When I was pursuing my degree, I had taken a course Management-101. Which introduced me to SWOT Analysis for business evaluation. But, never did I thought that I would find its use in application handling. This article is part of the “Application Handling series”. Where I will give insights into management technique which worked for me in handling a complex and critical application.
What is SWOT Analysis?
SWOT Analysis stands for (Strengths, Weaknesses, Opportunities, and Threat) Analysis is a framework, which is used to evaluate a company’s competitive position and to develop strategic planning. In short, it is used for finding out where your company stands currently, and what needs to be done to improve your position.
What does SWOT Analysis Do?
A SWOT analysis facilitates a realistic, fact-based, data-driven look at the strengths and weaknesses of an organization and its initiatives.
So it’s really important to have accurate information about your internal and external factors and avoid beliefs/assumptions/biased predictions and any other such grey area which do not have sound data to back those assumptions or predictions. Instead, we would need to stick to real-life contexts.
Lets understand what each tile means:
- Strengths: It describes what you are good at which separates you from the competition. For an organization, it could be a strong brand, loyal customers base, good balance sheets, year on year sales value and so on.
- Weaknesses: It describes the factors such as weak brand, high turn over, less R&D, an inadequate supply chain, lack of capital, etc where an organization has to improve such that it can remain to have its competitive advantage.
- Opportunities: It describes the factors that could give an organization a competitive advantage like tax cuts, investment, trends, etc
- Threats: It describes the factors that can have potential harm over an organization like tax increases, government intervention, supply chain issues, problems with raw materials and so on.