The acronym SWOT is one of the most used in the world of business, marketing and business communications, which is why you have probably heard it more than once. Each of these letters has a meaning that is key when analyzing an organization, empowering it and improving it to guarantee its growth. Do you want to know more? Here we explain what the meaning of SWOT is.
The meaning of SWOT
The acronym SWOT brings together the initials of the term’s strengths, opportunities, weaknesses and threats. These are applied in order to analyze an organization both internally and externally.
The strengths and weaknesses of the organization are internally, related to the company’s own processes, while threats and opportunities are external and have to do with elements such as the market or competition.
The strengths of the organization are those competitive advantages that the company has internally and that allow it to distinguish itself from the competition. Processes, quality level, customer service among others.
The opportunities are presented externally, these are all those niches or spaces in which the organization could stand out or where the competition has not yet acted. These are usually analyzed based on the strengths of the company.
Like the strengths, the weaknesses are also internal. Within the SWOT or SWOT analysis, weaknesses are all those problems and aspects within the organization that must be improved or eliminated using an appropriate strategy.
The threats are all those external aspects that can affect negatively the organization, such as competitors ‘ actions, political or economic situation, among others. It is important to identify them so that you can take action on them.