Definition of SWOT analysis

SWOT analysis is a form of analysis that is used by the management of a company

or organization that is systematic and can help in the business of preparing a
mature plan to achieve the goals of the company or organization. Both of these
goals are for long and short-term goals. In addition, SWOT analysis can also be
interpreted as a form of analysis of situations and conditions that are descriptive
(giving an image) about a company or organization. This analysis places the
situation and conditions as factors that are input.
One thing that needs to be considered for the user of this analysis, that theSWOT
analysis is solely used only as an analysis, is intended to describe the situation
that is being faced by a company or organization. SWOT analysis is not a tool that
can provide a way out of the problems at hand.
SWOT stands for Strength Weaknesses Opportunities Threats. Which means
Strength (strength), Weaknesses (weakness), Opportunities (Opportunities),
Threats (obstacles).

As we know, the SWOT analysis (Strength Weaknesses Opportunities Threats) is

divided into 4 parts, namely:

Strength (S) or referred to as strength analysis

Namely the situation or condition which is a picture of the strength of an

organization or company at this time. What must be done in using this analysis is
that every company or organization needs to assess the strengths and
weaknesses it has then compare it with its competitors. For example, if the
strength of the company is superior in quality, then that advantage can be
utilized to fill market segments that require a better level of quality.
Weaknesses (W) or referred to as weakness analysis

Namely the situation or condition which is a picture of the weaknesses of

an organization or company at this time. Weaknesses are a way to analyze
weaknesses in a company or organization. Which of these weaknesses can be a
serious obstacle in the progress of a company or organization. For example, if the
company has problems in poor marketing, the company must examine the
shortcomings that are related to the marketing sector. So that later these
problems do not make the company become less competitive and slurred
compared to other companies.

Opportunity (O) or referred to as opportunity analysis

Namely the situation or condition which is a picture of opportunities that

exist from the outside of an organization or company and this picture can provide
opportunities for the development of an organization or company in the future.
Opportunity is an analysis that is used to find opportunities or breakthroughs
that enable a company or organization to develop. Either in the past or in the
future. For example, a beverage industry company is in a hot area. Which area is
in desperate need of fresh drinks at affordable prices. So the company has the
opportunity to create a beverage product that is fresh and the price is affordable.

Threats (T) or referred to as threat analysis

Namely a situation or condition which is a picture of a threat from a

company or organization in carrying out a business. Theart is a way of analyzing
challenges or threats that must be faced by a company or organization in dealing
with various kinds of unfavorable environmental factors. Which of these threats
can cause a company to decline. If it is not immediately resolved, then the threat
will be a barrier for a business that will be carried out. For example, a group of
rattan craftsmen in rural areas. With increasingly modern environmental
conditions and the large number of forest fires that occur, it makes it more
difficult for them to obtain raw materials, so that the organization can analyze
what causes the challenge or threat to occur.

Internal factors
The first two letters in the acronym, S (strengths) and W (weaknesses), refer to
internal factors, which means the resources and experience readily available to
you. Examples of areas typically considered include:

 Financial resources (funding, sources of income, investment

opportunities)
 Physical resources (location, facilities, equipment)
 Human resources (employees, volunteers, target audiences)
  Access to natural resources, trademarks, patents and copyrights
 Current processes (employee programs, department hierarchies, software
systems)

External factors
External forces influence and affect every company, organization and individual.
Whether these factors are connected directly or indirectly to an opportunity or
threat, it is important to take note of and document each one. External factors
typically reference things you or your company do not control, sch as:

 Market trends (new products and technology, shifts in audience needs)

 Economic trends (local, national and international financial trends)
 Funding (donations, legislature and other sources)
 Demographics
 Relationships with suppliers and partners
 Political, environmental and economic regulations

SWOT analysis template

Bryan Weaver, a partner at Scholefield Construction Law, was heavily involved in
creating a SWOT analysis for his firm. He provided Business News Daily with a
sample SWOT analysis template used in the firm's decision to expand its practice
to include dispute mediation services.

STRENGTHS WEAKNESSES OPPORTUNITIES THREATS

Construction law No one has Most commercial Anyone can become
firm with staff been a construction a mediator, so other
members who are mediator contracts require construction law
trained in both law before or been mediation. Despite firms could open up
and professional through any hundreds of their own mediation
engineering/general formal mediators in the service as well.
contracting. Their mediation marketplace, only a
experience gives a training few have actual Most potential
unique advantage. programs. construction clients have a
experience. negative impression
Small (three One staff of mediation,
employees) – can member has For smaller disputes, because they feel
change and adapt been a part of mediators don't mediators don't
quickly mediations but work as a team, only understand or care
not as a neutral as individuals; to understand the
party Scholefield staff can problem, and rush to
offer anyone the resolve it.
advantage of a
group of neutrals to
evaluate a dispute
Benefits of SWOT Analysis
The SWOT analysis method is the most basic method of analysis in
conducting strategy analysis, which is useful for knowing a problem or a topic
from four different four sides. The results of this analysis are usually in the form
of directives or recommendations to maintain strength and to increase the profit
of a company to know the organization in terms of opportunities, while reducing
the shortcomings it has and also avoiding various threats that occur.
If used properly and correctly, this analysis will be used to help see the neglected
or invisible sides of a company or organization. From the description above,
SWOT analysis is an instrument that is useful in conducting strategy analysis in the
management of a company or organization. This analysis serves as a tool to minimize
weaknesses or shortcomings in a company or organization and reduce the impact of
threats that arise and must be faced.