SWOT Analysis

SWOT stands for Strengths, Weaknesses, Opportunities, and Threats, and so a SWOT Analysis is a technique for assessing these four aspects of your business.

Strengths
Strengths are things that your organization does particularly well, or in a way that distinguishes you from your competitors. Think about the advantages your organization has over other organizations. These might be the motivation of your staff, access to certain materials, or a strong set of manufacturing processes. Your strengths are an integral part of your organization, so think about what do you do better than anyone else? Any aspect of your organization is only a strength if it brings you a clear advantage.

Weaknesses

Weaknesses, like strengths, are inherent features of your organization, so focus on your people, resources, systems, and procedures. Think about what you could improve, and the sorts of practices you should avoid, and take time to examine how and why your competitors are doing better than you.

Opportunities

Opportunities are openings or chances for something positive to happen.

They usually arise from situations outside your organization, and require an eye to what might happen in the future. Being able to spot and exploit opportunities can make a huge difference to your organization's ability to compete and take the lead in your market.
Examples: Reduction of taxes on our products, the government offers free training, congresses are held to link with other companies, among others.

Threats
Threats include anything that can negatively affect your business from the outside. It's vital to anticipate threats and to take action against them before you become a victim of them. Always consider what your competitors are doing, and whether you should be changing your organization's emphasis to meet the challenge. But remember that what they're doing might not be the right thing for you to do, and avoid copying them without knowing how it will improve your position.