Question

When it comes to defining the main aspects of a strategy, the SWOT analysis is the best way to detail them. It is an effective way to determine strengths, weaknesses, opportunities, and threats of a strategy. So. how can this affect a strategy? And in which ways it can affect the strategy?

Answer 1

The business builds its strategies based on its SWOT analysis which gives the idea of the business strength, Weaknesses, opportunities, and threats. Hence the opportunity of the analysis gives the idea of the business strengths that is its unique selling proposition. The weakness is the faults which may make the business competitive in a market. Opportunities are the scope that the business perceives in the markets to exploit its strategies which shall have an edge over others and support diversity and growth. Threats are the business challenges that the business may face in the market due to various reasons which affect the business outcomes.
Thus the SWOT is done to understand the business capacity which further helps to determine the ways that it should adopt to be competent in the market that it has analyzed with SWOT. So the business decides its strategies of business ahead keeping the analysis in the mind to make the right decisions or strategies that fit the business needs and its aspirations. So based on the resources and strengths the business proceeds and makes counterclaims to make the weaknesses and threats to be minimized with effective and innovative plans. Hence this is a tool that makes the people in the business make the right decision based on their capacities and will.