|In this article: 1. How to analyse the strengths of a company 2. How to analyse the weaknesses of a company 3. How to analyse the opportunities of a company 4. How to analyse the threats of a company|
- Internal factors
- External factors
Internal Factors :Internal factors are the strengths and weaknesses of the company. Strengths are the qualities of a company that gives them a competitive advantage. Weaknesses are what the company needs to subdue to improve its performance. These are the characteristics that occur within the company. Example: company's operating efficiency, financial and human resources, brand awareness, etc. It is largely influenced by the company's organizational structure.
External Factors:External factors are opportunities and threats for a company. Opportunities are factors that the company can pursue to generate value. Threats are factors that prevent the company from achieving its goals. Example: Changes in government regulations, monetary policies, market trends etc. It is largely influenced by the outside economic environment. Let's understand these four parameters in detail. Breaking down SWOT analysis process:
How to analyse the strengths of a company
- What does the company do better than its peers?
- What values drive their business?
- Which unique resources can they draw upon that others can't?
- How efficient are they at managing their cost?
- What advantages does the company have that their peers don't?
- How loyal is their customer base?
How to analyse the weaknesses of a company
How to analyse the opportunities of a company
- What interesting market trends are you aware of?
- Are there any changes in technology that the company can take advantage of?
- Is the company being impacted because of the same? Or are they able to improvise using it as an opportunity?
How to analyse the threats of a company
- What obstacles does the company face?
- What are their competitors doing better than them?
- Is a change in technology threatening the position of the company?
- Do changes in lifestyle, social patterns, etc., pose a threat to the company?
- Can a change in a particular government or economic reform shake their operations?