cost advantages, competitive advantages, special capabilities, product innovation, economies of scale, good financial resources, high-quality managers, recognized industry leaders, good impressions of buyers, adaptable business strategies and other competitions. The backward marketing level of technological development is hell. Other enterprises in the same industry have poor historical records of poor implementation of business strategies, shortage of funds, high cost of competitors and other policies, which are conducive to leaders and managers to make more correct decisions and plans. At the same time, SWOT ensures that this kind of planning and decision-making comes from a thorough grasp of the competitive environment. The advantages and disadvantages here are not absolute, but relative The factor that can control the opportunity is advantage, and the factor that can avoid the threat is advantage, and vice versa. Therefore, the core of applying SWOT is to have the concept of global competition analysis and find internal problems and advantages in the external competition system, which is a systematic way of thinking and a dynamic way of thinking. S (strength advantage) is an internal factor of an organization, which includes: favorable competitive situation; Adequate financial resources; Good corporate image; Technical strength; Economies of scale; Product quality; Market share; Cost advantage; Advertising offensive, etc. W (weakness) refers to the relative weakness in competition. It is also an internal factor 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. O (opportunity) is the external factor of the organization, including: new products; New market; New demand; Cancel market barriers; Competitor mistakes, etc. T (threat) is also an external factor of the organization, including: new competitors; The number of substitute products has increased; Market tightening; Changes in industrial policies; Economic recession; Changes in customer preferences; Unexpected events, etc. (Figure 34 Factors to be considered in SWOT analysis). Using the comprehensive analysis method of system analysis, the various environmental factors considered in the arrangement are matched and combined, and a series of alternative future development countermeasures are obtained. According to the complete concept of enterprise competitive strategy, strategy should be an organic combination of what an enterprise can do (that is, the advantages and disadvantages of the organization) and what it can do (that is, the opportunities and threats of the environment). The competition theory put forward by Michael Porter, a famous expert in competitive strategy, thoroughly analyzes and explains what an enterprise can do from the perspective of industrial structure, while competency-based management scientists use the value chain to deconstruct the value creation process of enterprises and pay attention to the analysis of company resources and capabilities. On the basis of synthesizing the former two, SWOT analysis combines the internal analysis of the company (that is, the research orientation concerned by the management authorities in the mid-1980s, represented by the ability school) with the external analysis of the industry competitive environment (that is, the central theme concerned by the early strategic research, represented by Andrews and Michael Porter), and forms its own structural balanced system analysis system. Compared with other analysis methods, SWOT analysis has obvious structural and systematic characteristics from the beginning. As far as structure is concerned, first of all, in form, SWOT analysis is to construct a SWOT structure matrix and give different analytical significance to different areas of the matrix; Secondly, the main theoretical basis of SWOT analysis also emphasizes the analysis of the external environment and internal resources of enterprises from the perspective of structural analysis. In addition, as early as the 1960s before the birth of SWOT, some people put forward the internal strengths, weaknesses, external opportunities and threats involved in SWOT analysis, but only analyzed them in isolation. The important contribution of SWOT method lies in matching these seemingly independent factors with systematic ideas for comprehensive analysis, which makes the formulation of enterprise strategic plan more scientific and comprehensive. Since its formation, SWOT method has been widely used in enterprise strategic research and competitive analysis, and has become an important analytical tool for strategic management and competitive intelligence. Intuitive analysis and simple use are its important advantages. Even without accurate data support and more professional analysis tools, we can draw convincing conclusions. However, it is this intuition and simplicity that makes SWOT inevitably have the defect of insufficient accuracy. For example, SWOT analysis adopts qualitative methods, and forms a fuzzy description of the competitive position of enterprises by enumerating various performances of S, W, O and T, and the judgment made on this basis is bound to be accompanied.