SWOT refers to a method of synthesizing and summarizing all aspects of internal and external conditions of enterprises, and then analyzing the strengths and weaknesses, opportunities and threats faced by organizations. As long as the market economy conditions are relatively sufficient and resources are highly mobile, SWOT analysis can be used as an evaluation method.

These include:

S strength refers to the comparative analysis of the advantages of this industry compared with other competitors in the external market environment and internal management;

W- weakness refers to the comparative analysis of the disadvantages of the industry compared with other competitors in the external market environment and internal management;

O-opportunity is to analyze the development opportunities of enterprises under the current market competition situation;

T-threat is to analyze the threats and challenges existing in enterprises under the current market competition situation.

Extended data

Like many other strategic models, SWOT model was put forward by McKinsey a long time ago and has the limitations of the times. In the past, enterprises may pay more attention to cost and quality, but now enterprises may pay more attention to organizational processes. For example, how to transform the old electric typewriter into a printer?

From the SWOT analysis, the advantage of electric typewriter manufacturers lies in electromechanical, but it seems that there are more opportunities to develop printers. As a result, some developed towards printers and died miserably; Some companies have made great progress in razor production. See if you want an opportunistic growth strategy or a competency-based growth strategy. SWOT does not take into account the initiative of enterprises to change the status quo. Enterprises can create their own advantages by looking for new resources, so as to achieve strategic goals that could not be achieved in the past.

In the process of applying SWOT analysis, we may encounter some problems, which is its adaptability. Because SWOT analysis can be used in too many occasions, it must be adaptable. However, this will also lead to abnormal phenomena. The problems caused by the basic SWOT analysis method can be solved by the more advanced power SWOT analysis method.