The SWOT concept, also known as SWOT or SWOT, is a study tool that addresses the situation of a company or business project. To do this, it analyzes its internal characteristics, such as strengths and weaknesses, as well as external ones, such as opportunities and threats. This term comes from the acronym SWOT, from the concepts (Strengths, Weaknesses, Opportunities and Threats. This analysis gets to know the true situation in which an entity or a company is, thus being able to better organize the future strategy.
The main objective of the SWOT is that with the information that is obtained about its situation, the company can face organizational changes or make decisions that better adapt to the demands of the market.
Características del análisis DAFO
Going deeper into the internal analysis, we must study the strengths and weaknesses. The strengths show the incidents of the company that make it different from the competition. For its part, the weaknesses reflect the elements that leave us in an unfavorable situation compared to our competitors.
The external analysis studies the opportunities and threats. The first term analyzes the possibilities that they must take into account to grow in the future, such as the new markets in which the company may have a presence. Threats, for their part, warn of the factors that put the survival of the business at risk.
Depending on the results obtained once the SWOT has been carried out, the company must implement one strategy or another. There are different types of strategies, such as offense, defense, redirection or survival.
The definition of SWOT analysis, therefore, focuses on determining the competitive advantages of the company under analysis, and the strategies to follow that most interest it based on the market and its characteristics.
This technique was devised by Albert S. Humphrey during the 60s of the last century in an investigation of the Stanford Institute of Researchers, which was intended to discover the reasons why business planning failed.
How to do a SWOT analysis?
Keys to present the SWOT analysis of a company