SWOT analysis (acronym of English words: Strengths, Weaknesses, Opportunities, Threats) is a technique that links the strengths and weaknesses of a company with the opportunities and threats in the external environment. The author of this method is Albert Humphrey (1960). year) from USA Stanford University, where he analyzed and used the development strategies of the 500 strongest companies in the world (Fortune 500).
Although it was originally intended for current technology companies for business purposes, it quickly began to be applied in the domain of development strategy of society (state, local self-government), social institutions, health, education, culture, art, as well as for personal existence, ie. in identifying one’s own strengths and weaknesses, chances and threats in building a career with the employer for a better position or for making a decision on starting and developing one’s own business based on innovations in quality, design, productivity, competitiveness.
Whether you want to sell an idea, offer it to an employer or start and develop your own business, you can use our INVESTASISTENT as an additional tool, in order to state the profitability rating of the idea.
Analysis of internal factors
- Strengths: Your strengths can be qualified staff, team, experience, available resources (technological equipment, raw material base), market position, innovative products, investment and creditworthiness…
- Weaknesses: Poor creditworthiness – lack of team, experience, qualified staff, creditworthiness, ie. financial resources (especially for beginners in business), inflexibility (poor adaptation to market changes), poor financial analysis to prove the profitability of the idea and attract co-investors…
Analysis of external factors
- Chances: Innovative product, developed more advanced technology, profitability of the idea, favorable market situation, ie. favorable economic-socio-political environment,….
- Threats: Unfavorable economic-socio-political environment, lack of state incentives and favorable loans, especially for beginners in business, strong competition in the planned activity, strong competition that quickly develops more innovative products,….
