Money Business

Business Strategy is a topic that is becoming more and imperative for any business to survive in today’s day and age. Business strategies vary and so do the tools that are used for the creation of effective business strategies. One of the most important tools available to any manager is the SWOT Analysis which provides information that is helps align the firm’s resources and capabilities to the competitive environment in which it operates.

This is one of building blocks of an effective business strategy.

SWOT analysis serves as an internal and external environmental factors as an important strategic part of the business planning process. Internal factors can be classified as strengths (S) or weaknesses (W), and external factors as opportunities (O) or threats (T).

• Strengths refers to business resources and capabilities to establish a competitive advantage. These include: patents, strong reputation in the market and expert business knowledge.
• Weaknesses in the business can be seen as the lack of competitive advantage or the absence of significant strengths. These include: lack of patent protection, mad reputation in the market and the lack of expertise among the work force.
• Opportunities come in the form of the ability and scope for future profit and growth within the business and the market. Opportunities arise in the form of new or unfulfilled customer requirements, new technologies and new local or international trade possibilities.
• Threats come in the form of changes in the external business environment that may have an adverse effect on the business such sanctions, trade regulations and a shift in consumer behavior.

Now that you know what your business’s strengths ,weaknesses, opportunities and threats are we will be able to continue developing your competitive advantages through the SWOT Matrix that will be discussed in my next post.

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