What Does the acronym SWOT stand for? Briefly discuss each element of the SWOT citing four examples for each, from the Zillow .Also explain how a SWOT analysis is conducted and when it is used.
SWOT analysis is a systematic approach to understand the total environment. SWot analysis is elaborated as Strength, weakness, opportunities , threats . Business firms take SWOT analysis to understand the internal as well as external environment. It helps to understand the organization’s existing weaknesses and strength and accordingly organization analyses the opportunities and threats in the environment so that effective strategy can be formulated.
The components of SWOT analysis are-
SWOT analysis enables the firm in identification of various strategic alternatives, by analyzing its internal strength and weakness by considering external opportunities and threats.
It helps the manager to craft the business model that helps to gain a competitive advantage in the industry, which also helps to increase profitability and achieve growth in fast changing global business environment.
It provide the logical framework for systematic and clear understanding of all the issues which may have implications for organization in short and long term.
It provide information in a structured form about both external and internal environment, where one can compare external opportunities and threats with internal strengths and weaknesses. It helps in developing pattern in of relationship by matching opportunities, threats ,strength and weakness.
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