What is SWOT analysis?

What is SWOT analysis?

In order to know where the organisation stands in the market and for developing an effective marketing mix, a SWOT analysis is conducted by an organisation. SWOT stands for :

a.Strengths: the organisation needs to know its areas where it has advantages where it can focus on and convert them into opportunities . These are internal to an organisation.

b.Weaknesses: These are also internal to the organisation . It must know the areas where it is lagging behind or its drawbacks, so that it can work on them and try to improve upon.

c.Opportunities: These represent the future prospects of the company which it can explore.

d.Threats: These are external to an organisation and are often posed by rival firms or changing demands, habits ,tastes and preferences, market saturation etc.