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Whether the business size is small, medium or large, the key to business analysis is “SWOT”, a tool to analyze internal and external factors that affect the business. Some of you might have heard of it, but those who have never heard of SWOT please do not worry because ACU PAY will introduce you what SWOT analysis is, where it comes from and how it is going to help in stable business growth.
SWOT is a tool to analyze Internal and External Factors, including predictions about the situation in the future. This easy-to-understand tool is called SWOT MATRIX, the inventor was an American researcher and business consultant named Albert Humphrey from the late 1960s to the beginning of 1970s.
There are 4 parts in SWOT analysis, Strengths, Weakness, Opportunities and Threats. It aims for the company to apply its strengths to market conditions, solve problems, and mitigate risks to the organization to continue its business smoothly.
Strength
An ability to produce high-quality goods and services that is more outstanding than rival companies and make customers love the products. For example, if you are the owner of the restaurant, your strengths are a selection of premium imported materials and have more than 10 years of experience cooking for major global hotels.
Weakness
Resources that organizations lack or business activities that their competitors do better. For example, a shortage of funds, and Service Mind training for service personnel is not effective enough, resulting in service quality not being able to compete with competitors.
Opportunities
The situation is favorable to the organization as the trend of Internet-based products that affect products has led to a steady increase in consumer demand for the products you sell.
Threats
The situation or conditions that have a negative impact on business such as the epidemic or the recession make people buy less.
SWOT analysis is key to prioritizing what organizations need to do to grow their business and plan for the future. It can also analyze the overall picture, review the business, plan for a controlled solution, and avoid potential market threats.
An effective SWOT analysis should be done together with corporate leaders, marketers, salespeople, and other people within the organization or even customer opinions are important to achieve the best results in different aspects, from product planning, advertising, to sales and customer service. SWOT analysis should be conducted every 6-12 months to continuously update problems or situations.
SWOT Analysis is a business management tool to find out what our advantages in the competition are when bringing our strengths and opportunities together. Even knowing the weaknesses and obstacles that allow us to find solutions, and how to remove the weaknesses and obstacles, to ensure future business stability.
