What is the SWOT matrix? You’ve probably heard a lot about the SWOT matrix. This matrix is often used to analyze the economic situation, placed in an enterprise environment. Thanks to this tool, the company will easily identify strengths, weaknesses, seek opportunities and challenges. However, many people do not really understand this matrix and how to apply it to bring effective results. Let’s Writing Posts Xuyen Viet Find out in the article below. We will answer all your questions.
What is the SWOT matrix
The SWOT matrix is the abbreviation of the first letters of the 4 words in English:
- Strengths (Strengths)
- Weaknesses (Weaknesses)
- Threats (Danger)
This model is quite famous and popular in analyzing the business situation of businesses today. Strengths and weaknesses come from within the business, opportunities and challenges come from outside factors. This is the simplest way to understand SWOT.
What is the SWOT matrix?
However, the definition of a SWOT matrix is still understood in a different way. SWOT is used to analyze the factors that businesses will face including opportunities and risks. Along with that are the factors that belong to the inside of the business. From there, come up with the correct business strategy and suit the market situation.
In fact, the SWOT model appeared a long time ago, the 1960s and 1970s. Over a long period of research, until 2004, this matrix was completed and quickly showed its effectiveness when applying. used in organizations and businesses.
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SWOT matrix structure
SWOT is a useful tool to help you solve problems in many different situations. The application of SWOT matrix in business helps you identify strengths and overcome weaknesses that your company encounters.
More simply, you can understand that the SWOT matrix shows you where to attack and where to defend. Then, you will set up a plan or with the appropriate business strategies, with high efficiency. Once you know what the SWOT matrix is, you need to analyze each S, W, O, T factors as follows:
Identify clearly the strengths that your business has. Pay attention to clearly identify strengths so you can compete with competitors. Some strengths that businesses often have:
- Human resources, resources, properties.
- Experience, professional level.
- Product quality and durability.
- Optimal cost, competitive price in the market.
- Modern technical system, high technology applications.
- Marketing strategy.
The SWOT matrix is currently commonly used for businesses
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Weaknesses are the negative issues outstanding in the business that need to be overcome. These weaknesses will hinder the development of the company, even cause the company to fall back on the way to the goal.
At best, you need to frankly look at the truth to identify the weaknesses of your business. From there, proactively propose appropriate solutions to overcome or eliminate that weakness. Of course, to do that, businesses need a lot of time to renovate and change.
Try to give a lot of opportunities, the positive impact when doing business, helping you achieve a better result. Sometimes the opportunity is simply a competitor is very slow, miss good opportunities in business and your business has prepared carefully, ready to cope with difficulties.
Besides, there are many other opportunities such as changing trends of technology and more modern applications; access to many potential investors in the field; The development of the market paved the way for businesses to advance.
In addition, it is the policies and laws issued by the state to support the business of products and services of enterprises. This helps businesses quickly reap huge profits.
The SWOT matrix can be applied to many different fields
Finally, is the risk businesses face when engaging in any product or service business. You need to analyze exactly what external factors are causing difficulties for the business, extending the path to success you are aiming for. Attention, you should specifically list the problem.
After that, you need to devise appropriate solutions, reverse the business risk. Even help businesses cope with potential risks.
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Through the article, you know what a SWOT matrix is. This is an analysis model of business situation of companies, businesses now bring a comprehensive view for you. Besides, SWOT matrix is also applied in many different areas of life.
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