SWOT is an analysis method, which is used to analyze the external environment and internal capabilities of an enterprise. SWOT stands for

S, which means advantages

W means disadvantages

O means opportunities

T means threats

Through the analysis of these four factors, the company's strategy can be organically combined with the company's internal resources and external environment.

strengths and weaknesses refer to the internal capabilities of the enterprise itself, while opportunities and threats refer to all factors that can affect the enterprise in the external environment in which the enterprise is currently located.

SWOT analysis has the following three aspects:

1. Analysis of environmental factors

By using various investigation and research methods, various environmental factors of the company, namely external environmental factors and internal capability factors, are analyzed. 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.

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

advantages: 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: 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.

opportunities; It is an external factor of the organization, including: new products; New market; New demand; Foreign market barriers lifted; Competitor mistakes, etc.

threat: it is also an external factor 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.

Second, construct a SWOT matrix

Construct a SWOT matrix by sorting the various factors obtained from the survey 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.

Third, make an action plan

After the analysis of environmental factors and the construction of SWOT matrix are completed, 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. Using the comprehensive analysis method of system analysis, the various environmental factors arranged and considered are matched and combined, and a series of optional countermeasures for the future development of the company are obtained.