TSR Wiki > Study Help > Subjects and Revision > Revision Notes > Business Studies > SWOT Analysis
Swot analysis is used to conduct a general and quick examination of a firm’s current position so it can identify it’s position in the market and likely directions for the future. It involves looking at the internal strengths and weaknesses of a business and the external opportunities and threats.
Firstly the firm will identify it’s strengths, these are things which:
- They are effective at
- They are well known for
- Make money
- Generate a reputation
- Cause repeated business from the same customers
- Cause other businesses to learn from them
- Then the Firm will look at its internal weaknesses. This includes any causes for disputes, loses, complaints etc.
Opportunities are directions that the firm could take into the future and make a profit from them.
Threats to a business arise from the activities of competition and from failing to build on arising opportunities Also threats can come from a lack of profit perhaps due to a rise in costs
Swot analysis is usually done as a brainstorming event as it is an effective way of gathering information. Swot Analysis is often used in the marketing department as a method of which to produce its marketing strategy.
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