SWOT (Strengths, Weaknesses, Opportunities, Threats)

SWOT

SWOT analysis is an analysis that was initiated by Albert Humphrey in the 1960s-1970s. SWOT Analysis is a strategic planning method used to evaluate the strengths (Strengths), weakness (Weaknesses), opportunities (Opportunities), and threats (Threats) in a project or a business venture. This is a technique to provide a framework for systematically identifying the position of the organization and identifying the internal and external factors that support and are not in achieving the specific objectives of the business venture or project. Objective SWOT analysis is to separate the principal problem and facilitate strategic approach. 

The four factors of SWOT analysis, among others:

1. Strengths 

Conditions of the power contained within the organization, project or business. Strength is a factor analysis contained in the body of the organization, project, or business itself.

2. Weaknesses 

Conditions contained weaknesses in the organization, project or business. Weaknesses are analyzed factors contained in the body of the organization, project, or business itself.

3. Opportunities

Conditions opportunities that will evolve in the future. A condition that occurs from the opportunities outside the organization, project, or business itself, such as competitors, government policy, etc..

4. Threats

Conditions that threaten the organization, project, or business from outside.


How it Works

Analysis is SWOT can be done with five steps:

1) Identify weaknesses and threats are most important to be addressed in general in all the components.

2) Identify strengths and opportunities are expected to work well for efforts to address the weaknesses and threats that have been identified earlier in Step 1.

3) Insert points on identification (Step 1 and Step 2) to the SWOT Analysis Patterns. This step can be done as a whole, or if it is too much, it can be divided into SWOT analysis for component inputs, processes and outputs.

4) Formulate a strategy or strategies are recommended to address the weaknesses and threats, including troubleshooting, repair, and further development.

5) Prioritise handling the weaknesses and threats, and formulate a plan of action to implement the treatment program.

SWOT dominance

SO: The situation is very favorable, the company has opportunities and internal strengths, so that with their power to exploit the opportunities that exist to be a boon for the company. The strategy should be applied in these circumstances is to support aggressive growth policy.

WO: Situations where companies face a huge market opportunity but has internal weaknesses. So the focus should be directed to the company's strategy to minimize these weaknesses

ST: Situations where companies face a variety of threats, but has the internal strength, so we need a strategy that uses force to take advantage of opportunities by way of long-term diversification strategy (product / market)

WT: This situation is an unfortunate situation, where companies face a variety of threats from outside are also internal weaknesses. The strategy needs to be done is to minimize internal weaknesses as well as looking for new opportunities.