Question

Explain how a SWOT analysis can be useful in the following

a) problem solving

b) competitor evaluation

Answer 1

An organization uses the SWOT analysis for determining the internal factor- strengths and weaknesses and the external factors- opportunities and threats that could influence the operation and the performance of the organization. Apart from this, the SWOT analysis could be useful in problem-solving and competitor evaluation.

SWOT analysis and problem-solving- the SWOT analysis could be used for problem-solving by focusing on the analysis information such as the strength and weaknesses of the firm and where an organization could increase its revenue and what strategies should be taken to eliminate the weakness. This analysis places the problems regarding the strength as well as vulnerabilities.

SWOT analysis and competitor evaluation- the SWOT analysis could be used in the evaluation of the competitors of the organization as one of the components for the threats. The analysis provides information about the position of the organization compared to its counterparts. It provides information about which company or new intern could be a threat to the organization. It also provides information about the competitors’ strength weakness and marketing strategy.