Importance of SWOT Analysis
An organization cannot become successful without identifying its strengths, weaknesses, opportunities, and threats and taking actions accordingly. SWOT analysis helps a company in this regard a lot. It is an extremely useful tool for understanding and decision-making for all sorts of situations in business and organizations. It is a framework for identifying and analyzing the internal and external factors that can have an impact on the viability of a project, product, place, or person.
SWOT analysis is a careful evaluation of an organization’s internal strengths and weaknesses as well as its environmental opportunities and threats. Anyway, SWOT analysis is important for the following reasons:
Determining strengths: With the help of SWOT analysis, the strengths of an organization can be determined.
Identifying weakness: With the help of this analysis, the weaknesses of an organization can be found.
Discovering opportunities: Through the help of SWOT analysis, the potential opportunities of an organization can be discovered.
Detecting the threats: With the help of this analysis, the threats of an organization can be detected.
Help in taking proper action: With the help of this analysis strengths, weaknesses, opportunities, and threats of an organization can be easily identified.
And, on the basis of that identification, the company can take actions accordingly. So, these are the various reasons for which SWOT analysis ‘is significant for an organization.