Get to know SWOT Analysis for Business, along with Examples!

SWOT analysis is a form of planning business strategy important for business people to do. SWOT itself is an abbreviation of strength (strength), weakness (weakness), opportunities (opportunities), and threats (threats).

With SWOT analysis, business people can build and grow a business. This analysis helps business people to understand business potential, starting from seeing problems, how to solve them to business opportunities in the future.

The point of view raised in the SWOT analysis itself is complete, including elements from both external and internal sides. Not only that, this analysis is also quite simple, making it easy to apply, even by novice business people.

Elements of SWOT Analysis

• Strength

The first element in a SWOT analysis is strength or strength. Strength here means what advantages a business has.

The advantages can be seen from the internal side of the company, for example, contained in the product, strategy to the idea of ​​the business itself.

• Weaknesses

This second element is the opposite of the first element. weakness or weakness in question is what a business lacks.

This deficiency can be seen from the internal side of the company, namely in the form of any components or things that can hinder the business journey.

• Opportunities

The third element, namely Opportunities or opportunity. The opportunity in question is related to any component or thing that can be an opportunity in developing a business. This element can be identified from external factors or parties outside the business.

• Threats (Threats)

Lastly, that is threats or threats. The threat in question is any component or thing that can be an obstacle in developing a business. This element can be identified from external factors or parties outside the business.

Example of SWOT Analysis in Business

The following are some simple examples of SWOT analysis, to evaluate the strengths, weaknesses, opportunities, and constraints in a business. Among other things, such as:

• Strength

1. Good reputation in the market.
2. The concept offered is always up-to-date or Update with the latest trends.
3. Product prices are affordable for everyone.
4. The quality of the material on the product is good and superior in the market.
5. Payments can be made in cash or non-cash from all digital payment platforms.

• weakness

1. Limited capital to increase the stock of goods.
2. The ability of the staff is not maximal in their field.
3. The company's cash flow is sometimes not smooth.
4. The business location is less strategic, and there is no access to public transportation.
5. Still not able to produce their own goods.

• Opportunity

1. The government is intensively encouraging business development in the sector it is engaged in.
2. There is no intense competition in the occupied sector.
3. There is a strong and continuous market demand.
4. Social media is a fast, cheap and high impact marketing platform.
5. Businesses can be run well, with relatively low capital.

• Threat

1. There are competitors with lower selling prices.
2. Price from beg change often.
3. Lack of interest from financial institutions to finance the sector they are engaged in.
4. Changes in market trends that are always changing very quickly.
5. Changes in competitors' strategies can threaten the business position in the sector they are engaged in.