What is a SWOT model?

What is the SWOT model? Effective application of SWOT in business

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For many students and those who often make plans, they have more or less thought of or used the SWOT model. This is an effective tool, very helpful in setting goals and building plans. So let Johnson's Blog analyze the topic What is a SWOT model?? and how effective is the application of SWOT in business? as well as how to build an effective SWOT matrix. 

What is a SWOT model?
Learn about the SWOT model

What is the SWOT model?

SWOT model is a well-known business analysis model. This model consists of 4 elements represented by 4 abbreviations: S - Strеngth (Strength), W - Wеаknеssеs (Weakness), O - Oрроrtunitiеs (Opportunities) and T - Thrеаts (Challenges).

SWOT is the most applied in the business field to analyze the competitive situation of enterprises in the market. In addition, it is also used for each individual to analyze themselves, based on which to plan for the future.

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Factors in SWOT

Strengths – Strengths

Strengths describe the outstanding characteristics of an individual or organization that make them special or have an advantage over competitors. For businesses, these strengths come from internal resources such as: trademark strong, loyal customer base, strong balance sheet, unique technology, etc. 

What are some questions to help you identify strengths in the SWOT model? The effective application of SWOT in the company is:

Factors in SWOT
Factors in SWOT

– What are you doing best?

– What internal resources do you or your company have?

– How does your company own advantages in terms of people, knowledge, reputation, skills, relationships, technology?

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Weaknesses – Weaknesses

Weaknesses are things that can prevent an organization from operating at its optimal level. You need to recognize it to have timely improvement solutions. For businesses, the weaknesses that may exist are weak brands, lower-than-average revenue, high debt levels, inadequate or underfunded supply chains, etc.

What are some questions to help you identify weaknesses in the SWOT model? Effective application of SWOT in the company

– What things are you doing that are not up to standard?

– Are there any bad reviews about you?

– Why do customers choose competitors' products/services?

– Are human resources, current facilities weak or not?

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Opportunities – Opportunity

Opportunity refers to external factors that can bring convenience or a competitive advantage to an individual or an organization. This can come from the blooming of the market, evolving technology trends, problems with competitors, etc. For example, if a country cuts tariffs, a car manufacturer can export. Your car represents a new market, increasing its sales and market share.

Building the right and effective SWOT matrix
Building the right and effective SWOT matrix

What is the application of the SWOT model? Effective application of SWOT in business to identify opportunities 

– What objective conditions from the outside can help you develop your strengths?

– What technology trends can you capture to develop?

– What Government policies can help you develop your career?

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Threats – Threats

The challenge is that external factors can harm the development of self, organization or profession. Some of the factors that can be mentioned are competitors, natural disasters, epidemics, government policies, market fluctuations, etc. You can't control the risks, but you can anticipate and offer different options. contingency project.

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The SWOT model is commonly used in Identifying a few questions helps you define the challenge:

– What policies may affect your business?

– What potential competitors are thriving?

– How can natural disasters and epidemics affect your business?

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Building the right and effective SWOT matrix 

Set up the SWOT matrix

The first thing you need to do when building SWOT matrix of a business is to set up a model in tabular form with all the elements S, W, O, T and SO, WO, ST, WT as well as arrange these factors in reasonable positions.

This gives you a more intuitive view to easily combine them and create a reasonable strategy. Then, you need to carefully and fully understand the internal and external factors to fill in the 4 boxes S, W, O, T.

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Find and develop strengths

In order to maximize the strengths in the Strength part, you will have to combine properly with the components of the Elements element. In order for the strategy to develop strengths to be the best, you must research carefully to select the appropriate points and opportunities together.

Identify and transform risk
Identify and transform risk

For example, if your strength is a growing logistics system, you can take advantage of an increase in your customers' online purchases to create a competitive advantage over your competitors. 

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Identify and transform risk

When you have recognized the potential risks and risks, you need to convert them into opportunities for improvement with available resources and strengths. However, not all risks can help you turn into opportunities, so businesses should combine them appropriately.

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Seize and take advantage of the opportunity

This step is about how you improve your internal weaknesses to promptly seize existing opportunities. To develop this strategy, you need to recognize which weaknesses will help businesses seize opportunities if overcome well. This selection step is very important because the cost to improve something is usually not small.

Eliminate threats

This strategy is different from risk transformation, it refers to anticipating possible “threats” or problems because of current weaknesses and shortcomings. You need to honestly acknowledge the problem and improve it at the earliest to minimize the risk of future occurrence.

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Hopefully, through this article, you will have information about What is the SWOT model? Effective application of SWOT in the company but also for themselves to orient and build effective plans for the future. If you find the article useful, please share it with many people!


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