Question

Explain what the SWOT tool is used for? Your response should be a minimum of 250 words.

Answer 1

SWOT refers to strengths, weaknesses, opportunity, threat. The SWOT tool is the most popular tool used by organizations to find out the strengths, weaknesses, opportunities and threats of their as well as of the rivals in the market.

The strengths and weaknesses are the internal factors in the tool and helps in finding out the current position of the business. It highlights what is going good and accurate within the management and what factors are responsible for the weakness.

Whereas, the opportunities and threats are the external factors in the tool and helps to find out the opportunities that can be grabbed by businesses from the external environment and also the threats from which to protect its working.

Basically, the company after finding out its own strengths, weakness present within the system, opportunity available in the open market and threats present in the market that can harm the business, can think of using its strengths to come over the threats present in the market. On the other hand, try to grab the possible opportunities and get away and remove its weakness.

It can be concluded, that the SWOT tool helps every organization to build up its own strengths, work on the weaker sections, try to come over the threats and grab every opportunity available in the market. Hence improve on its overall efficiency. productivity and become a leader in the market. It also helps the organisations create and frame strategies and reach out the good strategic decisions which will benefit in the long run for survival in the market.