Comprehensive SWOT Analysis Guide
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ScribdTranslationsComprehensive SWOT Analysis Guide
Translated by
ScribdTranslationsSWOT Analysis
The SWOT analysis, also known as FODA or DOFA analysis, is a study methodology.
from the situation of a company or a project, analyzing its internal characteristics (Weaknesses and
Fortresses) and theirexternal situation (Threats and Opportunities) in asquare matrixIt is a
tool to understand the real situation of an organization, company, or
project, and plan a future strategy.2
During the strategic planning stage and based on the SWOT analysis, each must be answered.
one of the following questions:
How can each strength be highlighted?
How can one enjoy every opportunity?
How can each weakness or deficiency be defended?
How can each threat be stopped?
This resource was created in the early seventies and brought about a revolution in the
field of thebusiness strategyThe objective of the SWOT analysis is to determine theadvantages
competitiveof the company under analysis and the generic strategy to be employed by it that best suits it
it should be suitable based on its own characteristics and those of the market in which it operates.
The analysis consists of four steps:
External Analysis (also known as "Porter's Five Forces Model")
Internal Analysis
Preparation of the SWOT matrix
Determination of the strategy to be employed
External analysis
The organization does not exist nor can it exist outside an environment, outside of that environment that surrounds it; thus
that external analysis allows to identify the opportunities and threats that the context may present
to an organization.
The process to determine those opportunities or threats can be carried out as follows
way
a- Estableciendo los principales hechos o acontecimientos del ambiente que tiene o podrían tener
some relation with the organization. These can be:
Of a political nature
Of a legal nature
Of a labor character
b- Determining which of those factors could have influence over the organization in terms
to facilitate or restrict the achievement of objectives. That is, there are circumstances or facts present in the
environment that sometimes represents a good OPPORTUNITY that the organization could
take advantage, whether to develop further or to solve a problem. There may also be
situations that rather represent THREATS for the organization and that could make it more
serious problems.
Opportunities
Opportunities are those positive factors that arise in the environment and that, once
identified, can be utilized.
Some of the questions that can be asked and that contribute to development are: S
What circumstances improve the company's situation?
What market trends can benefit us?
Is there a conjuncture in the country's economy?
Threats
Threats are negative situations, external to the program or project, that can endanger
against this, so if necessary, it may be necessary to design an appropriate strategy to
to be able to raffle them.
Some of the questions that can be asked and that contribute to development are:
What obstacles does the company face?
What are the competitors doing?
Are there issues with capital resources?
Internal analysis
The internal elements that need to be analyzed during the SWOT analysis correspond to the
strengths and weaknesses regarding the availability of capital resources, personnel,
assets, product quality, internal and market structure, consumer perception, among
others.
The internal analysis allows for setting the strengths and weaknesses of the organization by conducting a study.
which allows knowing the quantity and quality of the resources and processes that the entity has.
To conduct the internal analysis of a corporation, different techniques must be applied that allow
identify within the organization what attributes allow it to generate a competitive advantage over
the rest of its competitors.
Fortresses
The strengths are all those internal and positive elements that differentiate the program or
project of others of the same kind.
Some of the questions that can be asked and that contribute to development are:
What qualities does the company have?
What advantages are there in the company?
What does the company do better than any other?
Weaknesses
Weaknesses refer to all those elements, energy resources, skills, and attitudes.
that the company already has and that constitute barriers to achieve the smooth running of the organization.
They can also be classified: aspects of the service provided, financial aspects, aspects of
market, organizational aspects, control aspects. The weaknesses are internal problems that,
Once identified and developing an adequate strategy, they can and should be eliminated. Some
Some of the questions that can be asked and that contribute to development are:
What can be avoided?
What should be improved?
What disadvantages are there in the company?
What do people perceive in the market as a weakness?
What factors reduce sales?
What are you doing wrong?
SWOT Matrix
Fortresses Weaknesses
Resources y capabilities
Capabilities distinct houses
Analysis
Advantages naturalResistance to the change
Internal
Superior resources Motivation problems of
personal
Opportunities Threats
better New
technologies
Analysis Weakening High risks - Changes in the
External competitors environment
Positioning
strategic
From the combination of strengths with opportunities arise the potentialities, which indicate
the most promising lines of action for the organization or company.
The limitations, determined by a combination of weaknesses and threats, present a serious
warning.
While the risks (combination of strengths and threats) and the challenges (combination of
weaknesses and opportunities), determined by their corresponding combination of factors,
They will require careful consideration when setting the course that the organization must take.
assume towards the desirable future how development would be.
A SWOT analysis can be used to:
Explore new solutions to problems.
Identify the barriers that will limit objectives.
Decide on the most effective direction.
Reveal the possibilities and limitations to change something.
Importance of SWOT analysis for decision-making in organizations
Decision-making is a daily process through which a choice is made between
different alternatives to address a variety of situations. At all times, there
they must make decisions. To make a correct decision regarding a topic, it is
It is necessary to know it, understand it, and analyze it, in order to be able to provide a solution. It is important.
remember that "without a problem, a solution cannot exist." Therefore, companies should analyze
the situation taking into account the particular reality of what is being analyzed, the possible
alternatives to choose from and the future consequences of each choice. The significant and concerning thing is
that there are a large number of companies facing their problems by making decisions about
automatic and irrational (not strategic) manner, and they do not take into account that the result of a bad or
Good choice can have consequences on the success or failure of the company. Organizations
they should carry out a more structured process that can give them more information and security to
the decision-making process and thereby reduce the risk of making mistakes. This is where the importance lies.
from the SWOT matrix as a necessary element to understand its real situation. Its preparation gives us
allows searching and analyzing, proactively and systematically, all the variables involved in the
negocio, con el fin de tener más y mejor información al momento de tomar decisiones. Si bien lo
essential for a company is the Business Plan, where the mission, vision, goals are outlined,
objectives and strategies, by correctly conducting the SWOT analysis, the
Offensive, Defensive, Survival, and Reorganization strategies necessary to comply
with the proposed business objectives.